Why did LOW's Q4 2025 EPS beat expectations?

Lowe's Q4 2025 EPS beat expectations due to several key factors:

1. **Strong Pro and Online Sales**: Lowe's experienced a 0.2% increase in comparable sales during Q4, driven by strong sales to professionals and online sales, which grew by 9.5%. This indicates effective execution of its strategic focus on the Pro market and a robust omnichannel strategy.
2. **Holiday Performance**: The company's holiday performance was particularly strong, with sales during the period ending January 31, 2025, exceeding expectations. This suggests effective marketing and inventory management during a critical shopping season.
3. **Adjusted Operating Margin**: Lowe's maintained an adjusted operating margin of 12.3% for the full year, which reflects efficient cost management and profitability. This consistency in margin performance contributes to positive earnings surprises.

In summary, Lowe's Q4 2025 EPS beat expectations due to strong sales performance, effective strategic execution, and robust financial management. These factors collectively contributed to the company's better-than-expected earnings results.