Company Overview
Lowe’s reports its fiscal Q3 2026 earnings tomorrow, Tuesday, November 19th before market open, at a pivotal moment in the company’s multi-year transformation. The home improvement retailer recently completed its $8.8 billion acquisition of Foundation Building Materials (FBM) in Q4 2025, marking one of the most significant strategic moves in the company’s history and doubling down on its bet that professional contractors—not DIY consumers—represent the future of growth in home improvement.
FBM brings over 370 locations serving 40,000 professional customers across North America, specializing in interior building products like drywall, metal framing, ceiling systems, and insulation. The acquisition generated $6.5 billion in revenue and $635 million in adjusted EBITDA in 2024, with impressive growth rates of 25% revenue CAGR and 30% adjusted EBITDA CAGR from 2019 to 2024. Combined with Lowe’s earlier $1.3 billion acquisition of Artisan Design Group, the company is creating a premier platform to serve large professional contractors with a full suite of interior finishes—from drywall to doors, insulation to flooring, and ceiling systems to cabinets.
Key Technical and Fundamental Drivers
Earnings Tomorrow → Q3 Results Pre-Market Lowe’s reports fiscal Q3 2026 results tomorrow before open, with analysts expecting EPS of $2.99 and evidence of whether the Pro transformation is gaining traction.
Transformative Acquisition → $8.8B FBM Deal The completed Foundation Building Materials acquisition positions Lowe’s to capture significant share of the $250 billion Pro market, with the deal expected to be accretive to EPS in the first full year post-closing.
Pro Business Momentum → Strategic Focus Management has pivoted toward professional contractors as a steadier, more lucrative customer base, with the FBM and Artisan Design acquisitions creating cross-selling opportunities and expanded capabilities.
Analyst Confidence → Buy Rating 19 of 31 analysts rate Lowe’s a “Strong Buy” with consensus price target of $277.10 (representing 21.6% upside), up from 17 “Strong Buy” ratings a month ago, showing increasing bullishness.
Housing Market Positioning → Coiled Spring With mortgage rates beginning to decline and an aging U.S. housing stock requiring renovation, Lowe’s is positioned for when housing “finally unlocks,” as CEO Marvin Ellison describes it.
Market Takeaway
Lowe’s earnings tomorrow could mark an inflection point in how investors view the home improvement giant’s strategic transformation. While DIY demand has remained sluggish amid elevated interest rates and homeowners deferring discretionary projects, the company’s aggressive pivot to professional contractors represents a calculated bet on a more stable, higher-margin revenue stream. The FBM acquisition isn’t just about expanding store count—it’s about fundamentally changing Lowe’s customer mix and average transaction size.
The Pro market opportunity is massive. Professional contractors typically place larger orders, maintain steadier purchasing patterns regardless of economic conditions, and generate higher margins through specialized products and services. By combining FBM’s distribution network with Artisan Design Group’s installation capabilities and Lowe’s existing retail footprint, the company is creating a vertically integrated offering that can serve contractors from initial material procurement through final installation.
Tomorrow’s earnings will provide the first comprehensive look at whether this strategy is working. Investors should watch for several key indicators: Pro business sales growth, comparable store sales trends, gross margin performance as higher-margin Pro sales increase, and management commentary on integration progress with the recent acquisitions. The company has raised its full-year sales guidance to $84.5-$85.5 billion, up from previous expectations, reflecting confidence in the transformation.
The housing market backdrop adds another layer of intrigue. With 30-year mortgage rates gradually declining from their peaks and the U.S. housing stock aging, pent-up demand for renovation and repair work could accelerate when rates fall below 6%. Lowe’s strategic positioning in the Pro market means it’s poised to capture this wave when it arrives. Trading at 18.7x earnings—a modest premium to the specialty retail average but below many growth-oriented peers—Lowe’s valuation suggests the market hasn’t fully priced in the Pro transformation. Tomorrow’s results could be the catalyst that changes that narrative.