Lowe’s Cos. used its Q3 earnings call to sharpen its message around where future growth will come from: artificial intelligence, deeper digital engagement from professional contractors, and the integration of Foundation Building Materials (FBM) into its ecommerce and fulfillment network.
President and CEO Marvin Ellison said Lowe’s has embedded generative AI tools across customer-facing and internal digital workflows. The company’s AI-powered virtual assistants — Mylow and Mylow Companion — which it built on OpenAI technology, are handling “nearly 1 million questions per month about everything from product specs to project know-how to the status of a customer order.”
He said the shift in digital behavior is clear.
“When our customers engage with Mylow online, the conversion rate more than doubles,” he said. And when associates use the in-store version, “we’re seeing customer satisfaction scores increase 200 basis points.”
Lowe’s is No. 11 in the Top 2000 Database. The database ranks North America’s largest online retailers by annual ecommerce sales. Digital Commerce 360 projects Lowe’s online sales will reach $12.17 billion in 2025.
How Lowe’s is expanding its AI usage
Lowe’s is also expanding AI into engineering and software operations. Ellison said teams are using generative AI for “development and code review,” generating “double-digit productivity gains.”
He added that Lowe’s was recently recognized by OpenAI for reaching its 100-billion-token usage milestone. Ellison described that as evidence of the “depth and breadth of AI adoption throughout the organization.”
It has scheduled several additional AI initiatives to roll out in 2026, including tools designed to expand digital capabilities for Pro and DIY customers and support Lowe’s participation in “agentic commerce.”
Digital engagement among Pro contractors continues to strengthen. Ellison said the retailer’s Pro extended aisle — which connects associates directly to supplier systems — allows them to “sell directly from their product catalogs with the suppliers fulfilling their orders directly to the job site.”
The capability expands digital assortment, improves inventory depth and boosts large-order fulfillment. He said 75% of Pros remain confident in their job prospects.
Where Lowe’s is using technology, acquisitions to draw in Pros
Joseph McFarland, executive vice president of stores, added that Pros “are taking advantage of our enhanced digital capabilities as they shift to more shopping online.”
Lowe’s closed its acquisition of FBM in October, expanding its interior building materials offering and adding significant digital-fulfillment capacity. Ellison described FBM as “a leading distributor in interior building products” and said the deal “gives us a more comprehensive product portfolio, expands our revenue streams and further enhances our offering to our Pro customers.”
Integration is moving quickly. FBM’s catalog is being linked to the Pro extended aisle, and FBM customers will gain access to Lowe’s tools, safety gear and fasteners. FBM’s 370 locations “strengthen our fulfillment capabilities, especially in high-density urban markets in California, the Northeast and the Midwest, where Lowe’s has less of a physical store presence.”
Early commercial wins include data centers, medical facilities and a luxury high-rise.
Ellison said the combination of AI, digital Pro tools and expanded fulfillment scale positions the company well heading into 2026.
“Achieving this milestone places Lowe’s in an elite tier of companies that are not just experimenting with AI, but operating at a true enterprise scale,” he said.
Lowe’s reported $1.6 billion in net earnings for its fiscal Q3 ended Oct. 31, down 4.7% from $1.7 billion a year earlier. Total sales rose 3.2% to $20.81 billion, compared with $20.17 billion in last year’s third quarter.
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