Lowe’s (LOW) Q4 2026 earnings summary

Executive summary

• Fourth quarter sales reached $20.6 billion, with comparable sales up 1.3% year-over-year, driven by growth in Pro, online, and home services, despite a pressured housing macro environment.

• Fiscal year 2025 sales totaled $86.3 billion, with adjusted EPS of $12.28, up 2.4% from last year, and a continued focus on customer satisfaction and operational execution.

• Disciplined expense management and productivity initiatives helped maintain adjusted operating margins, excluding acquisition impacts.

• Workforce reduction of approximately 600 roles announced to enhance financial agility and support investments in customer-facing areas.

• Discretionary bonuses totaling $125 million awarded to frontline associates for outstanding performance.

Financial highlights

• Adjusted operating margin for FY25 was 12.1%; Q4 adjusted operating margin was 9%, down 41 basis points year-over-year.

• Adjusted gross margin for Q4 was 32.7%, down 18 basis points, impacted by acquisitions but offset by higher credit revenue and productivity initiatives.

• FY25 gross margin was 33.5%, up 22 basis points year-over-year.

• Free cash flow for FY25 was $7.7 billion; $2.6 billion returned to shareholders via dividends.

• Capital expenditures totaled $2.2 billion, focused on strategic initiatives.

Outlook and guidance

• FY26 sales expected between $92 billion and $94 billion, with comparable sales flat to up 2%.

• Operating margin forecasted at 11.2%-11.4%; adjusted operating margin at 11.6%-11.8%.

• Adjusted diluted EPS expected at $12.25-$12.75, with acquisitions accretive to EPS but dilutive to margin.

• Capital expenditures projected at $2.5 billion, focused on retail business.

• Q1 comp sales expected below midpoint of full-year guide due to severe winter storms.