Lowe’s Lifts Sales but Trims Profit Forecast as Shaky Economy Hits Big Projects

Lowe’s, CNBC, and Investor’s Business Daily contributed to this report.

Lowe’s managed to grow sales last quarter and even top Wall Street’s earnings expectations — but the home improvement giant is sounding a bit more cautious about the rest of the year.

For its fiscal third quarter, Lowe’s reported adjusted earnings of $3.06 per share, beating analyst estimates of $2.97. Revenue came in at $20.81 billion, slightly above last year’s $20.17 billion and basically in line with forecasts. Comparable sales ticked up 0.4%, helped by double-digit growth online, stronger “pro” customer spending and gains in home services and appliances.

Even so, the company nudged its full-year profit outlook down. Lowe’s now expects adjusted earnings of about $12.25 per share, which is still within its prior guidance but now sits at the lower end of the earlier $12.20–$12.45 range. It also cut its forecast for comparable sales from “flat to up 1%” to simply flat versus last year, signaling that demand isn’t bouncing back as quickly as hoped. One big change: thanks to its recent acquisition of Foundation Building Materials (FBM), Lowe’s now expects total sales of about $86 billion, up from its prior $84.5–$85.5 billion range.

On the earnings call, CEO Marvin Ellison stressed that the US homeowner is still in decent financial shape — but acknowledged the drag from the broader economy. High borrowing costs and lingering uncertainty are making customers think twice about big-ticket, discretionary projects like remodels. That lines up with what the company has been seeing for more than two years: a sluggish housing market and elevated interest rates weighing on demand.

Net income for the quarter slipped to $1.62 billion, or $2.88 per share, down from $1.7 billion, or $2.99 per share, a year earlier. The drop mainly reflects acquisition-related costs and higher expenses, even as revenue grew. Stripping out those one-time items tied to FBM and the earlier Artisan Design Group deal, the underlying business looked healthier, with adjusted EPS rising year over year.

Investors liked what they saw in the near term. Lowe’s said the current quarter is off to a solid start with positive comps continuing into November, and shares jumped more than 3–4% in early trading Wednesday. Management also highlighted some pockets of strength: “pro” customers, appliances, kitchen and bath, flooring and home services all showed encouraging trends — many of them categories tied to larger projects that could signal improving confidence down the road.

Still, Lowe’s isn’t pretending the environment is easy. Just a day earlier, rival Home Depot cut its own full-year profit outlook and blamed a familiar trio: a tough housing market, fewer storms than usual, and nervous consumers. Lowe’s CFO Brandon Sink echoed that tone, saying the company remains “cautiously optimistic” about 2026 but is planning the rest of 2025 around a roughly flat home improvement market, relying more on its own strategy and acquisitions than on an economic tailwind.