Lowe’s delivered third-quarter results that met Wall Street’s revenue expectations and exceeded non-GAAP profit forecasts, prompting a positive market reaction. Management attributed the performance to operational discipline, growth in its professional (Pro) customer segment, and expanding digital sales. CEO Marvin Ellison highlighted, “continued operational discipline and strong execution across our perpetual productivity improvement initiatives.” The company also benefited from its Total Home strategy, which drove improvements in home services and store productivity, while recent acquisitions started to contribute to results.

Is now the time to buy LOW? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Lowe's’s Q3 Earnings Call

• Christopher Horvers (JPMorgan): asked about the trend in business and prospects for accelerating comps in 2026. CEO Marvin Ellison and CFO Brandon Sink pointed to early signs of improvement and said more detail will be provided in February, citing current operational discipline and Pro momentum.
• Zach Fadem (Wells Fargo): inquired whether improved Pro sentiment is a leading indicator for business growth. Ellison emphasized the stability of small to medium Pro customers, while EVP Joe McFarland described ongoing investments in loyalty and fulfillment as supporting future share gains.
• Simeon Gutman (Morgan Stanley): questioned the impact of prolonged housing market stagnation. Ellison and Sink described the “lock-in effect” of low mortgage rates and high homeowner equity as supportive of future project demand, especially if rates decline.
• Kate McShane (Goldman Sachs): asked about the early performance of Lowe’s online marketplace and its scalability. Management noted strong initial adoption and seller quality, with further expansion expected to complement in-store offerings and drive margin benefits over time.
• Seth Sigman (Barclays): pressed for details on sustainability of gross margin gains. Sink pointed to inventory rationalization and reduced storm-related pressures as current drivers, with future margin dynamics dependent on integration, tariffs, and ongoing PPI initiatives.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be closely monitoring (1) the pace and success of FBM and ADG integration, including cross-selling and margin synergies, (2) the trajectory of digital and AI-driven productivity initiatives, and (3) evolving consumer demand in home improvement as interest rates and home equity lending trends shift. Execution in these areas will be critical for Lowe’s ability to sustain growth and improve profitability.

Lowe's currently trades at $238.60, up from $219.57 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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