v3.26.1
Segment Information
 6 Months Ended
Jul. 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s operations include one reportable operating segment, Retail Home Improvement, and the chief operating decision maker (CODM) is the Chairman, President, and Chief Executive Officer. Our operating segments reflect the way in which internally reported financial information is regularly reviewed by the CODM who has the ultimate decision-making authority for resource allocation and assessing performance of our segments.

•Retail Home Improvement Reportable Segment - We are engaged in retail operations that sell a wide assortment of home décor, hardlines, and building products both in stores and online throughout the United States. In addition, we have specialists on-site to provide services, including home improvement installation services, and tool and equipment rental.

•Other - As discussed in Note 2, in 2025, Lowe’s acquired FBM, a leading distributor of interior building products, and ADG, a nationwide provider of design, distribution and installation services for interior surface finishes. FBM operations are organized into two lines of business and represent two operating segments, Ceilings and Wall Systems and Commercial Doors and Hardware. ADG is deemed to be a separate operating segment, referred to as Interior Finishes. These three operating segments do not meet the thresholds prescribed under ASC Topic 280 to be deemed a reportable segment, therefore, results from these operating segments are presented in “Other”.

The CODM regularly reviews operating income as the measure of each operating segment’s profit or loss, as well as significant segment expenses of our Retail Home Improvement segment to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Corporate expenses are allocated to the individual operating segments. The CODM also uses these measures in monitoring plan versus actual results. The CODM does not review segment assets at a different asset level or category than those disclosed in the consolidated balance sheets.
The following table presents the Company’s operating income results for its Retail Home Improvement reportable segment, including significant segment expenses:
Three Months EndedSix Months Ended
July 31, 2026August 1, 2025July 31, 2026August 1, 2025
(In millions, except percentage data)Amount% SalesAmount% SalesAmount% SalesAmount% Sales
Net Sales$24,015 100.00 %$23,821 100.00 %$45,339 100.00 %$44,750 100.00 %
Less:
Cost of sales15,775 65.69 15,751 66.12 29,855 65.85 29,694 66.36 
Expenses:
Employee compensation and benefits2,843 11.84 2,815 11.82 5,690 12.56 5,628 12.58 
Occupancy and facility costs478 1.99 471 1.98 970 2.14 940 2.10 
Advertising269 1.12 249 1.05 477 1.05 448 1.00 
Other segment items1
632 2.62 612 2.56 1,278 2.81 1,177 2.63 
Selling, general and administrative:4,222 17.57 4,147 17.41 8,415 18.56 8,19318.31 
Depreciation and amortization472 1.97 447 1.88 938 2.07 8921.99 
Operating income$3,546 14.77 %$3,476 14.59 %$6,131 13.52 %$5,971 13.34 %
1    Other segment items primarily include financial services costs, technology service costs, insurance costs, impairment costs, and store environment initiative and display costs.

The following tables present a reconciliation of our Retail Home Improvement results to our consolidated totals for the three and six months ended July 31, 2026 and August 1, 2025. Prior-period segment information has been recast to conform to the Company’s current-period segment reporting structure:

Three Months Ended
July 31, 2026
Retail Home ImprovementOtherConsolidated
(In millions, except percentage data)Amount% SalesAmount% SalesAmount% Sales
Net sales$24,015 100.00 %$1,941 100.00 %$25,956 100.00 %
Operating income3,546 14.77 3 0.11 3,549 13.67 
Interest – net374 1.44 
Pre-tax earnings3,175 12.23 
Income tax provision776 2.99 
Net earnings$2,399 9.24 %

Three Months Ended
August 1, 2025
Retail Home ImprovementOtherConsolidated
(In millions, except percentage data)Amount% SalesAmount% SalesAmount% Sales
Net sales$23,821 100.00 %$138 100.00 %$23,959 100.00 %
Operating income3,476 14.59 (7)(5.61)3,469 14.48 
Interest – net313 1.31 
Pre-tax earnings3,156 13.17 
Income tax provision758 3.16 
Net earnings$2,398 10.01 %
Six Months Ended
July 31, 2026
Retail Home ImprovementOtherConsolidated
(In millions, except percentage data)Amount% SalesAmount% SalesAmount% Sales
Net sales$45,339 100.00 %$3,695 100.00 %$49,034 100.00 %
Operating income6,131 13.52 (28)(0.79)6,103 12.45 
Interest – net773 1.58 
Pre-tax earnings5,330 10.87 
Income tax provision1,303 2.66 
Net earnings$4,027 8.21 %

Six Months Ended
August 1, 2025
Retail Home ImprovementOtherConsolidated
(In millions, except percentage data)Amount% SalesAmount% SalesAmount% Sales
Net sales$44,750 100.00 %$138 100.00 %$44,888 100.00 %
Operating income5,971 13.34 (7)(5.61)5,964 13.29 
Interest – net650 1.45 
Pre-tax earnings5,314 11.84 
Income tax provision1,276 2.84 
Net earnings$4,038 9.00 %