Lowe's Q2 EPS Beats, But Guidance Cut Signals Softer Second Half
LOW is trading near its 52-week low of $199.4 (5.3% above the low).
Summary
Lowe's Q2 adjusted EPS of $4.40 beat estimates, but comparable sales rose only 0.2% and full-year guidance was cut to the low end, reflecting ongoing DIY weakness.
Key Events · Earnings and Guidance · LOW
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Q2 EPS Beat, Sales Miss
Adjusted diluted EPS of $4.40 beat the $4.22 consensus, but total sales of $25.96B slightly missed the $26.16B estimate. Comparable sales increased only 0.2%.
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Full-Year Guidance Cut
Fiscal 2026 total sales outlook narrowed to $92.0B (from $92.0-94.0B), comparable sales now expected flat (from flat to up 2%), and adjusted diluted EPS guided to approximately $12.25 (from $12.25-12.75).
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DIY Weakness Persists
Comparable sales growth of 0.2% was driven by Pro and home services, while discretionary DIY spending remained under pressure. Online sales grew 15.7%.
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Acquisition Costs Impact GAAP
Recognized $96 million in pre-tax expenses related to the acquisitions of Foundation Building Materials and Artisan Design Group, reducing GAAP EPS by $0.13.
Analysis · LOW · Trade & Services
Lowe's delivered a mixed quarter: adjusted EPS of $4.40 beat estimates, but comparable sales growth of just 0.2% and a full-year guidance cut to the low end of prior ranges point to persistent DIY demand weakness. The company narrowed its fiscal 2026 sales outlook to $92.0 billion and now expects comparable sales to be flat, down from prior expectations of up to 2% growth. While Pro and online channels remain strong, the discretionary DIY segment continues to pressure results. The $96 million in acquisition-related expenses from FBM and ADG also weighed on GAAP earnings, though these are excluded from adjusted figures.
At the time of this filing, LOW was trading at $209.99 on NYSE in the Trade & Services sector, with a market capitalization of approximately $120.9B. The 52-week trading range was $199.40 to $293.06. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.