Lowe`s Cos. Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.50%.
Did LOW Beat Earnings? Q2 2026 Results
Lowe's posted a stronger-than-expected second quarter of fiscal 2025, with adjusted diluted EPS of $4.33 clearing the $4.24 consensus estimate by 2.15% and revenue of $23.96 billion edging past forecasts while rising 1.6% year over year. The headline driver was disciplined execution across the core business, where comparable sales grew 1.1% despite headwinds from challenging early-quarter weather, with nine of fifteen regions and nine of fourteen product categories turning positive. The June closing of the Artisan Design Group acquisition for approximately $1.31 billion added strategic weight to the Pro and new construction segments, though the deal's $43 million in transaction and purchase accounting costs trimmed GAAP diluted EPS to $4.27. Gross margin expanded 34 basis points to 33.81%, underscoring solid operational control. Looking ahead, Lowe's raised its full-year sales outlook to $84.50 to $85.50 billion, incorporating ADG, while announcing an $8.80 billion deal to acquire Foundation Building Materials, a move that further deepens its reach into the professional contractor market.
- Positive comparable sales of 1.1% driven by solid performance in both Pro and DIY
- 9 of 15 regions delivered positive comp sales growth
- 9 of 14 product categories delivered positive comp sales
- Online sales grew 7.5% year-over-year
- Gross margin expanded 34 basis points to 33.81%
- Adjusted operating margin expanded 23 basis points to 14.66%
- Positive Pro comp sales on top of strong mid-single-digit growth last year
- Customer satisfaction scores increased again
“This quarter, the company delivered positive comp sales driven by solid performance in both Pro and DIY. Despite challenging weather early in the quarter, our teams drove both sales growth and improved profitability. I'd also like to thank our front-line associates for their outstanding service which led to another increase in customer satisfaction scores.”
Lowe's CEO, on the earnings call
Forward Guidance & Outlook
Lowe's updated its full year 2025 outlook to incorporate the Artisan Design Group acquisition while keeping core business expectations unchanged. Total sales are now expected at $84.5 to $85.5 billion (up from $83.5 to $84.5 billion). Comparable sales are expected to be flat to up 1%. GAAP operating margin is projected at 12.1% to 12.2% (down from 12.3% to 12.4%), with adjusted operating margin of 12.2% to 12.3%. GAAP diluted EPS is expected at approximately $12.10 to $12.35 (previously $12.15 to $12.40), with adjusted diluted EPS of approximately $12.20 to $12.45. Capital expenditures are expected to be approximately $2.5 billion, with net interest expense of approximately $1.3 billion and an effective tax rate of approximately 24.5%.
LOW YoY Financials
Figures from SEC filings and company reports. Not investment advice.