Lowe's Cuts 2026 Guidance, These Bullish Analysts Expect Comps To Accelerate In 2H

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Shares of Lowe's Companies Inc (NYSE: LOW) pulled back in early trading on Thursday, after the company reported mixed second-quarter results.

Here are the key analyst takeaways:

  • JPMorgan analyst Christopher Horvers reiterated an Overweight rating and price target of $252.
  • KeyBanc Capital Markets analyst Bradley Thomas maintained an Overweight rating and price target of $275.
JPMorgan: Lowe's reported its second-quarter comps below expectations, while margins excluding tariff refunds came in well above the implied guidance of 13.3%-13.4%, Horvers said in a note. He added that the company de-risked its guidance by projecting flattish comps persist through the back half of the year, despite:

  • Easier comparisons
  • Easing DIY seasonal pressure, which shifts the mix to more pro/repair and maintenance
  • The two-year trend improving during the second quarter
Management guided to full-year earnings of $12.25 per share and projected a decline of around 7% in the third quarter, implying earnings of around $2.85 per share, the analyst stated.

"On the margin front, the remaining tariff refunds are a significant potential source of upside (another potential ~30 bps to the year, by our math)," he further wrote.

KeyBanc Capital Markets: Lowe's reported mixed results for the second quarter due to "unfavorable weather, temporary competitive pressures, and sluggish industry trends," Thomas said. Despite these headwinds, the company's comps came in at 0.2%, representing the fifth consecutive quarter of positive comps, he added.

The analyst stated that Lowe's comps are likely to accelerate in the back half of the year, given:

  • July's transitory promotional environment
  • Likely receipt of significant tariff refunds in the third quarter
  • Potential for storm activity
"While LOW lowered its 2026 guide (and we revise our estimates lower), we are optimistic that nearly all NT negative factors are baked into the stock, with the potential for underlying improvement ahead," he further wrote.

LOW Price Action: Shares of Lowe's Companies had declined by 1.13% to $218.24 at the time of publication on Thursday.