Lowe's Companies Inc (NYSE:LOW) Reports Q3 Earnings Beat and 5.77% Pre-Market Surge

Lowe's Companies Inc (NYSE:LOW) reported third-quarter financial results that presented investors with a mixed performance picture, driving significant pre-market trading activity as market participants digested the numbers against expectations.

Earnings Performance Versus Expectations

The home improvement retailer delivered a notable beat on bottom-line performance while falling slightly short on the top line, creating a complex narrative for analysts and investors.

• Non-GAAP EPS: $3.06 reported versus analyst estimates of $2.9973
• Revenue: $20.81 billion reported versus analyst estimates of $21.03 billion

The adjusted earnings per share of $3.06, which excludes one-time acquisition expenses, represents a 5.9% increase compared to the prior year's adjusted figure. This demonstrates the company's ability to maintain profitability and manage costs effectively, even in a quarter where overall sales growth was more subdued. The revenue miss, while relatively narrow, suggests that consumer spending at Lowe's was slightly softer than the market had anticipated for the quarter.

Market Reaction and Price Action

The immediate market response to this earnings report has been decisively positive, as reflected in pre-market trading. The stock is indicating an opening gain of approximately 5.77%. This bullish reaction suggests that investors are placing greater emphasis on the earnings beat and the company's profitability measures than on the slight revenue shortfall. This positive momentum stands in contrast to the stock's recent performance, which has seen declines over the past several weeks.

• Pre-Market Performance: +5.77%
• Recent Performance: -6.70% over the past week; -10.48% over the past month

Key Takeaways from the Press Release

Beyond the headline numbers, the company's earnings release highlighted several important operational details. Comparable sales, a key retail metric, increased by 0.4% for the quarter, indicating modest organic growth. The reported GAAP diluted EPS was $2.88, a figure that was impacted by $129 million in pre-tax expenses related to the strategic acquisitions of Foundation Building Materials and Artisan Design Group. Management also noted that they have updated their full-year 2025 outlook, signaling confidence in their strategic direction and operational execution for the remainder of the fiscal year.

Looking Ahead

Analyst expectations for the upcoming quarter and full fiscal year provide a benchmark against which the company's updated guidance can be measured. For the fourth quarter of 2026, the consensus estimates project revenue of approximately $19.57 billion and earnings per share around $2.09. For the full 2026 fiscal year, analysts are forecasting sales of about $85.97 billion and revenue of $12.44 billion. Investors will be closely monitoring how the company's own outlook aligns with these projections.

For a detailed breakdown of historical earnings, future estimates, and analyst ratings, you can review the complete data on the LOW earnings and estimates page.

Disclaimer: This article presents a summary of recently reported financial data and market performance for informational purposes only. It is not intended as investment advice, financial guidance, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.