Earnings Per Share
The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company’s participating securities consist of share-based payment awards that contain a non-forfeitable right to receive dividends and, therefore, are considered to participate in undistributed earnings with common shareholders.
Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares as of the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table reconciles earnings per common share for 2025, 2024, and 2023:
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| Years Ended |
| (In millions, except per share data) | January 30, 2026 | | January 31, 2025 | | February 2, 2024 |
| Basic earnings per common share: | | | | | |
| Net earnings attributable to Lowe's Companies, Inc. | $ | 6,654 | | | $ | 6,957 | | | $ | 7,726 | |
| Less: Net earnings allocable to participating securities | (18) | | | (17) | | | (20) | |
| | | | | |
| Net earnings allocable to common shares, basic | $ | 6,636 | | | $ | 6,940 | | | $ | 7,706 | |
| Weighted-average common shares outstanding | 559 | | | 567 | | | 582 | |
| Basic earnings per common share | $ | 11.87 | | | $ | 12.25 | | | $ | 13.23 | |
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| Years Ended |
| (In millions, except per share data) | January 30, 2026 | | January 31, 2025 | | February 2, 2024 |
| Diluted earnings per common share: | | | | | |
| Net earnings attributable to Lowe's Companies, Inc. | $ | 6,654 | | | $ | 6,957 | | | $ | 7,726 | |
| Less: Net earnings allocable to participating securities | (18) | | | (17) | | | (20) | |
| | | | | |
| Net earnings allocable to common shares, diluted | $ | 6,636 | | | $ | 6,940 | | | $ | 7,706 | |
| Weighted-average common shares outstanding | 559 | | | 567 | | | 582 | |
| Dilutive effect of non-participating share-based awards | 1 | | | 1 | | | 2 | |
| Weighted-average common shares, as adjusted | 560 | | | 568 | | | 584 | |
| Diluted earnings per common share | $ | 11.85 | | | $ | 12.23 | | | $ | 13.20 | |
| | | | | |
| Anti-dilutive securities excluded from diluted weighted-average common shares | 0.2 | | | 0.1 | | | 0.5 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.