Lowe's Companies, Inc. stock research
FY2025 Q2
Lowe's Companies (LOW) Gross Margin — Quarter Ended Aug 1, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly, reflecting a favorable relationship between revenue growth and cost of revenue.
Gross margin takeaway
Quarter ended Aug 1, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly, reflecting a favorable relationship between revenue growth and cost of revenue.
- The strongest observable driver of the gross margin change is the difference in growth rates between revenue and cost of revenue. Revenue grew at a faster pace than cost of revenue when compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved, though the change was smaller.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.8%
Gross profit
$8.1B
Revenue
$24.0B
Cost of revenue
$15.9B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+0.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Nov 1, 2024 | $20.2B | $6.8B | $13.4B | 33.7% |
| Jan 31, 2025 | $18.6B | $6.1B | $12.5B | 32.9% |
| May 2, 2025 | $20.9B | $7.0B | $13.9B | 33.4% |
| Aug 1, 2025 | $24.0B | $8.1B | $15.9B | 33.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 2, 2025
+0.4 pts
Year-over-year change
Aug 2, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change is the difference in growth rates between revenue and cost of revenue. Revenue grew at a faster pace than cost of revenue when compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved, though the change was smaller.
Monitor the relationship between revenue and cost of revenue in upcoming quarters to see if the favorable trend continues.