Lowe's Companies Inc. reported improved sales for the third quarter of 2025, though its net earnings saw a decline. 

Total sales for the quarter were $20.8 billion, compared to $20.2 billion in the prior-year quarter. Comparable sales for the quarter increased 0.4%, driven by 11.4% online sales growth, double-digit growth in home services and continued growth in Pro sales.

Net earnings were reported at $1.6 billion and diluted earnings per share of $2.88 for the quarter ended Oct. 31, 2025, compared to diluted earnings per share of $2.99 in the third quarter of 2024.

Marvin Ellison, Lowe's chairman, president and CEO, said during the company's Q3 earnings call that sales increased year-over-year despite a roughly 100 basis points headwind related to Hurricanes Helene and Milton. This year's hurricane season has been quiet compared to the past few years.

"These results reflect continued operational discipline and strong execution across our perpetual productivity improvement or PPI initiatives. And although sales results continue to be impacted by softer demand within an uncertain macro environment, we're encouraged to see improvement in DIY customer engagement and discretionary projects across many areas of the home," Ellison said.

During the third quarter, the company recognized $129 million in pre-tax expenses associated with the acquisitions of Foundation Building Materials (FBM) and Artisan Design Group. The company invested $8.8 billion for the acquisition of FBM and paid $673 million in dividends to acquire the distributor in interior building products, which includes drywall, metal framing, insulation and ceiling systems.

"With the closing of the FBM acquisition last month, we look forward to enhancing our offering to Pro customers and creating more sustainable, long-term sales and profit expansion for the company," Ellison said.

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Like others in the professional world, the company is employing generative AI to improve operations and sales. Its virtual assistants, Mylow and Mylow companion, are built on an open AI platform and answer nearly 1 million questions per month about product specs, project details and order statuses. Ellison said when customers engage with Mylow online, the conversion rate more than doubles. This, he says, is "clear evidence" that AI is simplifying decision-making and driving sales.

"When our associates use Mylow companion to help customers shopping in our stores, we're seeing customer satisfaction scores increase 200 basis points," he said.

The retailer's technology roadmap includes several additional AI initiatives to drive further enhancements to the Pro and DIY customer experience, both in-store and online. This includes participation in Agentic commerce.

For the full-year outlook, Lowe's anticipates comparable sales to be flat as compared to the prior year (previously flat to up +1%). Total sales are expected to be $86 billion. Even so, Lowe's executives were optimistic during the earnings call.

"We've got just a lot of strength going on right now that we'll carry into next week with Black Friday," said William Boltz, executive vice president of merchandising, during the Nov. 19 earnings call. "So we're excited about how things are progressing."

As of Oct. 31, 2025, Lowe's operated 1,756 stores, representing 195.8 million square feet of retail selling space.