Lowe's Companies (LOW) Earnings Date & Reports

Key Takeaways

• Total sales rose 8.3% year over year to $25.96 billion, helped by recent acquisitions.
• GAAP diluted earnings per share (EPS) held flat at $4.27, while adjusted diluted EPS climbed 1.6% to $4.40.
• Comparable sales increased 0.2%, marking a fifth consecutive quarter of positive comparable sales.
• Adjusted EPS topped analyst estimates, but revenue came in slightly below consensus expectations.
• Management lowered its full-year fiscal 2026 outlook to the bottom end of its prior guidance ranges.
• Results included a roughly $0.11 per share benefit from IEEPA tariff refunds.

Earnings Context and Why It Matters

Lowe's second-quarter fiscal 2026 report offers an important read on the health of U.S. home improvement spending at a time when consumers remain cautious about larger discretionary projects. As the second-largest home improvement retailer, Lowe's results serve as a barometer for housing-related demand, professional contractor activity, and broader retail resilience. Investors were watching closely to see whether sustained strength in the Pro (professional) customer segment, online sales, and home services could offset persistent softness in do-it-yourself (DIY) spending. The updated full-year guidance also signals how management views the remainder of the year amid higher interest rates, inflation, and uneven demand trends.

Reported Results

For the quarter ended July 31, 2026, Lowe's reported total sales of $25.96 billion, an 8.3% increase from $23.96 billion in the prior-year period. Comparable sales edged up 0.2%, extending the company's streak to five consecutive quarters of positive comparable sales. Net earnings were $2.4 billion, with diluted EPS of $4.27, unchanged from a year earlier. Adjusted diluted EPS, which excludes $96 million in pre-tax acquisition-related intangible asset amortization tied to the Foundation Building Materials (FBM) and Artisan Design Group (ADG) acquisitions, rose 1.6% to $4.40.

Adjusted EPS came in above the consensus estimate of roughly $4.22, while revenue fell modestly short of the approximately $26.16 billion analysts had expected. Growth was driven by the Pro, online, and home services categories, including a 15.7% jump in online sales, while discretionary DIY demand remained under pressure. The quarter also included an $0.11 per share benefit from tariff refunds related to the IEEPA (International Emergency Economic Powers Act).

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Market Reaction and Investor Sentiment

Shares of Lowe's declined roughly 2% to 3% in the wake of the report, as investors weighed the earnings beat against the softer revenue result and the lowered full-year outlook. The market's reaction reflected concern that weaker discretionary DIY spending and heightened promotional activity in seasonal categories could continue to pressure results into the second half. Management described the recent competitive pricing as transitory rather than a structural shift, but the guidance reduction to the low end of prior ranges tempered near-term optimism. Sentiment remained cautious, echoing a broader theme across the home improvement sector, where shoppers have been slow to re-engage with major renovation projects.

Forward Outlook and Key Factors to Monitor

Lowe's updated fiscal 2026 guidance reflects a more conservative stance. The company now expects total sales of approximately $92.0 billion, down from a prior range of $92.0 billion to $94.0 billion, and comparable sales roughly flat versus prior year, compared with a previous forecast of flat to up 2%. Adjusted operating margin is now expected to be approximately 11.6%, and adjusted diluted EPS is forecast at about $12.25, near the bottom of the earlier range. Capital expenditures are still expected to total up to $2.5 billion.

Looking ahead, investors will be monitoring several factors. First, the trajectory of DIY demand remains a key swing factor, given continued pressure from inflation, interest rates, and cautious household budgets. Second, the durability of growth in the Pro, online, and home services segments will be important, as these areas have been the primary drivers of recent comparable sales gains. Third, the integration and contribution of the FBM and ADG acquisitions will be watched for their impact on both revenue and margins.

Margin trends also merit attention, as gross margin declined in the quarter, partly due to acquisition dilution and elevated fuel and transportation costs. Finally, any additional tariff refunds in the second half, or the absence of them, could influence results, since the current outlook excludes potential future refunds. For the third quarter, management expects adjusted diluted EPS roughly 7% below the prior-year adjusted result, signaling that near-term headwinds may persist before any broader recovery in discretionary home improvement demand takes hold.

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