Full Breakdown
Lowe’s Q2 2026 Earnings Reveal Flat Comparable Sales and a Cautious Outlook
8/19/2026, 8:02:59 PM
Core Event: Q2 Results and Revised Full-Year Guidance
Lowe’s Companies, Inc. reported fiscal-second-quarter results for the period ending July 31, 2026. Total sales were $25.96 billion, up 8.3 % YoY but below the $26.16 billion consensus. Adjusted earnings were $4.40 per share, beating the $4.22 estimate. Comparable-sales growth slowed to 0.2 %—the fifth consecutive quarter of modest gains—and missed the 0.8 % forecast.
In response, the retailer trimmed its FY 2026 outlook to the low end of its prior range, now expecting total sales of $92 billion (down from $92-$94 billion) and flat comparable sales (versus flat-to-up 2 %). Adjusted EPS is projected at $12.25, also at the lower edge of the previous $12.25-$12.75 range. Operating-margin guidance was narrowed to 11.2 % (previously 11.2-11.4 %).
Background & Context
The home-improvement sector faces higher mortgage rates, elevated borrowing costs and broader inflation concerns that have curbed discretionary spending on large renovation projects. Competitor Home Depot reported stronger Q2 results and maintained its full-year targets, highlighting divergent performance within the industry.
Data & Statistics
- Revenue: $25.96 billion (actual) vs. $26.16 billion (consensus)
- Adjusted EPS: $4.40 (beat) vs. $4.22 (consensus)
- Net income: $2.4 billion, unchanged from FY 2025
- Comparable-sales growth: 0.2 % YoY (fifth straight quarter of positive comps)
- Online sales increase: 15.7 % YoY
- Pro and home-services contribution: Primary driver of comp growth
- Tariff refunds: $80 million in the quarter, adding 11 cents per share to EPS
- Store count: 1,761 locations, 196 million sq ft of retail space
Official Statements & Responses
Ellison said the Total Home strategy—focused on Pro customers, online capabilities and home-services—remains on track, describing the slowdown as “cyclical” and “a moment in time.”
Why It Matters / Impact
The flat-sales outlook signals that the housing-market slowdown is translating into reduced demand for big-ticket DIY projects, even as professional-contractor work and online sales provide a buffer. Investors view the guidance cut as a bellwether for consumer confidence in discretionary spending and for Lowe’s valuation relative to Home Depot and peers.
Conflicting Reports & Gaps
- Revenue figure variance: Hardwareretailing cites $26.0 billion, while CNBC and TradingView report $25.96 billion. Both align with the disclosed range but differ in rounding.
- Online sales growth: Retaildive mentions a “nearly 16 %” rise, whereas other sources specify 15.7 %.
- Tariff refund impact: Sources agree on an 11-cent per-share boost, but the refund amount is reported as $80 million versus $96 million, reflecting differing accounting treatments.
Verbatim Quotes
- “The good news is that we're not seeing these customers trade down,” — Marvin Ellison, CEO
- “We think it's cyclical. We do think it's a moment in time,” — Marvin Ellison, CEO
What’s Next
Lowe’s will operate under the revised FY 2026 targets of $92 billion in sales, flat comparable sales and an 11.2 % operating margin. The company plans to continue investing in its Pro loyalty program, digital tools and recent acquisitions (Artisan Design Group and Foundation Building Materials) to sustain growth in professional and online channels. No additional earnings releases or strategic milestones have been announced beyond the current guidance.
