Lowe's Companies, Inc. (LOW) Earnings
Lowe's Companies, Inc. is expected to report next earnings on November 18, 2026 (in NaN days), with a consensus EPS estimate of $2.94. LOW has beaten EPS estimates in 11 of its last 12 reported quarters (average surprise +2.8% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 19, 2026 | $4.23 | $4.40 | +4.1% | $26.0B | -0.5% |
| May 20, 2026 | $2.97 | $3.03 | +2.0% | $23.1B | +0.7% |
| Feb 25, 2026 | $1.94 | $1.98 | +2.0% | $20.6B | +1.6% |
| Nov 19, 2025 | $2.97 | $3.06 | +3.1% | $20.8B | +0.3% |
| Aug 20, 2025 | $4.23 | $4.33 | +2.3% | $24.0B | +0.3% |
| May 21, 2025 | $2.88 | $2.92 | +1.4% | $20.9B | +0.0% |
| Feb 26, 2025 | $1.83 | $1.93 | +5.2% | $18.6B | +1.7% |
| Nov 19, 2024 | $2.81 | $2.89 | +3.0% | $20.2B | +1.5% |
| Aug 20, 2024 | $3.97 | $4.10 | +3.2% | $23.6B | -0.9% |
| May 21, 2024 | $2.95 | $3.06 | +3.7% | $21.4B | +1.4% |
| Feb 27, 2024 | $1.69 | $1.77 | +4.5% | $18.6B | +0.0% |
| Nov 21, 2023 | $3.04 | $3.06 | +0.7% | $20.5B | +9.1% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 19, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Total Home Strategy Execution - Continued momentum in the total home strategy, with strength in pro, online, and home services offsetting soft discretionary DIY demand and Q2 headwinds including poor Memorial Day weekend weather and late-quarter competitive pricing pressure. - Integration of FBM and ADG acquisitions is progressing, positioning the company to gain long-term share with larger pro customers and capture more planned pro spending. ### Digital and AI Innovation - The AI agent Milo, which powers both customer-facing online tools and the internal Associate AI Companion, has supported over 25 million questions; online customers who use Milo convert at 3x the rate of non-users, driving strong purchase conversion. - Investments in tailored digital experiences, visualization capabilities, and the online marketplace have driven double-digit online sales growth and higher customer conversion. ### Merchandising and Assortment Updates - Exclusive new product launches include the full rollout of Cree light bulbs in the home center channel, the GE Profile smart refrigerator with built-in grocery list scanning, and the upcoming national rollout of Traeger grills. - Expanding premium assortments for appliances (online) and outdoor furniture (online and in year-round markets) to serve customers across all price points, from value-focused to premium buyers. - Rolling out expanded pet and workwear assortments to all stores by year-end as part of a space productivity initiative to improve sales per square foot. ### Productivity and Operational Efficiency - Perpetual Productivity Improvement (PPI) initiatives are delivering consistent savings: examples include self-watering plant tables that reduce associate routine work and plant waste, and a new centralized communications portal for store associates that cuts complexity and delivers payroll productivity gains. - Upcoming rollouts of Freight Flow 3.0 and full-shelf replenishment will improve in-stock levels, inventory accuracy, and labor efficiency by simplifying the product flow from truck to shelf. ### Loyalty Program Growth - MyLowe's Rewards and MyLowe's Pro Rewards have over 30 million members; members shop more frequently and spend more per visit than non-members, with benefits including free same-day delivery and exclusive member offers.
Guidance
- Management updated full-year 2026 guidance to the bottom end of the prior range, expecting total sales of ~$92 billion with roughly flat comparable sales, adjusted operating margin of ~11.6%, and adjusted diluted EPS of ~$12.25. - Capital expenditures are expected to remain capped at $2.5 billion for the full year, unchanged from prior guidance. - The full-year outlook includes the Q2 2026 tariff benefit, but excludes any potential additional tariff refunds in the second half of 2026. It also reflects continued sustained demand pressure on FBM and ADG from the soft new home construction market. - Third quarter 2026 comparable sales are expected to align with the full-year flat outlook, with adjusted diluted EPS expected to be ~7% lower than prior year third quarter adjusted diluted EPS. - The company remains on track to hit its 2.75x adjusted debt to EBITDA leverage target by mid-2027.
Segment performance
Lowe's is a home improvement retailer with performance tracked across core customer and merchandise segments: 1. **Overall Company**: Total Q2 2026 sales hit $26 billion, up 8.3% year-over-year, with comparable sales up 0.2%. GAAP diluted EPS was $4.27, and adjusted diluted EPS was $4.40, which beat expectations even after excluding an 11-cent benefit from IEPA tariff refunds. Gross margin was 33% (down 80 bps year-over-year adjusted), and SG&A was 17.2% of sales (leveraged 14 bps year-over-year). Inventory totaled $17.7 billion, up $1.4 billion year-over-year. 2. **Pro Customer Segment**: Delivered consecutive quarters of growth, driven by small and medium-sized pro customers. Acquired Foundation Building Materials (FBM) and Artisan Design Group (ADG) integration is progressing: FBM has 55% exposure to resilient commercial construction, while 45% of FBM and 100% of ADG are exposed to soft residential construction demand. 3. **Online Segment**: Grew sales 15.7% year-over-year, with strong conversion driven by improved digital experiences, the AI chatbot Milo, expanded fulfillment options, and a growing online marketplace. 4. **Home Services**: Delivered sustained growth, especially for replacement projects, with improved conversion, faster cycle times, and higher customer satisfaction. 5. **Merchandise Divisions**: 9 out of 13 divisions posted positive comparable sales: - Building products: Positive comps across rough plumbing, millwork, electrical, and lumber, led by repair and maintenance demand. - Home decor: Positive comps for appliances (7th straight quarter of growth), paint, and kitchen and bath categories. - Hard lines: Positive comps for lawn and garden, tools, and hardware.
Risks & headwinds
- Near-term macro risks: Elevated fuel, transportation, and input costs; broader economic uncertainty leading to cautious consumer discretionary spending; and persistent pressure on DIY discretionary demand, particularly for large-ticket projects. - Competitive risks: Heightened late-Q2 pricing pressure from competitors using tariff refund dollars to cut prices on seasonal categories, which negatively impacted Lowe's July comparable sales. - Housing and construction risks: Elevated mortgage rates continue to suppress new home construction activity, creating near-term demand pressure for FBM and ADG, which have exposure to the residential construction end market. - Weather-related risks: Unfavorable weather (including poor Memorial Day weekend weather and drought conditions across parts of the U.S.) negatively impacted sales for weather-sensitive seasonal and outdoor categories. - Uncertainty around future tariff refunds: The timing and size of additional potential IEPA tariff refunds remain uncertain, so they are not included in the current full-year guidance.
Analyst Q&A
Q: How did Q2 2026 late-quarter competitive pricing pressure emerge, and what plans does Lowe's have to combat this pressure in the second half of the year? /
A: Heightened competitive pressure was concentrated in July, with competitors using tariff refund dollars to cut prices aggressively in seasonal categories including grills, patio, and live goods to drive unit sales. Lowe's will focus on driving a successful Labor Day promotional event, expanding premium product assortments in high-growth categories like appliances, rolling out new brands including Traeger for grills and Dow Tile for flooring, and leaning into exclusive offers for loyalty program members. Management remains committed to operational and margin discipline even amid competitive pressure, and expects the aggressive pricing to be transitory.
Q: How have FBM and ADG performed in Q2, and is the guidance revision driven by lower expected growth for these two acquired businesses? /
A: FBM and ADG are facing more pronounced demand pressure from the ongoing slowdown in residential construction, where activity is at multi-year lows. ADG is 100% exposed to residential construction, while FBM is 45% exposed with 55% of its business in resilient commercial construction. The full-year guidance does reflect continued sustained near-term pressure on FBM and ADG's top and bottom lines from the soft residential construction market, though the businesses are capturing expected integration benefits and pursuing tuck-in acquisition opportunities to scale long-term.
Q: Is the slower demand environment changing Lowe's capital allocation priorities between DIY and pro customer segments? /
A: Management maintains a long-term outlook for capital allocation and does not plan to shift investment priorities due to the current cyclical housing slowdown. Industry analysis estimates $20-50 billion in pent-up deferred home improvement demand, and the current environment will not last forever. Investments in FBM and ADG position Lowe's to capture long-term share when residential construction recovers, and management continues to allocate capital to opportunities that deliver strong risk-adjusted returns for shareholders, maintaining the company's industry-leading return on invested capital.
Q: What is driving the strong 15.7% online sales growth, and what explains the overall 2.1% decline in comparable transactions? /
A: Online growth is driven by improved digital experiences, expanded fulfillment options including free same-day delivery, strong adoption of the AI chatbot Milo that triples conversion for engaged users, and a growing online marketplace that offers expanded pricing and assortment options for both value and premium customers. The overall comparable transaction decline is almost entirely centered on DIY, specifically in weather-sensitive outdoor and seasonal categories that were impacted by poor Memorial Day weekend weather, particularly across southern U.S. geographies. Pro transactions remain strong.