LO

Lowe's Companies, Inc. stock research

Jan 30, 2026

FY2025 Q4

Lowe's Companies (LOW) Gross Margin — Quarter Ended Jan 30, 2026

In the current quarter, revenue decreased compared to the prior quarter but increased relative to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue rose both sequentially and year-over-year, resulting in a gross margin that weakened from both the prior quarter and the year-ago period.

Gross margin takeaway

Quarter ended Jan 30, 2026 · FY2025 Q4

In the current quarter, revenue decreased compared to the prior quarter but increased relative to the same quarter last year. Gross profit followed a similar pattern, while cost of revenue rose both sequentially and year-over-year, resulting in a gross margin that weakened from both the prior quarter and the year-ago period.

  • The primary observable driver of the margin change was the increase in cost of revenue relative to revenue. Cost of revenue grew at a faster pace than revenue when compared to both the preceding quarter and the year-ago quarter.
  • Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was also slightly lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

32.5%

Gross profit

$6.7B

Revenue

$20.6B

Cost of revenue

$13.9B

Quarter-over-quarter change

-1.7 pts

Year-over-year change

-0.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
May 2, 2025$20.9B$7.0B$13.9B33.4%
Aug 1, 2025$24.0B$8.1B$15.9B33.8%
Oct 31, 2025$20.8B$7.1B$13.7B34.2%
Jan 30, 2026$20.6B$6.7B$13.9B32.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Oct 31, 2025

-1.7 pts

Year-over-year change

Jan 31, 2025

-0.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary observable driver of the margin change was the increase in cost of revenue relative to revenue. Cost of revenue grew at a faster pace than revenue when compared to both the preceding quarter and the year-ago quarter.

Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was also slightly lower.

Monitor the trajectory of cost of revenue in relation to revenue in upcoming periods.