Lowe`s Cos. Inc
Q1 2027 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.03%.
Did LOW Beat Earnings? Q1 2027 Results
Lowe's Companies delivered a mixed first quarter of fiscal 2027, narrowly missing Wall Street's earnings target even as revenue climbed sharply on the back of recent acquisitions. Adjusted diluted EPS came in at $3.03, falling just short of the $3.06 consensus estimate by 0.98%, while total sales rose 10.3% year-over-year to $23.08 billion, lifted in large part by contributions from the recently acquired Foundation Building Materials and Artisan Design Group. The acquisitions, however, carried a cost: $96 million in pre-tax intangible asset amortization pressured margins, compressing gross margin by 70 basis points to 32.68% and nudging GAAP diluted EPS down slightly to $2.90 from $2.92 a year ago. Comparable sales grew a modest 0.6%, supported by 15.5% online sales growth and continued strength in Pro services and appliances. Despite the near-term margin headwinds, Lowe's affirmed its full-year fiscal 2026 outlook, projecting total sales of $92.00 billion to $94.00 billion and adjusted diluted EPS of $12.25 to $12.75, signaling management's confidence in the company's Total Home strategy amid a still-challenging housing environment.
- Strong spring execution across stores
- 15.5% online sales growth
- Continued strength in appliances, home services, and Pro sales
- Fourth consecutive quarter of positive comparable sales
- Positive comp sales in 9 of 13 product categories
- 11 of 15 regions delivered positive comp sales growth
- Comp average ticket of $107.59
- Comp transactions declined 0.9%, comp ticket increased 1.5%
“Strong spring execution and continued momentum in Pro, Appliances, Online, and Home Services supported a solid start to the year as we delivered our fourth consecutive quarter of positive comp sales. In spite of a challenging housing macro, we remain focused on advancing our Total Home strategy to provide the best experience for our customer. I'd also like to thank our associates for their dedication to serving our customers throughout the busy spring season.”
Lowe's CEO, on the earnings call
Forward Guidance & Outlook
Lowe's affirmed its full-year fiscal 2026 outlook: total sales of $92.0 to $94.0 billion (approximately 7% to 9% increase year-over-year), comparable sales flat to up 2%, GAAP operating margin of 11.2% to 11.4%, adjusted operating margin of 11.6% to 11.8%, net interest expense of approximately $1.6 billion, effective income tax rate of approximately 24.5%, GAAP diluted EPS of approximately $11.75 to $12.25, adjusted diluted EPS of approximately $12.25 to $12.75, and capital expenditures of up to $2.5 billion. The adjusted guidance excludes an expected 40 basis point and $0.50 after-tax impact from intangible asset amortization related to acquisitions.
LOW YoY Financials
Figures from SEC filings and company reports. Not investment advice.