Lowe's Companies Inc.
LOWFinancial Snapshot
ticker: LOW step: 04 generated: 2026-05-12 source: quick-research
Lowe's Companies, Inc. (LOW) — Financial Snapshot
(Lowe's fiscal year ends in late January/early February; FY2025 = year ending ~Feb 2026.)
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|---|---|---|---|---|
| Net Sales | $86.4B | $83.7B | $86.3B | +3.1% |
| Comparable Sales | -4.7% | -2.7% | +1–2% (turn to positive) | inflection |
| Adjusted Operating Margin | 13.4% | 12.2% | 12.1% | ~flat |
| Operating Margin (GAAP) | 13.2% | 12.0% | ~11.8% | -20 bps |
| Adjusted EPS | $13.20 | $12.05 | $12.28 | +2% |
| GAAP EPS | $13.20 | $12.05 | ~$11.85 | -1.7% |
Cash Flow & Capital Allocation (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$9B |
| Capital Expenditures | ~$2B |
| Free Cash Flow | $7.7B |
| Dividends Paid | $2.6B |
| Share Repurchases | ~$3.5B+ |
| Quarterly Dividend | $1.20 |
| Annual Dividend | $4.80 |
| Dividend Yield | ~1.8% |
| Total Debt | ~$36B |
| Net Debt / EBITDA | ~2.5x |
FY2026 Guidance
| Metric | 2026 Guide |
|---|---|
| Total Sales | $92.0–94.0B (+7–9% incl. FBM + ADG full year) |
| Comparable Sales | flat to +2% |
| Operating Margin (GAAP) | 11.2–11.4% (compression vs. FY25 on FBM/ADG dilution) |
| Adjusted Operating Margin | 11.6–11.8% |
| GAAP EPS | $11.75–12.25 |
| Adjusted EPS | $12.25–12.75 |
| Capex | ~$2B+ |
(Adjusted figures exclude 40 bps margin + $0.50 EPS impact from FBM/ADG intangible amortization)
Key Ratios (approximate)
- P/E: ~22x (FY26 adjusted EPS midpoint) | EV/EBITDA: ~16x | FCF Yield: ~5.0%
- Revenue Growth (FY25): +3.1% | FCF Margin: ~9%
- Adjusted Operating Margin: 12.1% (FY25); 11.7% (FY26 guide)
- Dividend Yield: ~1.8%
- Net Debt / EBITDA: ~2.5x
Growth Profile
FY25 marked positive comparable sales after two consecutive years of negative comps (FY23 -4.7%, FY24 -2.7%). Plus the company executed two major M&A deals — Foundation Building Materials (FBM) wholesale distribution + Artisan Design Group (ADG) flooring installation — adding ~$8B+ of run-rate revenue and explicitly targeting Home Depot's SRS playbook. FY26 guide:
- Sales growth +7–9% (incl. FBM + ADG full year; underlying organic +1–2% comp).
- Margin compression to 11.2–11.4% GAAP (FBM + ADG intangible amortization 40 bps drag; pre-spin-cost integration).
- EPS roughly flat at midpoint despite revenue +7–9% (acquisition dilution).
The strategic story is catching up to Home Depot on Pro distribution + housing thaw optionality. If 2026 Fed rate cuts unfreeze housing turnover, Lowe's DIY-heavy mix could reaccelerate faster than Home Depot's Pro-heavy mix.
Forward Estimates
FY2026 Guide:
- Sales: $92–94B
- Adjusted EPS: $12.25–12.75
Bull case: Housing turnover reaccelerates with Fed rate cuts; comp sales hit +3–5% in FY27; FBM + ADG synergies build; Pro mix accelerates to 30%+; multiple expands to 25x P/E. Bear case: Frozen housing market persists; DIY weakness extends; FBM + ADG integration disappoints; margin compression continues through FY27. Consensus targets ~$280–300 vs. trading ~$260–280 (~5–10% upside).
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $LOW.