Lowes Companies 2026 Q3 Earnings Net Income Declines 4.7% Despite 3.2% Revenue Growth

Lowe's Companies (LOW) reported fiscal 2026 Q3 earnings on Nov 26th, 2025, with revenue rising 3.2% year-over-year to $20.81 billion but net income falling 4.7% to $1.62 billion. The results reflect mixed performance, with operational resilience highlighted by 20+ years of consistent quarterly profitability.

Revenue

Home Décor led with $7.80 billion in revenue, followed by Building Products contributing $6.88 billion, while Hardlines added $5.12 billion and Other segments accounted for $1.02 billion. The segment breakdown underscores diversified demand, though the company’s total revenue growth slightly missed estimates.

Earnings/Net Income

Despite a 3.7% decline in EPS to $2.88, the company’s long-term profitability underscores operational resilience.

Price Action

The stock edged up 1.73% in the latest trading day, climbed 5.78% week-to-date, and declined 0.84% month-to-date.

Post-Earnings Price Action Review

The strategy of buying LOW when revenues beat expectations and holding for 30 days resulted in a 263.01% return, significantly outperforming the benchmark return of 84.71%. The strategy’s excess return of 178.30% was accompanied by a CAGR of 29.55% over the backtested period. Notably, the strategy effectively managed risk with a maximum drawdown of 0.00%, a Sharpe ratio of 0.30, and a volatility of 97.21%.

Additional News

Lowe’s faced a $12.5 million fine for lead paint violations tied to contractor safety lapses in 23 states between 2019 and 2021. Additionally, Director Lawrence Simkins purchased 1,000 shares ($231.1K) on Nov 25, 2025, increasing his holdings to 2,000 shares, signaling confidence in the stock.