Lowe’s second quarter results aligned with Wall Street revenue expectations, with management crediting steady growth in both professional contractor and do-it-yourself segments as well as a recovery in seasonal sales. CEO Marvin Ellison highlighted continued progress from productivity initiatives, noting, “Our perpetual productivity improvement initiatives continue to deliver results.” Enhanced online experiences and partnerships—such as the launch of a creator network—also contributed to increased customer engagement. The quarter benefited from improved weather, which supported a rebound in categories like lawn and garden.
Is now the time to buy LOW? Find out in our full research report (it’s free).
Lowe's (LOW) Q2 CY2025 Highlights:
- Revenue: $23.96 billion vs analyst estimates of $23.99 billion (1.6% year-on-year growth, in line)
- Adjusted EPS: $4.33 vs analyst estimates of $4.24 (2.1% beat)
- Adjusted EBITDA: $3.97 billion vs analyst estimates of $3.97 billion (16.6% margin, in line)
- The company lifted its revenue guidance for the full year to $85 billion at the midpoint from $84 billion, a 1.2% increase
- Adjusted EPS guidance for the full year is $12.33 at the midpoint, beating analyst estimates by 0.9%
- Operating Margin: 14.5%, in line with the same quarter last year
- Locations: 1,753 at quarter end, up from 1,746 in the same quarter last year
- Same-Store Sales rose 1.1% year on year (-5.1% in the same quarter last year)
- Market Capitalization: $144.8 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Lowe's’s Q2 Earnings Call
- Steven Forbes (Guggenheim Securities) asked about the year-to-date performance of FBM and its product overlap with Lowe’s; CEO Marvin Ellison said details will come post-closing but emphasized immediate cross-selling benefits.
- Peter Benedict (Baird) questioned pro sentiment and labor availability; Ellison noted stable backlogs but rising labor costs and highlighted a skilled trades shortage impacting some regions.
- David Bellinger (Mizuho Securities) inquired about customer mix and capability gaps filled by FBM; CFO Brandon Sink described a diverse, low-concentration customer base, while Ellison underscored the combined offering’s appeal to large builders.
- Christopher Horvers (JPMorgan) asked if improved comps signal a market inflection or just seasonal bounce; Sink clarified that management expects similar market conditions ahead, with gradual improvement tied to strategic initiatives.
- Steven Zaccone (Citi) probed the impact of FBM on margins and capital allocation; Sink said the acquisition will deepen pro penetration and drive long-term growth, with share repurchases paused until leverage targets are met.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be watching (1) the pace and effectiveness of FBM and ADG integration, especially the realization of cross-selling and fulfillment synergies; (2) ongoing adoption and impact of digital tools like MyLo Companion and marketplace expansion; and (3) Lowe’s ability to capture share in key pro and geographic markets as macro conditions evolve. Execution against these milestones will be crucial for tracking sustainable growth.
Lowe's currently trades at $258.33, in line with $256.50 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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