Story perspectives

Lowe’s Cuts FY26 Outlook as Q2 EPS Beats Estimates

8/20/2026

Summary

Lowe's Beats Estimates

Lowe's Companies Inc reported Q2 earnings of $4.40 per share, beating the $4.23 estimate, and cut its FY26 outlook to flat comparable sales.
Gross margin rose to 33.0%, helped by tariff refunds adding 11 cents per share.
Shares rose 3.88% to $224.12 after a 2% dip, prompting JPMorgan analyst Christopher Horvers (Overweight) to warn flat outlook could pressure valuation.

Summary

Lowe's Keeps Refund

CEO Marvin Ellison said Lowe’s will not pass the $80 million tariff-refund to customers, calling aggressive price cuts “not prudent.”
The refund added an 11-cent boost to adjusted earnings per share for the quarter.
He noted smaller DIY projects rose 1.5% year-over-year while larger projects fell over 2%, indicating a shift in consumer spending.
Lowe’s is expanding its professional focus with an updated Pro loyalty program, new digital tools, and recent acquisitions.

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Lowe's Beats Estimates

Lowe's Companies Inc reported Q2 earnings of $4.40 per share, beating the $4.23 estimate, and cut its FY26 outlook to flat comparable sales.
Gross margin rose to 33.0%, helped by tariff refunds adding 11 cents per share.
Shares rose 3.88% to $224.12 after a 2% dip, prompting JPMorgan analyst Christopher Horvers (Overweight) to warn flat outlook could pressure valuation.

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