Lowe’s beats estimates in Q4 despite housing macro pressures, sets optimistic 2026 outlook

Lowe’s (NYSE:LOW) reported fourth-quarter net earnings of $1 billion on Wednesday, delivering an adjusted diluted EPS of $1.98 that beat analyst estimates of $1.95.

The results represent a 2.6% year-over-year increase in adjusted earnings, fueled by a 1.3% rise in comparable sales despite a broader slowdown in the U.S. housing market.

Total sales for the quarter reached $20.6 billion, up from $18.6 billion in the prior-year period.

The revenue growth was bolstered by the recent acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG), which contributed to a strong showing in the "Pro" and home services segments.

The company recognized $149 million in pre-tax acquisition-related expenses during the quarter, which resulted in GAAP diluted EPS of $1.78.

For the full fiscal year 2025, Lowe’s returned $2.6 billion to shareholders, including $673 million in fourth-quarter dividends.

The company also maintained a disciplined capital allocation strategy, prioritizing productivity initiatives to offset macroeconomic headwinds such as elevated mortgage rates and cooling discretionary demand for large-scale renovations.

Looking ahead, the Mooresville-based retailer issued guidance that suggests stability in the coming year

Total sales are expected to fall between $92 billion to $94 billion.