Lowe's Companies, Inc. stock research
FY2025 Q3
Lowe's Companies (LOW) Gross Margin — Quarter Ended Oct 31, 2025
In the current quarter, revenue and gross profit decreased sequentially but increased year-over-year, while gross margin improved relative to both periods. The relationship shows that cost of revenue declined more sharply than revenue from the prior quarter and grew more slowly than revenue from the year-ago quarter, resulting in a higher gross margin.
Gross margin takeaway
Quarter ended Oct 31, 2025 · FY2025 Q3
In the current quarter, revenue and gross profit decreased sequentially but increased year-over-year, while gross margin improved relative to both periods. The relationship shows that cost of revenue declined more sharply than revenue from the prior quarter and grew more slowly than revenue from the year-ago quarter, resulting in a higher gross margin.
- The strongest observable margin driver is the relative movement of cost of revenue compared to revenue, which led to gross margin expansion in both comparisons.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.2%
Gross profit
$7.1B
Revenue
$20.8B
Cost of revenue
$13.7B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| 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% |
| Oct 31, 2025 | $20.8B | $7.1B | $13.7B | 34.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 1, 2025
+0.4 pts
Year-over-year change
Nov 1, 2024
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative movement of cost of revenue compared to revenue, which led to gross margin expansion in both comparisons.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Monitor the trajectory of cost of revenue relative to revenue, as it is the primary factor influencing gross margin changes.