12:00 PM EDT, 08/20/2025 (MT Newswires) -- Lowe's (LOW) reported Q2 gross margins rose 30 basis points to 33.8% from a year earlier, helping drive an earnings beat, Truist Securities said Wednesday in a note.

Adjusted EBIT margins of 14.7% topped Truist's estimate by 20 basis points, and adjusted earnings of $4.33 a share exceeded the analyst's estimate of $4.21, according to the note. Same-store sales rose 1.1% versus the Truist estimate of 1%.

"While we have questioned whether Lowe's could throw itself into the growing battle for building distribution assets," the company agreed to buy Foundation Building Materials for $8.8 billion, the note said.

Lowe may echo Home Depot's ( HD ) recent comments on navigating tariffs without substantial price increases, the note said.

Trust maintained its buy rating on Lowe's and kept its price target at $264.

Lowe's shares rose 0.5% in recent Wednesday trading.

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