Shares of Lowe’s Companies, Inc. (NYSE: LOW) dropped 2% on Tuesday. The stock has gained 24% over the past three months. The home improvement company is scheduled to report its earnings results for the fourth quarter of 2025 on Wednesday, February 25, before market open. Here’s a look at what to expect from the earnings report:
Revenue
Analysts are projecting revenue of $20.34 billion for Lowe’s in the fourth quarter of 2025, which indicates an increase of over 9% from the same period a year ago. In the third quarter of 2025, total sales increased 3% year-over-year to $20.8 billion.
Earnings
The consensus estimate for earnings per share in Q4 2025 is $1.94, which implies a slight rise from adjusted EPS of $1.93 reported in Q4 2024. In Q3 2025, adjusted EPS increased 6% YoY to $3.06.
Points to note
Lowe’s performance in the fourth quarter is likely to have been impacted by softness in large discretionary projects, economic uncertainty, and lack of storm-related demand. However, it may benefit from consumers choosing to repair or remodel their existing homes rather than moving to new homes due to housing market headwinds.
The Mooresville, North Carolina-based retailer is seeing positive performances across both its Pro and DIY, or do-it-yourself, customer segments. It is working on improving its digital capabilities. Higher traffic and strong conversion has helped drive double-digit growth in online sales, and the company is working on enhancing the shopping experience across its website and mobile app. It is also gaining from its loyalty program, as My Lowe’s Rewards members tend to spend 50% more than non-members.
Lowe’s is seeing growth with the small to medium Pro customer group and it continues to work on enhancing its Pro offering and building its capabilities to simplify order and delivery processes for Pro customers. The home improvement company is focusing on expanding its services to the larger Pro customer and the acquisitions of FBM and ADG are anticipated to aid in this expansion.