Lowe`s Cos. Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.10%.
Did LOW Beat Earnings? Q1 2026 Results
Lowe's posted a mixed first quarter for fiscal 2026, delivering a narrow earnings beat against a backdrop of falling sales as cautious consumers pulled back on big-ticket spending. Diluted EPS of $2.92 edged past the $2.88 consensus estimate by 1.48%, but revenue of $20.93 billion fell just short of the $20.97 billion Wall Street expected and slid 2.0% from the year-ago period, with comparable sales declining 1.7%. The most material drag was a sharp drop in transactions above $500, which fell 3.8%, as shoppers demonstrated clear reluctance to commit to larger discretionary purchases, a pattern that weighed broadly on DIY demand. Unfavorable early-quarter weather compounded the pressure, though Pro and online comparable sales both posted mid-single-digit growth, offering meaningful offsets. Gross margin expanded 19 basis points to 33.4%, underscoring disciplined cost management even as operating margin contracted 50 basis points to 11.9%. Looking ahead, Lowe's affirmed its full-year 2025 outlook, projecting total sales of $83.50 billion to $84.50 billion and diluted EPS of $12.15 to $12.40.
- Pro comparable sales grew mid-single digits
- Online comparable sales grew mid-single digits
- Gross margin expanded 19 basis points year-over-year to 33.4%
- Unfavorable weather earlier in the quarter pressured comparable sales
- Later Easter timing benefited March by approximately 250bps and pressured April by a similar amount
- Comp transactions declined 5.4% while average ticket increased 1.7% to $105.20
- Only 3 of 15 regions delivered comp growth above company average
- 4 of 14 product categories (Appliances, Building Materials, Rough Plumbing, Hardware) performed above company average
“Despite near-term uncertainty and housing market headwinds, our team's unwavering focus on exceptional customer service has elevated satisfaction scores and earned Lowe's the #1 ranking in Customer Satisfaction among Home Improvement Retailers by J.D. Power.”
Lowe's CEO, on the earnings call
Forward Guidance & Outlook
Lowe's affirmed its full year 2025 outlook: total sales of $83.5 to $84.5 billion; comparable sales flat to up 1%; operating margin of 12.3% to 12.4%; net interest expense of approximately $1.3 billion; depreciation and amortization of approximately $1.8 billion; effective tax rate of approximately 24.5%; diluted EPS of approximately $12.15 to $12.40; and capital expenditures of approximately $2.5 billion.
LOW YoY Financials
Figures from SEC filings and company reports. Not investment advice.