Lowe’s Stumbles on Weak Guidance While TJX Climbs on Broad Off-Price Beat
Both Lowe’s (NYSE: LOW | LOW Price Prediction) and TJX Companies (NYSE: TJX) reported Q4 results before the bell on Wednesday, but morning trading revealed a clear split verdict. Both beat expectations, but TJX traded higher while Lowe’s pulled back.…
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Both Lowe’s (NYSE: LOW | LOW Price Prediction) and TJX Companies (NYSE: TJX) reported Q4 results before the bell on Wednesday, but morning trading revealed a clear split verdict. Both beat expectations, but TJX traded higher while Lowe’s pulled back. Here’s where things stand midday.
Lowe’s: Acquisition Growth, but Guidance Falls Short
Ahead of the report, the housing macro was the central question for Lowe’s. The answer came through in the numbers. LOW is trading at $266.25 in the late morning, down from $269.65 at filing, reflecting investor disappointment with the results and guidance.
- Adjusted EPS came in at $1.98, topping the $1.94 estimate by roughly 2%.
- Revenue of $20.58 billion grew 10.9% year over year, though that growth was largely acquisition-driven via FBM and ADG.
- Comparable sales rose just 1.3%, with Pro, online, and home services as the primary contributors.
- Adjusted operating margin contracted 41 basis points year over year to 9.02%.
For FY26, Lowe’s guided to total sales of $92 billion to $94 billion and adjusted EPS of $12.25 to $12.75. The midpoint of that EPS range is essentially flat with FY25’s $12.28, which likely explains the muted market reaction. Moreover, housing starts declined 5.8% year over year through December 2025, giving CEO Marvin Ellison’s cautious tone real macro grounding. Ellison noted: “While the housing macro remains pressured, we are focused on directing what is within our control.”
TJX: Strong Beat, Shares Respond
TJX delivered the cleaner story. TJX is trading at $158.87, up from $155.29 at filing, as investors rewarded a broad-based beat.
- Adjusted EPS of $1.43 beat the $1.39 estimate (the GAAP figure of $1.58 includes a one-time $221M litigation settlement and is not the cleaner operating comparison)
- Comparable sales grew 5%, well above plan, with HomeGoods up 6% and TJX Canada up 7%
- Adjusted pretax profit margin expanded 60 basis points to 12.2%
- Full-year revenue crossed $60B for the first time
Management’s tone was notably confident. CEO Ernie Herrman said, “the first quarter is off to a strong start and availability of quality merchandise continues to be outstanding.” For FY27, TJX guided to comp sales growth of 2% to 3% and adjusted EPS of $4.93 to $5.02, alongside a 13% dividend increase to $0.48 per share. With consumer sentiment down 12.8% year over year as of January 2026, the off-price value proposition continues to work in TJX’s favor.
What to Watch Next
For Lowe’s, the key question is whether the Pro customer segment and online momentum can offset a still-pressured housing market through FY26. For TJX, watch whether the strong Q4 comp trajectory carries into Q1 guidance delivery, and how analysts revise price targets following this morning’s beat.
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Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.
Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community.
Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.
Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, moderating workshop sessions at regional conventions.
