Lowe's Companies, Inc. (LOW): Business Model Canvas [Dec-2025 Updated]

You're looking to see how the home improvement giant is positioning itself for the next few years, and honestly, the strategy is crystal clear: it's all about the Pro contractor. After digging into their structure as of late 2025, it's clear the $\mathbf{\$8.8}$ billion Foundation Building Materials (FBM) acquisition and the revamped MyLowe's Pro Rewards program are central to capturing that high-value segment, aiming for a full-year sales outlook between $\mathbf{\$84.5}$ billion and $\mathbf{\$85.5}$ billion across their $\mathbf{1,756}$ stores. If you want the full breakdown of how Lowe's is balancing Pro dominance with DIY convenience, check out the nine building blocks below.

Lowe's Companies, Inc. (LOW) - Canvas Business Model: Key Partnerships

You're mapping out Lowe's Companies, Inc. (LOW) strategy as of late 2025, and the Key Partnerships block is clearly focused on massive scale-up in the Pro segment through strategic acquisitions and high-tech integration. This isn't just about stocking shelves; it's about owning the entire service and material chain for professional builders.

The most significant recent moves involve acquiring specialized service and distribution capabilities. Lowe's Companies, Inc. completed the acquisition of Foundation Building Materials (FBM) for approximately $8.8 billion in cash, announced in late August 2025 and closing in the fourth quarter of 2025. This deal helps accelerate the Total Home strategy to serve large Pro customers within a $250 billion total addressable market. FBM operates over 370 locations across the U.S. and Canada. Lowe's Companies, Inc. also agreed to acquire Artisan Design Group (ADG) for $1.325 billion, financed with cash on hand, with an expected close in the second quarter of 2025. ADG recorded fiscal 2024 revenue of around $1.8 billion and is expected to expand Lowe's total addressable market by approximately $50 billion.

Here's a quick look at the financial scale of these major integration plays:

The push into advanced operational efficiency is cemented by the formal collaboration with technology leaders. Lowe's Companies, Inc. is the first major adopter of the integrated AI operational stack from NVIDIA and Palantir Technologies, formalized in October 2025. This partnership focuses on optimizing supply chain logistics by deploying an integrated AI technology stack, using NVIDIA's accelerated computing power and Palantir's data processing capabilities.

The AI framework integration involves specific technical and operational commitments:

• Lowe's Companies, Inc. is creating a digital replica of its global supply chain for continuous AI optimization.
• The solution combines NVIDIA's GPU-accelerated computing and Nemotron open models with Palantir's Ontology framework.
• NVIDIA stock advanced 3.71% following related collaboration announcements.
• The executive vice president and chief digital and information officer at Lowe's stated AI will be critical to helping Lowe's adapt and optimize quickly amid constantly changing conditions.

Vendor relationships remain critical, especially those recognized for performance in the latest cycle. Lowe's Companies, Inc. named its 2025 Vendor Partners of the Year in October 2025.

Key vendor recognitions include:

• GE Appliances was named Vendor Partner of the Year in both the Appliance and Home Décor categories.
• GE Appliances became the largest single brand overall at Lowe's.
• Resideo received Vendor Partner of the Year for the Building Products division, leveraging an exclusive program for new product innovations.
• Installation service providers are directly bolstered by the ADG acquisition, which coordinates installation through over 3,200 personnel across 18 states.

Finance: draft 13-week cash view by Friday.

Lowe's Companies, Inc. (LOW) - Canvas Business Model: Key Activities

You're looking at the core engine driving Lowe's Companies, Inc. performance as we close out 2025. These aren't just strategic goals; these are the activities generating the numbers you see on the income statement right now.

Driving Pro customer penetration and loyalty (MyLowe's Pro Rewards relaunch)

Focusing on the professional customer remains a huge lever for Lowe's Companies, Inc. The strategic acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG) are central to this push. FBM, for instance, brought in $6.5 billion in pro forma revenue and $635 million in adjusted EBITDA for fiscal year 2024 alone, giving Lowe's Companies, Inc. a much deeper footprint in high-margin professional supply. The goal, set years ago, was to hit 30% Pro customer penetration by 2025, up from 19% in 2019. In the third quarter of 2025, Pro sales showed continued growth, which helped lift the Average Order Value (AOV) by 3.4% year-over-year.

The loyalty ecosystem is being streamlined with the relaunch of MyLowe's Pro Rewards in early 2025. This is designed to be more intuitive for the small-to-medium Pro. Remember, Pros using their MyLowe's Pro Rewards Credit Card get 5% off every day on eligible purchases. It's about making the rewards easier to use, so they stick around.

Executing Perpetual Productivity Improvement (PPI) for $1 billion in savings

Lowe's Companies, Inc. is constantly squeezing efficiency out of its massive operation. The current set of enterprise-wide Perpetual Productivity Improvement or PPI initiatives are targeted to deliver approximately $1 billion in annual cost savings for 2025. This isn't a one-time event; it's a continuous process to offset inflationary pressures and reinvest in growth areas. Honestly, managing costs at this scale requires constant vigilance.

Managing a vast omnichannel retail and supply chain network

The physical footprint remains significant, but the digital channel is accelerating fast. As of October 31, 2025, Lowe's Companies, Inc. operated 1,756 stores, covering 195.8 million square feet of retail selling space. Total sales for the third quarter of 2025 reached $20.8 billion, a 3.2% increase year-over-year from the prior-year quarter's $20.2 billion. The full-year 2025 Total Sales outlook has been raised to $86.0 billion.

Here's a quick look at the scale of operations and recent financial results:

Accelerating online sales growth, which hit 11.4% in Q3 2025

Digital is a clear winner in the Key Activities list. Online sales growth in the third quarter of fiscal 2025 was a strong 11.4% year-over-year. This digital momentum was a key driver, helping push the overall comparable sales up by 0.4% for the quarter. To be fair, this growth is also supported by the company's marketplace launch, which expands assortment without Lowe's Companies, Inc. taking on the inventory risk.

The digital performance is projected to continue:

• Digital Commerce 360 projects Lowe's Companies, Inc. online sales will reach $12.17 billion in 2025.
• Online sales growth of 11.4% in Q3 2025 was attributed to rising web traffic and strong conversion.
• The company is enhancing the experience across lowes.com and its mobile app for both DIY and Pro customers.

Developing and deploying an AI framework for customer experience

Lowe's Companies, Inc. is definitely moving beyond simple experimentation here; they claim to be operating at a 'true enterprise scale' with AI. They developed an internal framework to harness generative AI, partnering with entities like OpenAI and Google. This isn't just back-office stuff; it's directly touching the customer and the associate.

The deployment includes several key assets:

• Mylow virtual advisor: A customer-facing tool using Generative AI for Q&A and product links.
• Mylow Companion: Deployed on approximately 300k associate handheld devices, using voice/text GenAI to elevate associate know-how.
• An AI Governance Committee was established as part of the transformation office to manage model risk, data risk, and brand risk.

Finance: draft 13-week cash view by Friday.

Lowe's Companies, Inc. (LOW) - Canvas Business Model: Key Resources

You're looking at the core assets that power Lowe's Companies, Inc. as of late 2025. These aren't just line items on a balance sheet; they are the engines driving their strategy, especially the pivot toward the professional customer.

Extensive physical store footprint of 1,756 stores as of Q3 2025

The sheer scale of the physical presence remains a massive resource. As of October 31, 2025, Lowe's Companies, Inc. operated exactly 1,756 stores. That physical network translates to 195.8 million square feet of retail selling space. Beyond the main stores, the infrastructure includes over 530 branches and 130 distribution centers, all supporting the flow of goods and services. This footprint allows them to serve approximately 16 million customer transactions a week across the United States.

Here's a quick look at the physical and Pro-related scale following recent major investments:

Integrated Pro-focused assets (FBM's job-site delivery, ADG's installation)

The strategic acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG) are now integrated key resources, specifically targeting the professional segment. The Pro segment now accounts for 40% of total revenue. FBM, acquired for $8.8 billion, brings a strong foothold in regions where Lowe's Companies, Inc. was less present, like California, the Northeast, and the Midwest. ADG, acquired for $1.325 billion, added capabilities like installation services and a network of 132 facilities and 3,200 installers. These Pro operations typically yield higher margins, with segment margins cited in the 20-30% range, often outperforming the DIY segment's 25-28% margins.

Digital platform and AI-powered tools (MyLo Companion, Virtual Advisor)

Lowe's Companies, Inc. is embedding generative AI across its operations. The customer-facing virtual advisor, Mylow, launched in March 2025, built in collaboration with OpenAI. This was quickly followed by the launch of Mylow Companion, an AI tool purpose-built for sales floor associates, deployed chainwide on May 5, 2025, across more than 1,700 stores. This associate tool provides fast access to product details, project advice, and inventory information, marking what the company calls the first at-scale AI assistant deployment for a home-improvement retail workforce. The company also noted reaching a 100 Billion Token Milestone recognized by OpenAI for enterprise-scale AI adoption. Online sales growth in Q3 2025 was strong at 11.4%, showing the digital channel's momentum.

Global supply chain and inventory management systems

Managing inventory across this vast network is a core competency, increasingly powered by technology. Lowe's Companies, Inc. is executing a multi-year effort to reduce its product assortment by about 15% by the end of 2025, focusing on underperforming and duplicative SKUs. This SKU rationalization, supported by AI-driven forecasting and replenishment technology from RELEX Solutions (implemented with Accenture), is showing measurable results. Inventory at the end of the third quarter stood at $17.2 billion, which was down roughly $400 million from the prior year, even after absorbing about $600 million in inventory from recent acquisitions and higher tariffs. Furthermore, the supply chain resilience is bolstered by partnerships with NVIDIA and Palantir to build real-time, data-driven models.

Strong brand equity and a large associate base

The human capital and brand recognition are foundational. Lowe's Companies, Inc. employs approximately 300,000 associates. The brand equity is reflected in the expected full-year 2025 total sales guidance of $86.0 billion. The company's market value, as of August 2, 2024, for stock held by non-affiliates, was $136.4 billion.

You can see the scale of the workforce and financial output here:

• Associate Base Size: Approximately 300,000
• Projected Full Year 2025 Total Sales: $86.0 billion
• Customer Transactions Served Weekly: Approximately 16 million
• Q3 2025 Online Sales Growth: 11.4%

Finance: draft 13-week cash view by Friday.

Lowe's Companies, Inc. (LOW) - Canvas Business Model: Value Propositions

One-stop solution for Pro customers, including bulk materials and credit

Lowe's Companies, Inc. is aggressively positioning itself as the primary supplier for professional customers, aiming for a balanced portfolio that mitigates DIY cyclicality. The Pro segment is noted for carrying higher gross margins, reported at 33.42% in 2025. The company has made significant strategic acquisitions to bolster this segment, including the purchase of Foundation Building Materials (FBM) for $8.8 billion in the third quarter of 2025, and Artisan Design Group (ADG) for $1.32 billion. The FBM acquisition alone adds 370 locations and 40,000 Pro customers to Lowe's ecosystem. The stated goal of the Total Home Strategy was to increase Pro customer penetration from 19% in 2019 to 30% by 2025, a milestone the company indicated it had reached in its latest reported quarter. The Pro segment showed mid-single-digit growth in the second quarter of fiscal 2025 and experienced continued growth in the third quarter of 2025.

The value proposition for Pros is supported by specialized tools and credit offerings, which are central to deepening these relationships.

• The FBM integration is intended to leverage its job-site delivery network and AI-powered estimating tools.
• The MyLowe's Pro Rewards program is designed for small-to-medium Pros, allowing them to earn points from the first dollar spent.

Convenient omnichannel shopping experience for DIYers and Pros

Lowe's Companies, Inc. is focused on creating a seamless experience across its physical stores and digital channels. The DIY loyalty program, MyLowe's Rewards, shows a strong impact on spending, with members outspending non-members by 50%. The company's online sales growth has been a key driver in recent quarters, achieving 11.4% year-over-year growth in the third quarter of 2025. Digital Commerce 360 projects Lowe's online sales to reach $12.17 billion in 2025. The company is also focused on improving in-store fulfillment, such as streamlining the buy online, pick up in store (BOPIS) process.

Here's a look at the recent performance metrics supporting the omnichannel and Pro focus:

Installation and Home Services for complex projects

The expansion of Home Services is a specific initiative within the Total Home Strategy. This offering is showing strong traction, evidenced by double-digit growth reported in the home services category during the third quarter of 2025.

Wide product assortment via the new U.S. home improvement product marketplace

Lowe's Companies, Inc. launched the first product marketplace in the U.S. Home Improvement industry in early 2025. This marketplace allows the company to offer a wider selection of products across all price points without taking on the inventory risk or managing pricing for those third-party items. This is intended to solidify Lowe's position as a one-stop shop for customers' total home improvement needs.

Everyday 5% savings for Pro credit card users

A core component of the loyalty ecosystem is the MyLowe's Pro Rewards Credit Card benefit. Customers using this card receive an everyday 5% savings on eligible purchases. Furthermore, using the MyLowe's Pro Rewards Credit Card results in an automatic upgrade to Platinum Pro status within the loyalty program.

Lowe's Companies, Inc. (LOW) - Canvas Business Model: Customer Relationships

The relationship strategy for Lowe's Companies, Inc. (LOW) centers on creating a unified, rewarding ecosystem for both professional contractors and do-it-yourself (DIY) customers, with a significant focus on accelerating Pro penetration.

Relaunched MyLowe's Pro Rewards program in early 2025

Lowe's Companies, Inc. relaunched its Pro loyalty program as MyLowe's Pro Rewards in early 2025, replacing the previous MVPs Pro Rewards & Partnership Program. This free program is designed to reward Pros from the first dollar spent, unlike some industry programs without special volume thresholds. The Pro segment saw high single-digit growth during the fourth quarter, building on mid-single-digit gains in 2024. Pro sales grew from 19% of sales in 2019 to approximately 30% in 2024. The DIY loyalty program has 30 million members, and these members outspend non-members by 50%.

The value proposition of the MyLowe's Pro Rewards program includes tiered status levels: Gold Pro, Platinum Pro, and Titanium Pro.

Dedicated Pro-desks and Pro-Loader services in-store

Lowe's Companies, Inc. is enhancing in-store service levels to support its Pro customer base. As of August 1, 2025, Lowe's operated 1,753 stores across the United States. The company has added dedicated service levels within its stores as part of its transformed offering for the small-to-mid-sized Pro.

• Dedicated service levels in stores.
• Pro customers who use the Pro Desk are often the high-dollar accounts.
• Pro Power Hours are designated times where specialists focus on making contact in the aisles.

AI-powered virtual advisor and personalized digital recommendations

Lowe's Companies, Inc. deployed generative AI tools across customer-facing workflows. The AI-powered virtual assistants, Mylow and Mylow Companion, built on OpenAI technology, are key relationship drivers. Mylow launched on March 5, 2025.

• Online users engaging with the Mylow virtual assistant convert at more than double the rate of non-users.
• The AI assistants handle nearly 1 million questions per month.
• The associate-facing app, Mylow Companion, was rolled out to all 1,700-plus Lowe's stores in May 2025.
• When associates use the in-store version, customer satisfaction scores increase by 200 basis points.

Trade credit and financing solutions for professional contractors

Lowe's Companies, Inc. plans to leverage trade credit solutions, including those from the acquisition of Foundation Building Materials (FBM), to deepen relationships with professional customers. For the fiscal quarter ending in September of 2025, Lowe's Companies, Inc. reported $10.24B in Trade Creditors. The company is focused on providing Pro Business Solutions like Purchase Authorization within the MyLowe's Pro Rewards program.

Lowe's Companies, Inc. (LOW) - Canvas Business Model: Channels

You're looking at how Lowe's Companies, Inc. gets its products and services into the hands of its diverse customer base as of late 2025. It's a true omnichannel play now, blending massive physical scale with digital sophistication, especially for the Pro customer.

Physical Retail Footprint

The foundation remains the physical retail stores. As of the end of the third quarter of fiscal 2025, ending October 31, 2025, Lowe's operated 1,756 home improvement stores in the United States. This physical network represents approximately 195.8 million square feet of retail selling space. This is the primary touchpoint for millions of weekly transactions; for context, Lowe's was serving approximately 16 million customer transactions a week as of January 31, 2025.

E-commerce Platform (Lowes.com and Mobile App)

The digital channel is accelerating, a key initiative under the 2025 Total Home Strategy. Online sales showed strong momentum in the third quarter of fiscal 2025, growing 11.4% year-over-year. Digital Commerce 360 projects Lowe's total online sales for the full year 2025 will reach $12.17 billion. To be fair, the annual projection is a bit softer than the Q3 growth suggests, with an expectation for the full year 2025 revenue to decline by 0-5% from the 2024 total of $8.2B. Still, the digital experience is getting smarter.

The platform uses technology to guide customers. For example, the Mylow chatbot is integrated into the mobile app to handle troubleshooting, and generative AI personalizes product recommendations on lowes.com.

Here are some specifics from October 2025 transaction data for lowes.com:

Job-site and Bulk Delivery Network (Enhanced by FBM)

Serving the Pro customer is a major focus, with Pro penetration reaching 30% of total sales by 2025. This requires robust fulfillment. The acquisition of Foundation Building Materials (FBM) is part of this, bringing 370 locations into the fold to bolster Pro market capture. Lowe's is actively launching initiatives like the Pro Extended Aisle to improve jobsite delivery capabilities.

The channel integration means sales associates can now access an expanded digital catalog directly interfacing with supplier systems, which includes real-time inventory and pricing, plus supplier services like jobsite and rooftop delivery.

Home Services Installation and Repair Network

Expanding Home Services is explicitly one of the five growth initiatives for the 2025 strategy. Lowe's doesn't perform all services directly; instead, it manages a nationwide network of approved third-party Independent Service PROviders. This model separates selling from administration, letting sales associates focus on the project sale itself.

The channel offers concrete assurances to the customer:

• Installation services are guaranteed by Lowe's limited warranty.
• A standard one-year labor warranty is included with installation services.
• PROviders are expected to be licensed, insured, and background checked.

Extended Rural Offerings in More Stores

To capture customers facing long driving distances, Lowe's is strategically enhancing its physical reach in underserved areas. The plan is to extend rural assortments to 150 more stores. This expansion brings the total number of stores with these specialized rural offerings, which include items like pet, workwear, and utility vehicles, to nearly 500. This move is designed to make the stores a more convenient, one-stop shop for farm and home needs.

Lowe's Companies, Inc. (LOW) - Canvas Business Model: Customer Segments

You're looking at how Lowe's Companies, Inc. structures its customer base as of late 2025. It's a dual focus: the high-volume, steady Pro versus the more discretionary DIY homeowner. The strategy hinges on capturing more of the professional spend, which tends to be stickier and higher ticket.

The Professional segment-contractors, builders, and property managers-is a major focus area. Lowe's has been building momentum here, reporting that Pro penetration reached 30% of sales as of early 2025. This is the segment they are actively trying to deepen relationships with, especially after strategic acquisitions like Foundation Building Materials (FBM) for $8.8 billion. Even when the broader market saw a comparable sales decline of 1.7% in Q1 2025, the Pro segment delivered mid-single-digit comparable sales growth.

The Do-It-Yourself (DIY) homeowner remains critical, though management noted in mid-2025 that many are deferring bigger discretionary projects due to housing market conditions. Still, the DIY loyalty program, MyLowe's Rewards, showed strong adoption, reaching over 30 million members in the first quarter of 2025. That base is valuable; members spend nearly 50% more than nonmembers.

Here's a quick look at the key customer groups and some of the specific data points driving engagement for each:

The focus on the Pro segment is detailed through the revamped loyalty structure. The MyLowe's Pro Rewards program, relaunched in early 2025, is designed to be intuitive for small-to-medium Pros, rewarding them from the first dollar spent.

The benefits structure for these professional customers is quite specific:

• Earn points per $1 spent, redeemable for MyLowe's Money.
• Automatic upgrade to Platinum Pro status with the Pro Rewards Credit Card.
• Volume discounts on eligible quotes of $1,500 or more.
• An instant 20% member paint discount after qualifying paint spend reaches $3,000 annually.

For the rural customer, Lowe's Companies, Inc. is making tangible investments to reduce their travel burden. They are extending farm and home assortments, which include items like workwear and utility vehicles, to an additional 150 stores. This effort aims to bring the rural store count to nearly 500 locations, offering a more convenient, one-stop shop experience.

Overall segment performance in the second quarter of 2025 showed positive momentum, with comparable sales rising 1.1%, driven by solid results in both segments. Finance: draft the Q4 2025 segment revenue split based on the 30% Pro penetration figure by next Tuesday.

Lowe's Companies, Inc. (LOW) - Canvas Business Model: Cost Structure

The Cost Structure for Lowe's Companies, Inc. is heavily weighted toward the cost of the goods it sells, supported by significant ongoing investments in its operational footprint and digital future. This structure reflects a high-volume, low-margin retail model that requires constant capital deployment to maintain competitiveness.

Merchandise cost of goods sold (largest expense) represents the single largest drain on revenue. For the fiscal year ending January 31, 2025, the Cost of Goods Sold was reported at $55.80B. This figure directly correlates with the company's gross margin, which for the three months ended October 31, 2025, stood at 34.19% of net sales. This indicates that for every dollar in sales, roughly 66 cents goes directly to acquiring the product sold.

Store operations and labor costs are substantial, covering the payroll and overhead for the vast physical network. Lowe's Companies, Inc. employed approximately 300,000 associates as of fiscal year 2024, a figure that underpins the operational scale. The broader operating expenses, which include a significant portion for labor, are reflected in the Selling, General, and Administrative (SG&A) line item. For the nine months ended October 31, 2025, SG&A expenses totaled $12,381 Million. The company is actively pursuing productivity initiatives, targeting $1B in annual cost savings across store operations, merchandising, and supply chain to offset wage pressures.

The company maintains a disciplined approach to reinvestment through its capital program. Capital expenditures projected at approximately $2.5 billion for 2025 is the planned outlay for maintaining and improving the existing store base and opening new locations, with plans to open between five to ten new stores in fiscal year 2025. This is a key area of planned spending to support the Total Home strategy.

Financing costs form another predictable expense category. Net interest expense anticipated at approximately $1.3 billion in 2025 is a direct result of the company's debt structure used to finance operations and shareholder returns. For the three months ended October 31, 2025, the net interest expense was $352 Million.

Finally, significant ongoing spending is directed toward future capabilities. Technology and supply chain infrastructure investments are critical differentiators. A concrete example of this commitment is the announced acquisition of a leading technology firm valued at over a billion dollars in April 2025, aimed at bolstering supply chain efficiency and digital customer experience. Furthermore, management has noted making 'incredibly long-term expensive investments in things like IT infrastructure, digital infrastructure, pricing systems, labor management systems, e-commerce, et cetera' to modernize the company.

Here's a quick look at some of the key financial components impacting the cost structure for the 2025 period:

The cost structure is managed through productivity drives, aiming for $1B in annual savings. The company's store base requires continuous capital support, with $2.5B earmarked for CapEx in 2025.

• Store leadership roles filled internally: Over 85% in 2024
• Productivity initiatives expected to yield annual cost savings: $1 Billion
• Capital Expenditures for 2025: Approximately $2.5 Billion
• Net Interest Expense for 2025: Approximately $1.3 Billion
• Number of associates: Approximately 300,000 (FY 2024)

You can see how the fixed and semi-fixed costs, like labor and interest, are managed against the variable cost of inventory. Finance: draft 13-week cash view by Friday.

Lowe's Companies, Inc. (LOW) - Canvas Business Model: Revenue Streams

You're looking at the core ways Lowe's Companies, Inc. brings in money as of late 2025. It's a mix of transactional sales and higher-value service/protection revenue, with a clear strategic lean toward the professional segment.

The overall expectation for the top line is significant. Lowe's Companies, Inc. has updated its total sales forecast for the full fiscal year 2025 to reach $86 billion. This is an upward revision from the earlier guidance range of $84.5 billion to $85.5 billion provided after the first half of the year. For context, the nine months ended October 31, 2025, saw total net sales of $65,701 million.

The revenue streams are segmented across two primary customer types, reflecting the company's Total Home strategy.

Product sales to DIY customers still form a major component, covering everything from seasonal items to home décor. While DIY demand remains important, driven by necessary repair and maintenance projects, the mix is shifting. For instance, in the second quarter of 2025, the company noted strong performance in the DIY segment alongside the Pro segment, with improved weather helping seasonal category sales. The comparable average ticket for all sales in Q2 2025 increased by 2.9%, though transactions decreased by 1.8%.

High-ticket, recurring sales to Pro customers are the strategic growth engine. Lowe's Companies, Inc. has been aggressively driving Pro penetration, having reached 30% Pro penetration by the end of 2024, and this segment continues to outpace DIY. As of mid-2025 analysis, Pro customers accounted for 40% of revenue. The Pro segment's growth is supported by strategic acquisitions like Artisan Design Group (ADG) and the pending Foundation Building Materials (FBM) buyout, positioning the company for larger, planned projects.

Here's a quick look at how the sales performance stacked up in the most recent reported quarter:

Revenue from Home Services and installation fees is a growing stream. The company specifically highlighted double-digit growth in home services during the third quarter of 2025, indicating successful expansion in this area as part of the Total Home Strategy. This complements the core product sales by adding a service component to the transaction.

Rental income is not explicitly detailed in recent public reports, but revenue from extended protection plans is tracked under liabilities. As of the end of the third quarter of 2025, the deferred revenue balance specifically for Lowe's protection plans stood at $1,273 million. This represents a recurring revenue component derived from the sale of these service contracts.

The revenue streams are supported by loyalty programs. Pro customers using the MyLowe's Pro Rewards Credit Card save 5% every day on eligible purchases, which is part of the effort to create a cohesive loyalty ecosystem across customer types.

• Pro segment growth is expected to drive the majority of the revised $86 billion full-year sales forecast.
• Online sales growth of 11.4% in Q3 2025 shows continued acceleration in the digital revenue stream.
• The company is executing on productivity initiatives expected to generate approximately $1 billion in annual cost savings to support margins against these revenue figures.