Lowes Companies Inc 10-K for FY2026

Lowes Companies Inc (LOW)

10-K 2026-03-23 For: 2026-01-30

Added on April 03, 2026

About this 10-K

Lowes Companies Inc filed this 10-K on March 23, 2026, covering the fiscal year ended January 30, 2026 (FY2026).

Headline figures

Fiscal year ended January 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $86.29B; up 3.1% from $83.67B a year earlier
Net income: $6.65B; down 4.4% from net income of $6.96B a year earlier
Diluted EPS: $11.85; down 3.1% from $12.23 a year earlier

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Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.50 per share	LOW	New York Stock Exchange


CLASS						OUTSTANDING AT 3/19/2026
Common Stock, $0.50 par value						560,063,429


Document						Parts Into Which Incorporated
Portions of the Proxy Statement for Lowe’s 2026 Annual Meeting of Shareholders						Part III


			Page No.
Disclosure Regarding Forward-Looking Statements			ii
PART I
	Item 1.	Business	1
	Item 1A.	Risk Factors	8
	Item 1B.	Unresolved Staff Comments	17
	Item 1C.	Cybersecurity	17
	Item 2.	Properties	19
	Item 3.	Legal Proceedings	19
	Item 4.	Mine Safety Disclosures	20
		Information About Our Executive Officers	21

PART II
	Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	22
	Item 6.	Reserved	23
	Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
	Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	32
	Item 8.	Financial Statements and Supplementary Data	33
	Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	70
	Item 9A.	Controls and Procedures	70
	Item 9B.	Other Information	70
	Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	70

PART III
	Item 10.	Directors, Executive Officers and Corporate Governance	71
	Item 11.	Executive Compensation	71
	Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	71
	Item 13.	Certain Relationships and Related Transactions, and Director Independence	71
	Item 14.	Principal Accountant Fees and Services	71

PART IV
	Item 15.	Exhibits and Financial Statement Schedules	72
	Item 16.	Form 10-K Summary	82

		Signatures	83


State	Stores	State	Stores
Alabama	39	Montana	5
Alaska	5	Nebraska	5
Arizona	33	Nevada	17
Arkansas	21	New Hampshire	13
California	112	New Jersey	40
Colorado	29	New Mexico	14
Connecticut	17	New York	70
Delaware	10	North Carolina	116
District of Columbia	1	North Dakota	3
Florida	132	Ohio	84
Georgia	65	Oklahoma	29
Hawaii	4	Oregon	14
Idaho	8	Pennsylvania	83
Illinois	37	Rhode Island	5
Indiana	43	South Carolina	52
Iowa	11	South Dakota	3
Kansas	12	Tennessee	60
Kentucky	42	Texas	151
Louisiana	30	Utah	17
Maine	11	Vermont	2
Maryland	30	Virginia	69
Massachusetts	27	Washington	35
Michigan	45	West Virginia	18
Minnesota	10	Wisconsin	8
Mississippi	24	Wyoming	1
Missouri	47	Total	1,759


☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	1/29/2021		1/28/2022		2/3/2023		2/2/2024		1/31/2025		1/30/2026
Lowe’s	$	100.00	$	142.82	$	133.91	$	138.95	$	167.67	$	175.63
S&P 500	100.00		120.99		114.80		139.85		172.66		200.84
S&P Retail Index	100.00		105.90		89.60		123.16		161.20		164.12


	Total Number of Shares Purchased1	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs2	Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs2, 3
November 1, 2025 - November 28, 2025	175	$	235.09	—	$	10,786,142,988
November 29, 2025 - January 2, 2026	954	248.60		—	10,786,142,988
January 3, 2026 - January 30, 2026	387	274.27		—	10,786,142,988
As of January 30, 2026	1,516	$	253.59	—	$	10,786,142,988


(in millions, except per share data)	2025		2024		2023
Net sales	$	86,286	$	83,674	$	86,377

Net earnings	6,654		6,957		7,726

Diluted earnings per share	$	11.85	$	12.23	$	13.20


Net cash provided by operating activities	$	9,864	$	9,625	$	8,140
Capital expenditures	2,213		1,927		1,964
Repurchases of common stock1	75		3,929		6,334
Cash dividend payments	2,636		2,566		2,531


							Basis Point Increase/(Decrease) in Percentage of Net Sales
	2025		2024		2023		2025 vs. 2024	2024 vs. 2023
Net sales	100.00	%	100.00	%	100.00	%
Gross margin	33.48		33.32		33.39		16	(7)
Expenses:
Selling, general and administrative	19.46		18.74		18.02		72	72
Depreciation and amortization	2.25		2.07		1.99		18	8
Operating income	11.77		12.51		13.38		(74)	(87)
Interest – net	1.63		1.57		1.60		6	(3)

Pre-tax earnings	10.14		10.94		11.78		(80)	(84)
Income tax provision	2.43		2.63		2.83		(20)	(20)
Net earnings	7.71	%	8.31	%	8.95	%	(60)	(64)


Other Metrics	2025			2024			2023
Comparable sales increase/(decrease)1	0.2		%	(2.7)		%	(4.7)		%
Customer transactions (in millions)2,3	780			801			827
Average ticket3	$	106.13		$	102.93		$	102.47


At end of year:
Number of retail stores	1,759			1,748			1,746
Sales floor square feet (in millions)	196			195			195
Average retail store size selling square feet (in thousands)4	112			112			112

Net earnings to average debt and shareholders’ deficit	22.1		%	27.5		%	31.6		%
Return on invested capital5	26.1		%	32.0		%	36.4		%


(In millions)	2025		2024
Interest expense, net of amount capitalized	$	1,471	$	1,445
Amortization of original issue discount and loan costs	25		24
Interest on tax uncertainties	3		3
Interest income	(121)		(159)
Other	28		—
Interest – net	$	1,406	$	1,313


(In millions, except percentage data)	2025			2024			2023
Calculation of Return on Invested Capital
Numerator
Net earnings	$	6,654		$	6,957		$	7,726
Plus:
Interest expense – net	1,406			1,314			1,382
Operating lease interest	179			173			157

Provision for income taxes	2,093			2,196			2,449
Lease adjusted net operating profit	10,332			10,640			11,714
Less:
Income tax adjustment1	2,473			2,552			2,819
Lease adjusted net operating profit after tax	$	7,859		$	8,088		$	8,895

Denominator
Average debt and shareholders’ deficit2	$	30,104		$	25,270		$	24,418
Net earnings to average debt and shareholders’ deficit	22.1		%	27.5		%	31.6		%
Return on invested capital	26.1		%	32.0		%	36.4		%


(In millions, except for interest rate data)	2025		2024
Net proceeds from issuance of debt	$	6,974	$	—
Repayment of debt	$	(2,587)	$	(545)
Net change in commercial paper	$	—	$	—
Maximum commercial paper outstanding at any period	$	500	$	250


(In millions, except per share data and percentage data)	2025			2024
Total cash dividend payments	$	2,636		$	2,566
Dividends paid per share	$	4.70		$	4.50

Dividend payout ratio	40		%	37		%


Debt Ratings	S&P	Moody’s
Commercial Paper	A-2	P-2
Senior Debt	BBB+	Baa1
Outlook	Stable	Stable


Table of Contents
			Page No.
Management’s Report on Internal Control over Financial Reporting			34
Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)			35
Consolidated Statements of Earnings			38
Consolidated Statements of Comprehensive Income			38
Consolidated Balance Sheets			39
Consolidated Statements of Shareholders’ Deficit			40
Consolidated Statements of Cash Flows			41
Notes to Consolidated Financial Statements			42
Note 1: Summary of Significant Accounting Policies			42
Note 2: Acquisitions			48
Note 3: Revenue			49
Note 4: Fair Value Measurements			51
Note 5: Property and Accumulated Depreciation			53
Note 6: Goodwill and Intangible Assets			53
Note 7: Leases			55
Note 8: Debt			56

Note 9: Derivative Instruments			58
Note 10: Shareholders’ Deficit			58
Note 11: Share-Based Payments			60
Note 12: Employee Retirement Plans			63
Note 13: Income Taxes			63
Note 14: Earnings Per Share			65
Note 15: Commitments and Contingencies			66
Note 16: Related Parties			66
Note 17: Other Information			67
Note 18: Segment Information			68
Note 19: Subsequent Event			69


	Fiscal Years Ended
	January 30, 2026				January 31, 2025				February 2, 2024
Current Earnings	Amount		% Sales		Amount		% Sales		Amount		% Sales
Net sales	$	86,286	100.00	%	$	83,674	100.00	%	$	86,377	100.00	%
Cost of sales	57,401		66.52		55,797		66.68		57,533		66.61
Gross margin	28,885		33.48		27,877		33.32		28,844		33.39
Expenses:
Selling, general and administrative	16,791		19.46		15,682		18.74		15,570		18.02
Depreciation and amortization	1,941		2.25		1,729		2.07		1,717		1.99
Operating income	10,153		11.77		10,466		12.51		11,557		13.38
Interest – net	1,406		1.63		1,313		1.57		1,382		1.60

Pre-tax earnings	8,747		10.14		9,153		10.94		10,175		11.78
Income tax provision	2,093		2.43		2,196		2.63		2,449		2.83
Net earnings	$	6,654	7.71	%	$	6,957	8.31	%	$	7,726	8.95	%

Basic earnings per common share	$	11.87			$	12.25			$	13.23
Diluted earnings per common share	$	11.85			$	12.23			$	13.20


	January 30, 2026		January 31, 2025

Assets
Current assets:
Cash and cash equivalents	$	982	$	1,761
Short-term investments	370		372
Receivables - net	1,090		94
Merchandise inventory - net	17,300		17,409
Other current assets	1,213		722
Total current assets	20,955		20,358
Property, less accumulated depreciation	18,362		17,649
Operating lease right-of-use assets	4,303		3,738
Long-term investments	319		277
Deferred income taxes - net	—		244
Goodwill	3,945		311
Intangible assets - net	5,908		277
Other assets	352		248

Total assets	$	54,144	$	43,102

Liabilities and shareholders’ deficit
Current liabilities:

Current maturities of long-term debt	$	2,431	$	2,586
Current operating lease liabilities	713		563
Accounts payable	9,762		9,290
Accrued compensation and employee benefits	1,285		1,008
Deferred revenue	1,477		1,358
Other current liabilities	3,795		3,952
Total current liabilities	19,463		18,757
Long-term debt, excluding current maturities	37,490		32,901
Noncurrent operating lease liabilities	4,043		3,628
Deferred income taxes - net	1,039		—
Deferred revenue - Lowe’s protection plans	1,262		1,268
Other liabilities	764		779
Total liabilities	64,061		57,333

Commitments and contingencies

Shareholders’ deficit:
Preferred stock – $5 par value: Authorized – 5.0 million shares; Issued and outstanding – none	—		—
Common stock – $0.50 par value: Authorized – 5.6 billion shares; Issued and outstanding – 561 million and 560 million, respectively	281		280
Capital in excess of par value	370		—
Accumulated deficit	(10,839)		(14,799)
Accumulated other comprehensive income	271		288
Total shareholders’ deficit	(9,917)		(14,231)
Total liabilities and shareholders’ deficit	$	54,144	$	43,102


	Common Stock			Capital in Excess of Par Value		Accumulated Deficit		Accumulated Other Comprehensive (Loss)/Income		Total
	Shares	Amount
Balance February 3, 2023	601	$	301	$	—	$	(14,862)	$	307	$	(14,254)

Net earnings	—	—		—		7,726		—		7,726
Other comprehensive loss	—	—		—		—		(7)		(7)
Cash dividends declared, $4.35 per share	—	—		—		(2,531)		—		(2,531)
Share-based payment expense	—	—		209		—		—		209
Repurchases of common stock	(30)	(15)		(349)		(5,970)		—		(6,334)
Issuance of common stock under share-based payment plans	3	1		140		—		—		141
Balance February 2, 2024	574	$	287	$	—	$	(15,637)	$	300	$	(15,050)

Net earnings	—	—		—		6,957		—		6,957
Other comprehensive loss	—	—		—		—		(12)		(12)
Cash dividends declared, $4.55 per share	—	—		—		(2,578)		—		(2,578)
Share-based payment expense	—	—		222		—		—		222
Repurchases of common stock	(16)	(8)		(380)		(3,541)		—		(3,929)
Issuance of common stock under share-based payment plans	2	1		158		—		—		159
Balance January 31, 2025	560	$	280	$	—	$	(14,799)	$	288	$	(14,231)

Net earnings	—	—		—		6,654		—		6,654
Other comprehensive loss	—	—		—		—		(17)		(17)
Cash dividends declared, $4.75 per share	—	—		—		(2,664)		—		(2,664)
Share-based payment expense	—	—		247		—		—		247
Repurchases of common stock	—	—		(45)		(30)		—		(75)
Issuance of common stock under share-based payment plans	1	1		148		—		—		149
Other	—	—		20		—		—		20
Balance January 30, 2026	561	$	281	$	370	$	(10,839)	$	271	$	(9,917)


	Years Ended
(In millions)	January 30, 2026		January 31, 2025		February 2, 2024
Financed payment obligations outstanding at the beginning of the year	$	1,511	$	1,356	$	2,257
Payment obligations financed during the year	9,341		9,926		9,573
Financed payment obligations paid during the year	(9,412)		(9,771)		(10,474)
Financed payment obligations outstanding at the end of the year	$	1,440	$	1,511	$	1,356


Cost of Sales						Selling, General and Administrative
n Total cost of products sold, including: - Purchase costs, net of vendor funds; - Freight expenses associated with moving merchandise inventories from vendors to selling locations; - Costs associated with operating the Company’s distribution network, including employee compensation and benefit costs and occupancy costs; - Depreciation of assets associated with the Company’s distribution network; n Costs associated with operating FBM and ADG branch locations; n Costs of installation services provided; n Costs associated with shipping and handling to customers, as well as directly from vendors to customers by third parties; n Depreciation of assets used in delivering product to customers; n Costs associated with inventory shrinkage and markdown; n Costs of services performed under the Lowe’s protection plan.						n Generally, payroll and benefit costs for retail and corporate employees; n Occupancy costs of retail and corporate facilities; n Advertising; n Store environment costs; n Tender costs, including bank charges, costs associated with credit card interchange fees; n Costs associated with self-insured plans, and premium costs for stop-loss coverage and fully insured plans; n Long-lived asset impairment losses, gains/losses on disposal of assets, and exit costs; n Other administrative costs, such as supplies, and travel and entertainment.


	ADG		FBM
(In millions)	June 2, 2025		October 9, 2025
Allocation:
Cash acquired	$	2	$	71
Receivables	202		912
Merchandise inventory	106		485
Other current assets	28		95
Property	36		512
Operating lease right-of-use assets	137		470
Goodwill	366		3,254
Intangible assets	714		5,041
Other assets	35		17
Current operating lease liabilities	(31)		(92)
Accounts payable	(73)		(325)
Accrued compensation and employee benefits	(29)		(77)
Deferred revenue	(22)		(66)
Other current liabilities	(35)		(150)
Noncurrent operating lease liabilities	(95)		(348)
Deferred income taxes, net	(36)		(995)
Other liabilities	(5)		(26)
Net assets acquired	$	1,300	$	8,778


(In millions)	Classification	January 30, 2026		January 31, 2025
Anticipated sales returns	Other current liabilities	$	178	$	167
Right of return assets	Other current assets	109		99


(In millions)	Estimated Depreciable Lives, In Years	January 30, 2026		January 31, 2025
Cost:
Land	N/A	$	6,868	$	6,811
Buildings and building improvements	7-40	18,953		18,386
Equipment	2-15	11,848		10,988

Construction in progress	N/A	712		616
Total cost		38,381		36,801
Accumulated depreciation		(20,019)		(19,152)
Property, less accumulated depreciation		$	18,362	$	17,649


(In millions)	Retail Home Improvement		Other		Consolidated
Goodwill, balance at February 2, 2024	$	311	$	—	$	311
Acquisitions	—		—		—


Goodwill, balance at January 31, 2025	$	311	$	—	$	311
Acquisitions	—		3,634		3,634


Goodwill, balance at January 30, 2026	$	311	$	3,634	$	3,945


(In millions)	Amortization Expense
Fiscal 2026	$	397
Fiscal 2027	329
Fiscal 2028	329
Fiscal 2029	329
Fiscal 2030	323
Thereafter	4,067
Total	$	5,774


(In millions)	Operating Leases1		Finance Leases2		Total
Fiscal 2026	$	873	$	92	$	965
Fiscal 2027	879		64		943
Fiscal 2028	868		59		927
Fiscal 2029	688		47		735
Fiscal 2030	531		37		568
Thereafter	2,054		178		2,232
Total lease payments	5,893		477		6,370
Less: interest3	(1,137)		(86)		(1,223)
Present value of lease liabilities4	$	4,756	$	391	$	5,147


Lease Term and Discount Rate	January 30, 2026		January 31, 2025
Weighted-average remaining lease term (years)
Operating leases	7.81		8.97
Finance leases	8.57		8.68
Weighted-average discount rate
Operating leases	4.43	%	4.28	%
Finance leases	4.85	%	4.89	%


Debt Category (In millions, except percentage data)	Weighted-Average Interest Rate as of January 30, 2026		January 30, 2026		January 31, 2025
Secured debt:
Mortgage notes due through fiscal 20271	6.24	%	$	1	$	1
Unsecured debt:
Notes due through fiscal 2030	3.29	%	12,638		13,700
Notes due fiscal 2031-2035	4.26	%	9,140		5,565
Notes due fiscal 2036-2040	5.74	%	1,054		1,054
Notes due fiscal 2041-2045	3.88	%	2,456		2,454
Notes due fiscal 2046-2050	3.78	%	5,574		5,572
Notes due fiscal 2051-2055	4.86	%	3,954		3,953

Notes due fiscal 2061-2065	5.19	%	2,714		2,713
2025 Term Loan	4.88	%	1,999		—
Finance lease obligations due through fiscal 2043			391		475

Total long-term debt			39,921		35,487
Less: current maturities			(2,431)		(2,586)
Long-term debt, excluding current maturities			$	37,490	$	32,901


(In millions)	Principal
Fiscal 2026	$	2,350
Fiscal 2027	3,018
Fiscal 2028	5,005
Fiscal 2029	1,811
Fiscal 2030	2,500
Thereafter	25,135
Total	$	39,819


Principal Amount (in millions)		Maturity Date	Interest Rate	Discount (in millions)
$	650	October 2027	3.950%	$	2
$	750	October 2028	4.000%	$	3
$	1,100	March 2031	4.250%	$	6
$	1,300	October 2032	4.500%	$	8
$	1,200	October 2035	4.850%	$	8


Agreement Execution Date	ASR Settlement Date	ASR Agreement Amount		Initial Shares Delivered	Additional Shares Delivered at Settlement	Total Shares Delivered




Q1 2023	Q1 2023	$	750	3.1	0.7	3.8
Q2 2023	Q2 2023	$	1,000	3.9	0.7	4.6
Q3 2023	Q3 2023	$	1,500	5.3	1.7	7.0
Q1 2024	Q1 2024	$	325	1.1	0.2	1.3
Q2 2024	Q2 2024	$	375	1.4	0.3	1.7
Q3 2024	Q3 2024	$	400	1.3	0.2	1.5
Q4 2024	Q4 2024	$	400	1.2	0.4	1.6


(in thousands, except per share and years data)	Shares	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Term	Aggregate Intrinsic Value
Outstanding as of January 31, 2025	1,625	$	150.23
Granted	138	234.01
Canceled, forfeited or expired	(4)	200.43
Exercised	(181)	115.75
Outstanding as of January 30, 2026	1,578	$	161.38	5.42	$	166,736
Vested and expected to vest as of January 30, 20261	1,572	$	161.09	5.41	$	166,533
Exercisable as of January 30, 2026	1,278	$	145.59	4.73	$	155,227