Lowe’s Q1 2026 Earnings Beat Expectations Amid Housing-Market Headwinds

Lowe’s Companies reported adjusted earnings of $3.03 per share for the quarter ended May 1, surpassing the $2.97 consensus. Revenue reached $23.08 billion, modestly above the $22.97 billion estimate. Comparable-store sales rose 0.6 % and online sales grew 15.5 %. The retailer reaffirmed its fiscal-2026 outlook of $92-$94 billion in total sales and adjusted earnings of $12.25-$12.75 per share.

Benzinga

The results arrived as the U.S. housing market remained strained: elevated mortgage rates (?6.5 %), low home-turnover, and higher gasoline prices suppressed discretionary spending. Executives described the environment as “K-shaped,” with higher-income consumers continuing upgrades while lower-income households curtail spending.

Reuters

• Marvin R. Ellison, Chairman, President & CEO – guided the earnings call.

CNBC

• Brandon Sink, CFO – addressed transportation-cost pressures.

Transport Topics

• Bill Boltz, EVP of Merchandising – highlighted professional-shopper activity.

CNBC

The company completed acquisitions of Foundation Building Materials and Artisan Design Group, incurred $96 million in pre-tax integration costs, and reduced roughly 600 corporate positions to focus resources on store employees.

Lowe’s (LOW) Stock Drops Despite Q1 Earnings Beat as Conservative Outlook Weighs

• Revenue: $23.08 billion (?10 % YoY).

Lowe’s (NYSE:LOW) Q1 CY2026 Sales Top Estimates

• Net earnings: $1.63 billion (GAAP EPS $2.90).

Lowe's reports Q1 results: sales rise to $23.1B, outpaces outlook

• Adjusted EPS: $3.03.

Lowe’s (LOW) Stock Drops Despite Q1 Earnings Beat as Conservative Outlook Weighs

• Comparable sales: +0.6 %; average ticket: +1.5 %; transactions: –0.9 %.

Lowe’s Companies Delivers 10% Revenue Growth in Q1 2026

• Online sales: +15.5 %; Pro segment (contractors) contributed strong growth in rough-plumbing and electrical categories.

Lowe’s Leaned On Pros As Housing Turnover Stayed Frozen

• Gross margin: 32.68 % (down 0.70 pts); operating margin: 11.07 % (down 0.85 pts).

Benzinga

• Operating cash flow: $3.35 billion; capex: $521 million; dividend: $674 million; share repurchase: $363 million.

Benzinga

Growth in digital channels and the professional-contractor segment offset softness in the DIY market, which still accounts for roughly 60-65 % of revenue. Tariff refunds—about half already applied—are being used to mitigate rising fuel costs. However, higher transportation expenses and a potential slowdown in interest-rate reductions pose margin risks. The recent acquisitions are expected to expand long-term revenue streams but may compress short-term profitability.

Target, Lowe's, TJX Beat Q1 Estimates, Raise Outlook

Ellison emphasized the “K-shaped economy,” reaffirmed the Total Home strategy, and noted that a sustained sub-6 % rate environment would “loosen up” home-improvement demand. He also said the company has applied for tariff refunds to offset fuel costs. Sink described near-term pressure from transportation costs and outlined productivity initiatives to offset those pressures. Boltz reported that the professional-shopper segment remains “busy” with repair and maintenance projects.

CNBC

Analysts flagged the modest 0.6 % comparable-sales gain and guidance that trails consensus EPS estimates. Michael Baker (D.A. Davidson) warned that “the lack of a comp beat and Lowe’s only being in line with Home Depot could pressure the stock.” Morgan Stanley’s Simeon Gutman called the results “fine and mostly in line” but noted the guidance remains cautious amid high mortgage rates. The stock fell 2-3 % in after-hours trading despite the beat.

Lowe’s Beat Wall Street. Why Investors Still Sold the Stock

Revenue is reported as $23.08 billion in most sources, but a few outlets list $23.1 billion. Net earnings appear as $1.63 billion in some reports and $1.6 billion in others. The status of tariff-refund applications was not publicly disclosed, creating uncertainty about the full extent of fuel-cost mitigation.

Lowe's reports Q1 results: sales rise to $23.1B, outpaces outlook

• “Roughly 60% to 65% of our revenue is from the do-it-yourself customer, and this has been a really difficult do-it-yourself housing market, so for us to do four consecutive quarters of positive comps, we were pleased with that,” — Marvin Ellison, CEO

CNBC

• “We are operating in a K-shaped economy where the higher income consumers are spending on home upgrades while the lower income consumers are a little bit more cautious and uncertain,” — Marvin Ellison, CEO

Reuters

• “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,” — Marvin Ellison, CEO

Hardware Retailing

• “Lowe’s has had a temporary cushion – Chief Executive Marvin Ellison said it has already used about half of the tariff refunds it received to offset fuel costs – but that’s a one-off.” — Marvin Ellison, CEO

Lowe’s Leaned On Pros As Housing Turnover Stayed Frozen

• “is doing its part (executing well) as it gears its business for the next housing cycle.” — Simeon Gutman, Morgan Stanley analyst

Transport Topics

• “BI’s Reading has previously noted that while Lowe’s recent acquisitions in the professional contractor segment may squeeze margins in the near term, “they should lead to stronger long-term growth,” as pro customers represent roughly 30% of sales.” — Drew Reading, Bloomberg Intelligence analyst

Transport Topics

The company will monitor interest-rate trends, housing-turnover rates, and fuel-cost developments as it integrates its recent acquisitions. Maintaining the current full-year guidance hinges on the ability to sustain Pro-segment momentum and to offset transportation expenses through tariff refunds and productivity gains.

Lowe’s (LOW) Stock Drops Despite Q1 Earnings Beat as Conservative Outlook Weighs