Lowe's Companies, Inc.
Lowe's reported net earnings of $2.4 billion and GAAP diluted earnings of $4.27 per share, unchanged from a year earlier.
Adjusted earnings rose 1.6% to $4.40 per share from $4.33, beating the $4.22 analyst estimate. GAAP and adjusted earnings included an 11-cent benefit from IEEPA tariff refunds.
Net sales rose 8.3% to $25.96 billion from $23.96 billion a year earlier but missed the $26.16 billion estimate.
Comparable sales increased 0.2%, supported by strength in Pro and home services. Online sales rose 15.7%. However, continued pressure on discretionary DIY spending weighed on demand.
"Sustained growth in Pro, Online and Home Services led to our fifth consecutive quarter of positive comp sales, despite pressure in discretionary DIY spending," Chairman, President and CEO Marvin R. Ellison said.
He added that the company remains focused on executing its Total Home strategy and investing to support growth and profitability amid a dynamic near-term environment.
The quarter included $96 million in pretax expenses related to the Foundation Building Materials and Artisan Design Group acquisitions.
As of July 31, 2026, Lowe's operated 1,761 stores, representing 196.0 million square feet of retail selling space.
Margins Narrow As Operating Income Rises
Gross margin narrowed to 33.04% from 33.81% a year earlier. Operating income increased to $3.55 billion from $3.47 billion, while operating margin fell to 13.67% from 14.48%.
For the first six months, operating cash flow totaled $7.01 billion, compared with $7.61 billion a year earlier. Capital expenditures were $1.06 billion.
Lowe's ended the quarter with $3.17 billion in cash and cash equivalents and paid $673 million in dividends during the quarter.
Lowe's Narrows 2026 Outlook
Lowe's narrowed fiscal 2026 sales guidance to about $92 billion from its previous range of $92 billion to $94 billion, missing the $93.35 billion analyst estimate.
The company now expects adjusted EPS of about $12.25, down from its previous range of $12.25 to $12.75 and missing the $12.88 estimate.
Lowe's expects GAAP EPS of about $11.75, comparable sales to be flat, operating margin of about 11.2% and adjusted operating margin of about 11.6%.
The outlook includes tariff refunds recognized in the second quarter but excludes potential additional refunds in the second half.
LOW Price Action: Lowe's shares fell 3.54% to $208.01 in Wednesday premarket trading, according to Benzinga Pro data.
