Lowe`s Cos. Inc
Q2 2027 Earnings
Excludes $96 million in pre-tax acquisition-related intangible asset amortization from Artisan Design Group and Foundation Building Materials acquisitions. Both GAAP and adjusted EPS include a $0.11 per share benefit from IEEPA tariff refunds.
Market Reaction
Did LOW Beat Earnings? Q2 2027 Results
Lowe's Companies delivered a stronger-than-expected second quarter in fiscal 2026, posting adjusted EPS of $4.40 against a FactSet consensus of $4.22, marking the fifth consecutive quarter the home improvement retailer has cleared Wall Street's earnings bar. Revenue climbed 8.3% year over year to $25.96 billion, underpinned by a fifth straight quarter of positive comparable sales growth, even as the DIY segment remained under pressure from cautious consumer spending on larger, discretionary projects. The quarter's most material driver was momentum in the Pro customer channel, online sales, and home services, with digital revenue surging 15.7% and nine of 13 product categories posting positive comps. Results also included an $0.11 per-share benefit from IEEPA tariff refunds, while $96 million in pre-tax acquisition-related intangible amortization tied to the Artisan Design Group and Foundation Building Materials deals weighed on margins. Looking ahead, Lowe's narrowed its full-year 2026 guidance to the low end of prior ranges, now projecting total sales of $92.00 billion and adjusted diluted EPS of approximately $12.25, reflecting a measured but steady recovery in the home improvement market.
- Strong Pro customer sales growth driving fifth consecutive quarter of positive comps
- Online sales increased 15.7% year over year
- Home services sales growth
- Positive comp sales in 9 of 13 product categories
- Average ticket increased 2.3% to $107.85
- Persistent DIY macro pressures offsetting gains
- Comp transactions declined 2.1%
- $0.11 per share benefit from IEEPA tariff refunds
“Sustained growth in Pro, Online and Home Services led to our fifth consecutive quarter of positive comp sales, despite pressure in discretionary DIY spending. While the near-term remains dynamic, our teams are executing at a high level, advancing our Total Home strategy and investing to drive growth and profitability. I would like to thank all of our frontline associates for their hard work and dedication to our customers.”
Lowe's CEO, on the earnings call
Forward Guidance & Outlook
Lowe's narrowed its fiscal year 2026 outlook to the low end of prior guidance ranges: total sales of $92.0 billion (previously $92.0 to $94.0 billion); comparable sales expected to be flat year over year (previously flat to up 2%); operating margin of 11.2% (previously 11.2% to 11.4%); adjusted operating margin of 11.6% (previously 11.6% to 11.8%); diluted EPS of approximately $11.75 (previously $11.75 to $12.25); adjusted diluted EPS of approximately $12.25 (previously $12.25 to $12.75); net interest expense of approximately $1.6 billion; effective tax rate of approximately 24.5%; and capital expenditures of up to $2.5 billion. The updated outlook includes tariff refunds recognized during Q2 but excludes any potential additional tariff refunds in the second half of the year.
LOW YoY Financials
Figures from SEC filings and company reports. Not investment advice.