Lowe’s Lowers Full-Year Outlook Amid DIY Spending Pressure

Lowe’s Companies, Inc. trimmed its fiscal-year 2026 sales target to the low end of the prior range—$92 billion, down from $92-$94 billion. The comparable-sales outlook was narrowed to flat, replacing the earlier view of flat to up 2%. Adjusted earnings per share are now projected at $12.25, removing the prior upper bound of $12.75. The update follows a second-quarter that delivered adjusted earnings per share of $4.40, beating expectations, but showed modest revenue growth and signs of consumer caution in the DIY segment.

Lowe's lowers FY26 comparable sales outlook to flat, misses estimates

The home-improvement sector has been grappling with a sluggish housing market and heightened economic uncertainty. Both Lowe’s and Home Depot have reported “frozen” or “stalled” housing conditions, which depress large-ticket renovation projects while leaving smaller, incremental improvements relatively resilient.

Lowe's Cuts Sales Outlook as Home Projects Slow

• Quarterly revenue: $25.96 billion, up from $23.96 billion a year earlier.

Lowe's Cuts Sales Outlook as Home Projects Slow

• Net income: $2.4 billion, or $4.27 per share, essentially unchanged YoY.

Lowe's Q2 EPS beats at $4.40; guidance cut as comps weaken

• Adjusted EPS: $4.40, a $0.17 beat versus the $4.23 consensus.

Lowe's Q2 EPS beats at $4.40; guidance cut as comps weaken

• Tariff refunds: Approximately $80 million, adding 11 cents per share to EPS.

Lowe's Q2 EPS beats at $4.40; guidance cut as comps weaken

• Online sales growth: 15.7% YoY.

Lowe's Cuts Sales Outlook as Home Projects Slow

• Pro-segment performance: Contributed to a 0.2% rise in comparable store sales, the fifth consecutive quarter of positive comps.

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• Operating margin: 11.2% (guidance range 11.2%-11.4%).

Lowe's Q2 EPS beats at $4.40; guidance cut as comps weaken

CEO Marvin Ellison said the near-term environment remains “dynamic,” citing higher fuel prices and broader economic uncertainty as factors prompting homeowners to prioritize and delay discretionary projects. He described the slowdown as “cyclical” and “a moment in time,” and noted the company will not follow competitors in using tariff-refund dollars to cut prices, calling such actions “not prudent” for maintaining profitability.

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• “The good news is that we're not seeing these customers trade down,” — Marvin Ellison, CEO

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• “We think it's cyclical. We do think it's a moment in time,” — Marvin Ellison, CEO

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• Revenue expectation vs. actual: Analysts forecast $26.16 billion for the quarter; Lowe’s reported $25.96 billion.

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• Guidance consensus: The $92 billion sales target falls short of the consensus estimate of $93.345 billion, and the $12.25 EPS projection is below the analyst average of $12.88.

Lowe's lowers FY26 comparable sales outlook to flat, misses estimates

• Margin outlook: The company cited an operating margin of 11.2%, while some sources reported a slightly higher adjusted operating margin of 11.6% for FY26, reflecting differing definitions of “adjusted” versus GAAP figures.

Lowe's lowers FY26 comparable sales outlook to flat, misses estimates

Lowe’s will monitor DIY spending trends and the competitive landscape through the second half of FY26. Guidance assumes no additional tariff refunds beyond the quarter reported, leaving the impact of future policy changes uncertain. Investors and analysts will watch upcoming quarterly results for signs of recovery in larger home-improvement projects.

Lowe's Cuts Sales Outlook as Home Projects Slow