# Lowe's Companies Inc. (LOW) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/LOW/thesis · /stocks/LOW/memo

## Financial 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/LOW/fundamental

## Navigation

- Overview: /stocks/LOW
- Financials (this page): /stocks/LOW/financials
- Thesis: /stocks/LOW/thesis
- Investment Memo: /stocks/LOW/memo
- Coverage universe: /stocks