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MOORESVILLE, N.C., Sept. 8, 2026 /PRNewswire/ -- Lowe's Companies, Inc. (NYSE: LOW) announces that Marvin R.

HB Wealth Management LLC decreased its position in shares of Lowe’s Companies, Inc. (NYSE:LOW – Free Report) by 8.2% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 52,854 shares of the home improvement retailer’s stock after selling 4,723 shares during the quarter. HB Wealth Management LLC’s holdings in Lowe’s Companies were worth $11,654,000 as of its most recent filing with the SEC.

Several other institutional investors have also modified their holdings of the company. Swiss RE Ltd. acquired a new stake in Lowe’s Companies in the 4th quarter valued at approximately $25,000. Wilkerson Advisory Group LLC acquired a new position in Lowe’s Companies during the 4th quarter worth $27,000. Sankala Group LLC acquired a new position in Lowe’s Companies during the 4th quarter worth $33,000. Markowski Investments bought a new position in shares of Lowe’s Companies in the second quarter worth $33,000. Finally, Triumph Capital Management bought a new position in shares of Lowe’s Companies in the third quarter worth $34,000. Institutional investors own 74.06% of the company’s stock.

Insider Buying and Selling In related news, EVP Juliette Pryor sold 9,330 shares of the firm’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $224.81, for a total transaction of $2,097,477.30. Following the completion of the sale, the executive vice president directly owned 16,142 shares in the company, valued at approximately $3,628,883.02. This trade represents a 36.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Janice Dupré sold 14,150 shares of Lowe’s Companies stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $221.90, for a total transaction of $3,139,885.00. Following the completion of the transaction, the executive vice president owned 39,785 shares in the company, valued at approximately $8,828,291.50. This trade represents a 26.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 25,980 shares of company stock worth $5,796,937 in the last ninety days. 0.29% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades A number of equities research analysts recently weighed in on LOW shares. Gordon Haskett cut their price objective on shares of Lowe’s Companies from $280.00 to $250.00 and set a “buy” rating on the stock in a research note on Thursday, May 21st. DA Davidson reiterated a “neutral” rating and issued a $245.00 target price on shares of Lowe’s Companies in a research report on Wednesday, August 19th. Wells Fargo & Company dropped their price target on shares of Lowe’s Companies from $255.00 to $245.00 and set an “overweight” rating on the stock in a research report on Tuesday, August 11th. Oppenheimer reduced their price target on shares of Lowe’s Companies from $315.00 to $275.00 and set an “outperform” rating for the company in a research note on Monday, May 18th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Lowe’s Companies from $279.00 to $252.00 and set an “overweight” rating for the company in a report on Friday, July 31st. Twenty-three investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $258.53. Get Our Latest Analysis on Lowe’s Companies

Lowe’s Companies Price Performance Shares of LOW stock opened at $204.45 on Monday. The stock has a 50-day simple moving average of $213.44 and a 200 day simple moving average of $227.51. The stock has a market capitalization of $114.71 billion, a P/E ratio of 17.28, a P/E/G ratio of 2.72 and a beta of 0.85. Lowe’s Companies, Inc. has a fifty-two week low of $199.34 and a fifty-two week high of $293.06.

Lowe’s Companies (NYSE:LOW – Get Free Report) last issued its quarterly earnings results on Wednesday, August 19th. The home improvement retailer reported $4.40 EPS for the quarter, topping the consensus estimate of $4.22 by $0.18. Lowe’s Companies had a net margin of 7.34% and a negative return on equity of 75.67%. The firm had revenue of $25.96 billion for the quarter, compared to analysts’ expectations of $26.13 billion. During the same period in the previous year, the business earned $4.33 earnings per share. Lowe’s Companies’s revenue for the quarter was up 8.3% compared to the same quarter last year. Lowe’s Companies has set its FY 2026 guidance at 12.250-12.250 EPS. On average, sell-side analysts anticipate that Lowe’s Companies, Inc. will post 12.26 earnings per share for the current year.

Lowe’s Companies Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 4th. Investors of record on Wednesday, October 21st will be issued a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Wednesday, October 21st. Lowe’s Companies’s payout ratio is presently 42.27%.

Key Stories Impacting Lowe’s Companies Here are the key news stories impacting Lowe’s Companies this week:

Positive Sentiment: Retail earnings point to a “K-shaped” consumer economy, with Lowe’s and Home Depot benefiting from relatively solid home-improvement sales even as lower-income-focused retailers face greater tariff and margin pressure. Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy Positive Sentiment: Lowe’s plans to open three additional stores in 2026, supporting its long-term sales footprint and market expansion. Lowe’s opening 3 more stores in these states in 2026 Positive Sentiment: The Lowe’s Foundation launched a large skilled-trades training coalition with NVIDIA, AT&T, Bank of America, Carrier, General Motors, DEWALT and Duke Energy. The effort could expand the contractor labor pool and support future Pro customer demand. Nvidia Is Now Paying to Train Plumbers Neutral Sentiment: Five new executive vice presidents were appointed across Pro, Home Services, stores, information and AI, strategy, and marketing. Lowe’s also maintained its $1.25 quarterly dividend, while expanding online offerings; the new leadership could improve execution, but a shelf registration for 2.5 million shares creates a potential future dilution overhang. Did Lowe’s New EVP Lineup and Shelf Filing Just Quietly Reframe the LOW Investment Narrative? Neutral Sentiment: The NFL-focused “Earn Your Sunday” campaign adds new star athletes and may strengthen brand engagement, although its direct financial impact is unclear. Lowe’s Kicks Off Year Two of Earn Your Sunday Negative Sentiment: Zacks Research cut its FY2027 EPS estimate for Lowe’s to $12.25 from $12.45, aligning it near the $12.26 consensus and signaling limited expected earnings growth. Zacks Research Issues Negative Estimate for LOW Earnings Negative Sentiment: Mortgage rates have reached a one-year high following a global bond sell-off. Higher borrowing costs could discourage housing transactions and large remodeling projects, pressuring demand at Lowe’s and Home Depot. Mortgage Rates Just Hit a 1-Year High Lowe’s Companies Profile (Free Report)

Lowe’s Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe’s also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.

Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.

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Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Lowe's (LOW - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Lowe's currently has an average brokerage recommendation (ABR) of 1.73, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 31 brokerage firms. An ABR of 1.73 approximates between Strong Buy and Buy.

Of the 31 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 64.5% and 3.2% of all recommendations.

Brokerage Recommendation Trends for LOW

Check price target & stock forecast for Lowe's here>>>

The ABR suggests buying Lowe's, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in LOW?In terms of earnings estimate revisions for Lowe's, the Zacks Consensus Estimate for the current year has declined 1.6% over the past month to $12.28.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Lowe's. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Lowe's with a grain of salt.

Allen Mooney & Barnes Investment Advisors LLC decreased its holdings in Lowe’s Companies, Inc. (NYSE:LOW – Free Report) by 6.6% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 61,811 shares of the home improvement retailer’s stock after selling 4,362 shares during the quarter. Lowe’s Companies comprises 2.1% of Allen Mooney & Barnes Investment Advisors LLC’s investment portfolio, making the stock its 19th largest holding. Allen Mooney & Barnes Investment Advisors LLC’s holdings in Lowe’s Companies were worth $13,629,000 as of its most recent SEC filing.

Other large investors have also recently bought and sold shares of the company. Norges Bank acquired a new position in Lowe’s Companies in the 4th quarter valued at $1,993,697,000. Price T Rowe Associates Inc. MD boosted its holdings in Lowe’s Companies by 45.2% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 6,555,565 shares of the home improvement retailer’s stock valued at $1,580,941,000 after purchasing an additional 2,039,343 shares in the last quarter. J. Stern & Co. LLP increased its position in Lowe’s Companies by 7,814.9% during the 4th quarter. J. Stern & Co. LLP now owns 1,490,369 shares of the home improvement retailer’s stock worth $359,417,000 after purchasing an additional 1,471,539 shares during the period. Eurizon Capital SGR S.p.A. acquired a new position in Lowe’s Companies during the 4th quarter worth approximately $308,683,000. Finally, Viking Global Investors LP purchased a new position in shares of Lowe’s Companies during the 4th quarter worth approximately $219,948,000. Institutional investors and hedge funds own 74.06% of the company’s stock.

Wall Street Analysts Forecast Growth LOW has been the topic of a number of analyst reports. Weiss Ratings downgraded Lowe’s Companies from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, August 17th. UBS Group dropped their price target on Lowe’s Companies from $285.00 to $275.00 and set a “buy” rating for the company in a research report on Thursday, August 20th. Truist Financial decreased their price objective on shares of Lowe’s Companies from $255.00 to $254.00 and set a “buy” rating on the stock in a research report on Thursday, August 20th. Bank of America dropped their target price on shares of Lowe’s Companies from $260.00 to $257.00 and set a “neutral” rating for the company in a report on Thursday, May 21st. Finally, Benchmark assumed coverage on shares of Lowe’s Companies in a research report on Tuesday, May 12th. They set a “hold” rating for the company. Twenty-three equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $258.53.

Read Our Latest Research Report on Lowe’s Companies Lowe’s Companies Trading Up 1.1% Shares of LOW stock opened at $202.09 on Friday. The firm has a 50-day moving average price of $213.80 and a 200 day moving average price of $228.09. Lowe’s Companies, Inc. has a twelve month low of $199.34 and a twelve month high of $293.06. The company has a market capitalization of $113.38 billion, a price-to-earnings ratio of 17.08, a PEG ratio of 2.66 and a beta of 0.85.

Lowe’s Companies (NYSE:LOW – Get Free Report) last released its earnings results on Wednesday, August 19th. The home improvement retailer reported $4.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.22 by $0.18. Lowe’s Companies had a net margin of 7.34% and a negative return on equity of 75.67%. The company had revenue of $25.96 billion for the quarter, compared to analyst estimates of $26.13 billion. During the same period in the prior year, the firm earned $4.33 EPS. The firm’s quarterly revenue was up 8.3% on a year-over-year basis. Lowe’s Companies has set its FY 2026 guidance at 12.250-12.250 EPS. As a group, research analysts predict that Lowe’s Companies, Inc. will post 12.26 earnings per share for the current year.

Lowe’s Companies Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 4th. Investors of record on Wednesday, October 21st will be given a dividend of $1.25 per share. The ex-dividend date of this dividend is Wednesday, October 21st. This represents a $5.00 annualized dividend and a yield of 2.5%. Lowe’s Companies’s dividend payout ratio is 42.27%.

Insiders Place Their Bets In other news, EVP Janice Dupré sold 14,150 shares of the business’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $221.90, for a total transaction of $3,139,885.00. Following the completion of the sale, the executive vice president directly owned 39,785 shares of the company’s stock, valued at $8,828,291.50. The trade was a 26.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Juliette Pryor sold 9,330 shares of the company’s stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $224.81, for a total value of $2,097,477.30. Following the sale, the executive vice president owned 16,142 shares of the company’s stock, valued at approximately $3,628,883.02. The trade was a 36.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 25,980 shares of company stock valued at $5,796,937 over the last quarter. Company insiders own 0.29% of the company’s stock.

Trending Headlines about Lowe’s Companies Here are the key news stories impacting Lowe’s Companies this week:

Positive Sentiment: Lowe’s Foundation launched the “Building Futures Skilled Trades Coalition,” bringing together NVIDIA, AT&T, Bank of America, General Motors, Carrier, DEWALT and Duke Energy to help train one million skilled-trades workers by 2035. The initiative could strengthen Lowe’s long-term customer and labor pipeline while supporting demand for home-improvement projects. Nvidia Is Now Paying to Train Plumbers, and the Stock That Should Benefit Most Just Hit a 52-Week Low Neutral Sentiment: Lowe’s kicked off the second year of its “Earn Your Sunday” NFL campaign, adding Myles Garrett and Jordan Love to its roster of football ambassadors. The marketing effort may increase brand engagement and project-related traffic, but its direct earnings impact is uncertain. Lowe’s Kicks Off Year Two of Earn Your Sunday Neutral Sentiment: A comparison of Lowe’s and Home Depot dividends highlighted concerns about dividend coverage and the pace of future increases for at least one retailer. The report could make income-focused investors more cautious, although the provided details do not clearly identify Lowe’s as the company with the weaker coverage. Home Depot vs. Lowe’s: One Dividend Looks Much Stronger Under the Hood Negative Sentiment: Mortgage rates reached a one-year high following a global bond-market sell-off. Higher financing costs can reduce housing activity and delay big-ticket renovations, pressuring sales at Lowe’s and Home Depot. Mortgage Rates Just Hit a 1-Year High Negative Sentiment: Zacks Research reduced several Lowe’s earnings forecasts, including FY2027 EPS to $12.25 from $12.45, FY2028 to $12.94 from $13.60 and FY2029 to $13.90 from $14.62. Although one later-quarter estimate increased slightly, the broad downward revisions signal weaker expected profit growth and are likely weighing on the stock. Lowe’s Companies Analyst Estimates Lowe’s Companies Profile (Free Report)

Lowe’s Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe’s also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.

Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.

Featured Stories Five stocks we like better than Lowe’s Companies The Path to $230 Billion: Broadcom Outlines the Next Phase of Its AI Growth Story NVIDIA’s Hugging Face Deal Raises a Bigger Question About Its AI Moat Now Dropping the Dough: Yum! Brands Strategically Trims the Fat These 3 Stock Charts Just Flashed the Dreaded Death Cross Pattern Want to see what other hedge funds are holding LOW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lowe’s Companies, Inc. (NYSE:LOW – Free Report).

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Lowe's adds NFL stars Myles Garrett and Jordan Love to the Lowe's Home Team alongside Justin Jefferson, Christian McCaffrey and Dak Prescott with exclusive products and experiences designed to help fans put in the work and 'Earn Their Sunday'

, /PRNewswire/ -- Lowe's, the official home improvement partner of the National Football League for the eighth consecutive year, is encouraging NFL fans to Earn Your Sunday by tackling home projects during the week so that Sundays can be all about football, family and relaxation.

Lowe's Lowe's taps into the personalities and playing styles of its NFL roster to show how the right products can help tackle any job. From the field to the backyard, Lowe's NFL stars put their go-to products to work, helping homeowners take on their own to-do lists and get gameday ready. This season, fans will have the chance to get their hands on products inspired by the same gear they see their favorite players using throughout the season.

Joining the Lowe's Home Team this season are reigning Defensive Player of the Year and single-season sack record holder Myles Garrett and standout quarterback Jordan Love. Garrett and Love join returning stars Justin Jefferson, Christian McCaffrey and Dak Prescott to inspire fans to tackle their projects, finish the job and enjoy the reward of a Sunday well earned.

The Kobalt NFL Mini Toolboxes are also back, officially licensed for all 32 NFL teams after selling out earlier this year. Available now online and at select stores, the fan-favorite toolboxes are the first of several exclusive product drops coming throughout the season that bring Earn Your Sunday from the screen into fans' hands. MyLowe's Rewards and MyLowe's Pro Rewards members can expect exclusive Member-Only product drops and early access to select releases, with more surprises to come throughout the season that give members even more ways to Earn Their Sunday, while supplies last.

And beginning Sept. 9, MyLowe's Rewards and MyLowe's Pro Rewards members can also visit the Lowe's Earn Your Sunday Tour, any Lowe's location or enter online for the chance to win the ultimate Sunday at Super Bowl LXI in Los Angeles, with a trip for two including round-trip airfare, three nights of hotel accommodations, two tickets to Super Bowl LXI, pre-game tailgate passes and a $1,000 prepaid debit card. An additional 200 winners will receive a $10 Lowe's gift card. For more details, visit Lowes.com/superbowlsweeps.^

"At Lowe's, our ambition is to be the most helpful brand in home improvement, and that means helping our customers make more time for the people and moments that matter most," said Jen Wilson, Lowe's Senior Vice President and Chief Marketing Officer. "That's what Earn Your Sunday is all about: Helping fans get the job done so they can put the tools down and enjoy a Sunday well earned. This season, we're excited to bring that idea to life in even more ways, with an incredible roster of NFL talent and everything fans need to tackle their projects and get gameday ready."

The Lowe's Earn Your Sunday Tour will also hit the road for a second consecutive year, bringing interactive fan experiences to Lowe's stores and stadiums in select markets nationwide throughout the NFL season. The tour includes an EA SPORTS™ Madden NFL 27 station where fans can put their skills to the test and four new interactive activations featuring P&G Cleaning, Spruce, LG and EGO, along with free giveaways and exclusive gifts for MyLowe's Rewards members.

After an exciting inaugural year, Lowe's is leveling up its Sunday presence with a brand-new Football Night in America set, continuing its role as the presenting sponsor of NBC's iconic pregame show. The partnership will give fans a front-row seat to Earn Your Sunday every week, bringing it to life far beyond Lowe's stores and NFL stadiums, right into fans' homes.

NFL fans can learn more about Lowe's Earn Your Sunday and the Earn Your Sunday Tour while discovering the right products to complete their home improvement projects all season long at Lowes.com/NFL.

^NO PURCHASE NECESSARY. Open to legal residents of 50 US/DC, at least 18 years of age & age of majority in their state of residence, who are enrolled in MyLowe's Rewards loyalty program and PRO businesses registered & located in the U.S. that are enrolled in MyLowe's Pro Rewards loyalty program with authorized representative who is legal residents of 50 US/DC, 18+ years of age & age of majority in their state of residence at time of participation. Void where prohibited. Begins at 12:00:01 a.m. ET on 9/9/26 & ends at 11:59:59 p.m. ET on 1/10/27. For Official Rules, how to enter, odds, prize details and restrictions, visit Lowes.com/superbowlsweeps. Grand Prize requires credit card for hotel incidentals and use of mobile ticketing app. Message.& data rates may apply. Sponsor: Lowe's. The NFL Entities will have no liability or responsibility for any claim arising in connection with participation in the promotion or any prize awarded. The NFL Entities have not offered or sponsored the promotion in any way.

About Lowe's
Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 100 home improvement company with total fiscal year 2025 sales of more than $86 billion. Lowe's employs approximately 300,000 associates and operates over 1,750 home improvement stores, 540 branches and 120 distribution centers. Lowe's is a core value S&P 500 equity stock and a dividend aristocrat. Based in Mooresville, N.C., Lowe's supports the communities it serves through programs focused on creating safe, affordable housing, improving community spaces, helping to develop the next generation of skilled trade experts and providing disaster relief to communities in need. For more information, visit Lowes.com.

Media Contact
Amanda Caskey
Lowe's Companies, Inc.
[email protected]

SOURCE Lowe's Companies, Inc.

As employers across the country look for skilled workers, the Lowe's Foundation is backing a new effort aimed at creating more pathways into high-paying skilled trades careers that do not require a traditional four-year college degree.

Lowe's CEO Marvin Ellison joined "FOX & Friends" co-host Lawrence Jones on Wednesday to discuss the company's push to expand the skilled trades workforce and change perceptions around career paths outside a four-year degree.

Lowe’s is backing a new initiative aimed at expanding America’s skilled trades workforce and creating more pathways to high-paying careers without a four-year degree. (Tim Boyle / Getty Images)

Ellison said Lowe's is launching the "Building Futures Skilled Trades Coalition" with a goal of helping train and develop one million people for skilled trades careers by 2035, pointing to careers including plumbing, electrical work, welding and HVAC.

"These are great jobs. These are six-figure jobs... You don't need to get a four-year degree to have one of these incredible careers," Ellison said.

LOWE'S LAUNCHES MAJOR EFFORT TO HELP CLOSE AMERICA'S SKILLED TRADES GAP

The effort builds on work already underway through the Lowe's Foundation. Ellison said the foundation committed $250 million to help train and develop 250,000 tradespeople by 2035, but the scale of the workforce challenge requires broader participation.

He said the coalition has brought in companies including NVIDIA, Bank of America, General Motors and AT&T. The group plans to invest in training and credentialing programs, including those run by community colleges and nonprofits, while also helping connect people with open positions.

Ellison said part of the effort is about challenging the idea that a college degree is the only route to professional success.

META LAUNCHES $115M SKILLED TRADES ACADEMY WITH GUARANTEED JOBS FOR GRADUATES IN 4 STATES

"We're going to change the perception. That getting a four-year degree is the only way you can be successful in this country," Ellison said.

Ellison tied the initiative to his own background, noting that his father did not graduate from high school and describing his own path to becoming CEO of two Fortune 500 companies as an example of the American dream.

"Look man, I'm the middle child of seven kids, dad never graduated from high school, mother was the oldest of 16, and yet I've been the CEO of two Fortune 500 companies. It's totally the American dream," Ellison said.

TRUMP ADMINISTRATION SAYS BLUE-COLLAR WAGES RISING FASTEST IN MORE THAN 50 YEARS

He also warned that failing to address the skilled labor shortage could carry broader economic consequences, saying the country could face roughly 2.1 million unfilled skilled trades jobs by 2030 and potential economic losses of up to $1 trillion annually.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Key Takeaways Lowe's valuation discount is offset by softer DIY demand, housing pressure and reduced earnings guidance.Pro growth is expanding through FBM and ADG, adding fulfillment, digital tools and installation capabilities.Online sales rose 15.7%, while Home Services grew and MyLowe's Rewards topped 30 million members. Lowe's Companies, Inc. (LOW - Free Report) is trading at a discount to key benchmarks, but that discount comes with weaker near-term demand and earnings expectations. The central question is whether its expanding Pro platform can offset a still-cautious DIY customer.

Pro, online and Home Services are adding growth avenues, while soft housing activity and lower guidance limit near-term visibility. That mix creates a relative valuation discount, but timing remains important.

Lowe's Valuation Offers a Relative DiscountLOW trades at 16.1X forward 12-month earnings, below the Zacks sub-industry's 19.2X, the Zacks Retail-Wholesale sector's 22.7X and its five-year median of 17.5X. The gap gives investors a cheaper entry multiple than those reference points.

Image Source: Zacks Investment Research

The discount is not automatically a bargain. Lowe's fiscal 2026 adjusted earnings guidance was reduced to about $12.25 per share, while third-quarter adjusted earnings are expected to decline roughly 7% year over year. A lower multiple therefore partly reflects weaker near-term earnings momentum.

Pro Growth Gives LOW a Durable Demand EngineLowe's is broadening its Pro reach through Foundation Building Materials and Artisan Design Group. FBM adds faster fulfillment, digital tools, trade credit and cross-selling opportunities, while ADG expands design, distribution and installation capabilities for builders and property managers.

The Home Depot, Inc. (HD - Free Report) also reported positive Pro comparable sales that outperformed DIY in its second quarter, offering another sign that professional demand has held up better than DIY among major home-improvement retailers. For Lowe's, deeper capabilities with larger Pros could become more valuable as construction activity improves.

Digital and Services Broaden Lowe's UpsideOnline sales increased 15.7% in the second quarter, while Home Services delivered another quarter of growth. MyLowe's Rewards has more than 30 million members, giving Lowe's a larger base for targeted offers and repeat engagement.

Mylow is another conversion tool. Management said online shoppers who use the artificial intelligence shopping agent convert at three times the rate of those who do not. Better digital engagement, installation services and fulfillment can help Lowe's capture a larger share of project spending.

DIY and Housing Risks Keep LOW in CheckComparable transactions fell 2.1% in the second quarter as customers favored repair, maintenance and smaller projects over larger discretionary work. Lowe's reduced fiscal 2026 comparable-sales guidance to flat from its prior flat-to-up-2% range.

Housing weakness also limits the near-term payoff from expansion. ADG is fully exposed to residential construction, while about 45% of FBM is tied to that market. Builders FirstSource, Inc. (BLDR - Free Report) reported an 8.8% second-quarter sales decline, primarily due to lower housing starts and related headwinds, underscoring the pressure facing construction-linked demand.

Cash Flow Supports Lowe's Long-Term StrategyLowe's generated about $7 billion of operating cash flow in the first six months of fiscal 2026 and spent $1.1 billion on capital expenditures. It also paid $1.3 billion in dividends and repaid $2.4 billion of debt.

That liquidity supports continued investment without ignoring balance-sheet discipline. Lowe's ended the second quarter with $3.2 billion in cash and $5 billion of undrawn revolving-credit capacity, while management expects to reach its 2.75-times leverage target by mid-2027.

LOW's Mixed Signals Argue for PatienceLowe's relative valuation discount and expanding Pro, digital and services platforms support the long-term case, but weaker DIY demand, housing pressure and reduced earnings expectations keep the near-term risk-reward mixed.

LOW currently carries a Zacks Rank #4 (Sell). Its VGM Score of B, Growth Score of B and Momentum Score of B indicate favorable characteristics in those styles, while the Value Score of C is less favorable than the B grades. Because Zacks Style Scores are designed to complement rather than override the Zacks Rank, the current combination argues for patience until the earnings-estimate backdrop improves. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lowe's Companies (LOW +0.63%) recently reported its fiscal second-quarter results. This covered the period that ended on July 31. What do the company's sales and earnings tell us about the company's long-term growth prospects and total return potential? Let's take a closer look at the results.

Image source: Getty Images.

A look at the results There's no getting around it. Lowe's second-quarter sales were weak. Its same-store sales (comps) were essentially flat, growing a scant 0.2%. Management blamed the tepid sales result largely on macroeconomic pressures that have affected do-it-yourself homeowners' willingness to take on projects. Positively, sales to professional contractors, an area of focus, were strong.

In the near term, management doesn't expect sales growth to pick up. It now anticipates flat comps for the year, down from its previous expectation of 0% to 2%.

Still, shareholders can confidently rely on dividends. Lowe's has raised the payout annually for more than a quarter of a century. Most recently, it increased the quarterly dividend by more than 4% to $1.25 per share. At the new rate, Lowe's shares have a 2.3% dividend yield. That's more than double the S&P 500 index's 1.1% yield.

With investors concerned about recent results, the shares have lost value and underperformed the market. Lowe's stock lost 10.4% this year through Aug. 21. During this period, the S&P 500 gained 12.1%.

Premium Feature

Moneyball Superscore

70/100

Today's Change

(

0.63

%) $

1.31

Current Price

$

208.05

The downward price movement has created a better valuation, however. The price-to-earnings (P/E) ratio has dropped from 20 to 18 during this time. That's also lower than Lowe's 10-year median P/E of 21. Lowe's also has a much lower P/E multiple than the S&P 500's 30.

The company's relatively high dividend yield, strong history of raising payouts, and attractive valuation make Lowe's a buying opportunity.

Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Lowe's Companies. The Motley Fool has a disclosure policy.

Target and Lowe's both reported earnings on the same day while defending dividend streaks built over decades, but the balance sheets underneath those payouts tell very different stories about which one is actually safe.

Bank of New York Mellon Corp increased its position in shares of Lowe’s Companies, Inc. (NYSE:LOW – Free Report) by 1.4% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 4,104,782 shares of the home improvement retailer’s stock after acquiring an additional 57,167 shares during the quarter. Bank of New York Mellon Corp owned about 0.73% of Lowe’s Companies worth $905,063,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Brighton Jones LLC increased its holdings in shares of Lowe’s Companies by 119.7% during the fourth quarter. Brighton Jones LLC now owns 31,965 shares of the home improvement retailer’s stock valued at $7,889,000 after acquiring an additional 17,413 shares in the last quarter. Revolve Wealth Partners LLC boosted its stake in Lowe’s Companies by 31.6% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,078 shares of the home improvement retailer’s stock worth $266,000 after purchasing an additional 259 shares in the last quarter. Sivia Capital Partners LLC grew its position in Lowe’s Companies by 22.3% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,534 shares of the home improvement retailer’s stock worth $340,000 after purchasing an additional 280 shares during the last quarter. United Bank grew its position in Lowe’s Companies by 1.3% during the 2nd quarter. United Bank now owns 12,124 shares of the home improvement retailer’s stock worth $2,690,000 after purchasing an additional 155 shares during the last quarter. Finally, Schnieders Capital Management LLC. increased its stake in Lowe’s Companies by 13.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,378 shares of the home improvement retailer’s stock valued at $528,000 after purchasing an additional 275 shares in the last quarter. Hedge funds and other institutional investors own 74.06% of the company’s stock.

Lowe’s Companies Price Performance
Shares of LOW stock opened at $217.72 on Friday. Lowe’s Companies, Inc. has a 1-year low of $199.40 and a 1-year high of $293.06. The company has a market cap of $122.08 billion, a price-to-earnings ratio of 18.40, a PEG ratio of 2.85 and a beta of 0.86. The stock has a 50 day simple moving average of $216.13 and a 200-day simple moving average of $233.11.

Lowe’s Companies (NYSE:LOW – Get Free Report) last announced its earnings results on Wednesday, August 19th. The home improvement retailer reported $4.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.22 by $0.18. The business had revenue of $25.96 billion for the quarter, compared to analyst estimates of $26.13 billion. Lowe’s Companies had a net margin of 7.34% and a negative return on equity of 75.67%. The company’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same quarter last year, the business earned $4.33 earnings per share. Lowe’s Companies has set its FY 2026 guidance at 12.250-12.250 EPS. Analysts anticipate that Lowe’s Companies, Inc. will post 12.26 earnings per share for the current fiscal year.
Lowe’s Companies Increases Dividend
The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 5th. Investors of record on Wednesday, July 22nd were issued a $1.25 dividend. This represents a $5.00 annualized dividend and a yield of 2.3%. The ex-dividend date was Wednesday, July 22nd. This is a positive change from Lowe’s Companies’s previous quarterly dividend of $1.20. Lowe’s Companies’s payout ratio is presently 42.27%.

Wall Street Analysts Forecast Growth
A number of brokerages recently issued reports on LOW. HSBC reduced their target price on Lowe’s Companies from $260.00 to $220.00 and set a “hold” rating for the company in a research note on Thursday, May 21st. DA Davidson reissued a “neutral” rating and issued a $245.00 price objective on shares of Lowe’s Companies in a report on Wednesday. Weiss Ratings cut Lowe’s Companies from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday. Citigroup decreased their target price on Lowe’s Companies from $267.00 to $260.00 and set a “buy” rating for the company in a report on Thursday. Finally, Stifel Nicolaus decreased their target price on Lowe’s Companies from $270.00 to $220.00 and set a “hold” rating for the company in a report on Monday, May 18th. Twenty-three analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $259.37.

Get Our Latest Analysis on LOW

Trending Headlines about Lowe’s Companies
Here are the key news stories impacting Lowe’s Companies this week:

Positive Sentiment: Lowe’s reported adjusted EPS of $4.40, ahead of the $4.22 analyst consensus, while revenue increased 8.3% year over year to $25.96 billion. Comparable sales rose 0.2%, broadly matching expectations, and digital and Pro-customer growth provided support. Lowe’s Reports Second Quarter 2026 Sales and Earnings Results
Positive Sentiment: Several analysts remain bullish despite trimming their targets. Telsey Advisory reduced its target to $260 but maintained an “outperform” rating, while Truist, UBS, and KeyCorp retained “buy” or bullish ratings. Analysts cited potential acceleration in comparable sales during the second half and continued strategic progress. Analysts Revise Forecasts on Lowe’s After Q2 Earnings
Neutral Sentiment: Lowe’s received an approximately $80 million tariff refund, improving current-period results, but management said the benefit will not be used for price reductions. Because the refund is a one-time item, investors may place limited value on it for forecasting recurring earnings. Lowe’s Received an $80 Million Tariff Refund
Negative Sentiment: The company reset fiscal 2026 guidance to the low end of its prior range, calling for approximately $92 billion in revenue and $12.25 adjusted EPS, below consensus expectations of roughly $93.3 billion and $12.88 EPS. Management cited persistent weakness in discretionary do-it-yourself spending, elevated mortgage rates, and a soft housing market. Lowe’s Gives Muted Outlook
Negative Sentiment: UBS, Mizuho, and Telsey lowered their price targets following the results, reflecting reduced near-term earnings expectations. Lowe’s also continues to trail Home Depot on comparable-sales momentum, increasing concerns about market-share and product-mix disadvantages. Lowe’s Widens the Gap With Home Depot

Insiders Place Their Bets
In other Lowe’s Companies news, EVP Margrethe R. Vagell sold 2,500 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $223.83, for a total transaction of $559,575.00. Following the completion of the sale, the executive vice president directly owned 20,220 shares in the company, valued at approximately $4,525,842.60. The trade was a 11.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Janice Dupre sold 14,150 shares of the stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $221.90, for a total value of $3,139,885.00. Following the transaction, the executive vice president directly owned 39,785 shares of the company’s stock, valued at $8,828,291.50. The trade was a 26.24% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 25,980 shares of company stock worth $5,796,937. Corporate insiders own 0.29% of the company’s stock.

Lowe’s Companies Profile
(Free Report)

Lowe’s Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe’s also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.

Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.

Further Reading

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The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future

Want to see what other hedge funds are holding LOW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lowe’s Companies, Inc. (NYSE:LOW – Free Report).

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Wednesday, August 19 turned out to be a very interesting day for those who keep a close eye on earnings for major retailers. This is because both Lowe’s and Target reported their Q2 2026 results, with noticeably different end results. 

Key Takeaways:

Target and Lowe’s both reported their Q2 2026 earnings this week, with significantly different outcomes.
Lowe’s provided relatively muted annual guidance, while Target continued rocketing forward and surpassing sales expectations.
Target’s earnings cement the case for why targeted consumer staples exposure could be warranted, particularly through a vehicle like the State Street Consumer Staples Select Sector SPDR ETF (XLP).

Beginning with Lowe’s, the home improvement retailer brought in a relatively mixed earnings picture. For its Q2 2026 earnings, Lowe’s reported earnings per share of $4.40, which was above broad analyst expectations. However, revenue came in at $25.96, which was slightly  below expectations.

Where things got interesting is how Lowe’s treated its full-year guidance. The company did not cut its previous guidance, but did end up updating the outlook to the low end of its previous expectations. While Lowe’s was previously expecting sales to total between $92 billion and $94 billion, it is now slating total sales to sit at $92 billion this year. 

The picture for Lowe’s isn’t particularly drastic. As for why the company lowered its annual expectations a bit, that can chalked up to consumers holding off on some home improvement projects due to inflation. As such, the adjusted outlook should not be treated as a red flag, but merely the company being realistic about how its consumer base is doing. 

See More: Financial Sector ETF Hits Record High on Fintech Gains

Target Stays on Track for a Retail Comeback
Lowe’s may have had a more muted earnings report, but the same cannot be said for Target. The retailing giant’s Q2 2026 earnings report provided strong confidence for the greater investment community. 

Target’s net sales for the quarter rose 5.3% compared to last year’s numbers. Meanwhile, comparable sales grew by 3.8%, which was much higher than what Wall Street analysts had expected. 

That’s not all: Target also reported a $752 increase in net earnings through tariff refunds. Additionally, the retailer updated its full-year outlook, increasing its net sales growth guidance from 4% to 5%. 

“Over the past year, we’ve reduced prices on more than 10,000 frequently purchased items as part of our commitment to delivering outstanding value every day, while continuing to invest in newness, convenience, and an elevated shopping experience,” said Michael Fiddelke, Target CEO. “While there’s still meaningful work ahead, we’re encouraged by the progress we’re making and remain focused on executing with discipline, staying agile in a dynamic operating environment, and investing in our team and capabilities to drive sustainable, profitable growth over the long term.”

Time to Lean Into Consumer Staples?
Target’s breakout earnings serve as yet another reminder why the consumer staples sector may warrant targeted investment. Many consumer staples giants, like Target and Coca-Cola, are continuing to provide compelling results, showcasing how well these companies are adapting to today’s macroeconomic climate. 

The State Street Consumer Staples Select Sector SPDR ETF (XLP) can aid advisors and investors seeking more focused exposure to this sector. XLP invests in consumer staples companies within the S&P 500. This includes Target, which is a top ten holding for the fund, as of August 19, 2026. 

Proving the use case for consumer staples, XLP is seeing strong near-term and long-term results. Over the past month, the fund’s NAV rose 2.33%, as of July 31, 2026. Meanwhile, year to date, the fund is up 10.85%, as of the same date. 

For more news, information, and analysis, visit our Sector Investing Content Hub. 

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Lowe's (LOW - Free Report) .

Lowe's currently has an average brokerage recommendation (ABR) of 1.73, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 31 brokerage firms. An ABR of 1.73 approximates between Strong Buy and Buy.

Of the 31 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 64.5% and 3.2% of all recommendations.

Brokerage Recommendation Trends for LOW

Check price target & stock forecast for Lowe's here>>>

The ABR suggests buying Lowe's, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in LOW?In terms of earnings estimate revisions for Lowe's, the Zacks Consensus Estimate for the current year has declined 1.8% over the past month to $12.42.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Lowe's. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Lowe's with a grain of salt.

Home Depot and Lowe's are re-evaluated as macro conditions and retail sales weaken, particularly impacting home improvement demand. I updated my comparative framework, now weighing six variables, including tariff exposure and Pro vs. DIY mix, to assess HD versus LOW. Both HD and LOW have underperformed the market, with HD recently closing and surpassing LOW's performance gap by about 6 percentage points.

Lowe's Companies, Inc.'s Q2 results were mixed, with flat comp sales and cautious FY2026 guidance below market expectations. LOW's Pro segment outperformed, but ongoing macro headwinds and weak DIY demand limit near-term growth prospects. Valuation is unappealing; structural positives like Pro expansion and digital sales are offset by cyclical DIY softness and competitive pressures.

Lowe's Companies, Inc. (LOW) Q2 2027 Earnings Call August 19, 2026 9:00 AM EDT

Company Participants

Shelly Hubbard - Vice President of Investor Relations
Marvin Ellison - President, CEO & Chairman
William Boltz - Executive Vice President of Merchandising
Joseph McFarland - Executive Vice President of Stores
Brandon Sink - Executive VP & CFO

Conference Call Participants

Steven Forbes - Guggenheim Securities, LLC, Research Division
Katharine McShane - Goldman Sachs Group, Inc., Research Division
Christopher Horvers - JPMorgan Chase & Co, Research Division
Simeon Gutman - Morgan Stanley, Research Division
Gregory Melich - Evercore ISI Institutional Equities, Research Division
Brian Nagel - Oppenheimer & Co. Inc., Research Division
Seth Sigman - Barclays Bank PLC, Research Division
Christopher Nardone - BofA Securities, Research Division

Presentation

Operator

Good morning, everyone, and welcome to Lowe's Companies Second Quarter 2026 Earnings Conference Call. My name is Rob, and I'll be your operator for today's call. As a reminder, this conference is being recorded.

I'll now turn the call over to Shelly Hubbard, Vice President of Investor Relations.

Shelly Hubbard
Vice President of Investor Relations

Thank you, and good morning. Here with me today are Marvin Ellison, Chairman and Chief Executive Officer; Bill Boltz, our Executive Vice President, Merchandising; Joe McFarland, our Executive Vice President, Stores; and Brandon Sink, our Executive Vice President and Chief Financial Officer.

I would like to remind you that our notice regarding forward-looking statements is included in our press release this morning, which can be found on Lowe's Investor Relations website. During this call, we will be making comments that are forward-looking, including our expectations for fiscal 2026. Actual results may differ materially from those expressed or implied as a result of various risks, uncertainties and important factors, including those discussed in the risk factors, MD&A and other sections of our annual report on Form 10-K and our other SEC filings.

Lowe's Companies NYSE: LOW reported second-quarter sales of $26 billion, up 8.3% from a year earlier, as growth in its professional customer, online and home-services businesses helped offset continued pressure on discretionary do-it-yourself spending.

Lowe's (LOW) hit on EPS but missed on sales as guidance taps the low end of Wall Street estimates. Marley Kayden sets the foundation for investors by outlining key metrics in the report and discusses what's causing the company to reevaluate as U.S. consumers feel the pinch of inflation.

U.S. stocks traded higher midway through trading, with the Nasdaq Composite gaining around 100 points on Wednesday.

The Dow traded up 0.39% to 53,549.17 while the NASDAQ fell 0.40% to 26,396.03. The S&P 500 also rose, gaining, 0.50% to 7,729.89.

Leading and Lagging Sectors

Health care shares jumped by 3.9% on Wednesday.

In trading on Wednesday, information technology stocks fell by 1.2%.

Top Headline

Lowe’s Companies, Inc. (NYSE:LOW) stock gained around 5% on Wednesday after the home improvement retailer reported mixed second-quarter 2026 results and narrowed its full-year outlook below Wall Street estimates.

Adjusted earnings rose 1.6% to $4.40 per share from $4.33, beating the $4.22 analyst estimate. Net sales rose 8.3% to $25.96 billion from $23.96 billion a year earlier but missed the $26.16 billion estimate.

Equities Trading UP
           

Estee Lauder Companies Inc (NYSE:EL) shares shot up 16% to $98.08 after the company reported better-than-expected fourth-quarter financial results and issued its FY27 sales guidance with its midpoint above estimates. Shares of Tenon Medical Inc (NASDAQ:TNON) got a boost, surging 114% to $11.68 after the company received a notice of allowance for a U.S. Patent Titled “Systems, Apparatus and Methods for Stabilizing Sacroiliac Joints” Moderna Inc (NASDAQ:MRNA) shares were also up, gaining 145% to $154.04 after the company and Merck announced topline results from the Phase 3 INTerpath-001 trial met its primary and a key secondary endpoint. Latest Private Market Opportunities

Join 400,000+ Investors

Equities Trading DOWN

WhiteFiber Inc (NASDAQ:WYFI) shares dropped 26% to $20.00 after the company announced the pricing of its $250 million offering of convertible senior notes. Shares of Datavault AI Inc (NASDAQ:DVLT) were down 20% to $0.31 after the company reported worse-than-expected second-quarter financial results. The company announced it will acquire BankWyse. CID HoldCo Inc (NASDAQ:DAIC) was down, falling 31% to $0.44 after the company announced an additional Nasdaq listing deficiency and a loan default. Commodities

In commodity news, oil traded up 1.8% to $86.48 while gold traded up 2.4% at $4,525.50.

Silver traded up 2% to $65.340 on Wednesday, while copper fell 0.4% to $6.4680.

Euro zone

European shares were mixed today. The eurozone’s STOXX 600 rose 0.1%, while Spain’s IBEX 35 Index fell 0.2%, London’s FTSE 100 gained 0.2%, Germany’s DAX declined 0.2%, while France’s CAC 40 gained 0.1%.

Asia Pacific Markets

Asian markets closed mostly lower on Wednesday, with Japan’s Nikkei 225 dipping 3.16%, Hong Kong’s Hang Seng index gaining 0.09%, China’s Shanghai Composite dropping 2.40% and India’s BSE Sensex falling 0.42%.

Economics

The volume of mortgage applications fell by 0.4% in the second week of August. U.S. crude inventories surged by 4.405 million barrels to 428.8 million barrels in the week ended Aug. 14, recording a third straight weekly rise. Photo via Shutterstock

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Lowe's NYSE: LOW continues to face headwinds in 2026; however, the stock's value, capital returns, and long-term catalysts make for a compelling setup. Trading in the low $200s, LOW is near multi-year lows and at the bottom end of its historic price-to-earnings (P/E) range, setting the stage for a significant rebound.

Lowe's Companies Inc (NYSE:LOW) trimmed its full-year sales and profit forecasts after discretionary home-improvement spending remained under pressure, even as the retailer topped Wall Street estimates for the second quarter.

The company now expects fiscal 2026 revenue of $92 billion, down from its earlier range of $92 billion to $94 billion. Comparable sales are now seen flat for the year, compared with a prior forecast of flat to 2% growth.

Lowe's also lowered its adjusted profit outlook to roughly $12.25 per share, from a prior range of $12.25 to $12.75. Operating margin is now expected at 11.2%, versus a previous range of 11.2% to 11.4%, while adjusted operating margin is seen at 11.6%, down from 11.6% to 11.8%. Capital expenditure is expected at up to $2.5 billion.

For the second quarter, Lowe's reported revenue of $26 billion, up 8% from a year earlier, though short of analyst estimates of $26.16 billion. Adjusted earnings per share came in at $4.40, beating estimates of $4.22 and up 1.6% from the prior year.

Comparable sales rose 0.2% in the quarter, marking the company's fifth straight quarter of positive comps. Online sales grew 15.7%. Operating income rose 2% to $3.5 billion, in line with estimates of $3.53 billion, while gross margin stood at 33%. Net earnings totaled $2.4 billion.

The company operated 1,761 stores with 196 million square feet of retail selling space as of the end of the quarter.

"Sustained growth in Pro, Online and Home Services led to our fifth consecutive quarter of positive comp sales, despite pressure in discretionary DIY spending," said Marvin Ellison, Lowe's CEO.

"While the near-term remains dynamic, our teams are executing at a high level, advancing our Total Home strategy and investing to drive growth and profitability."

Shares of Lowe’s gained around 2.6% at the open on Wednesday.

— Diluted EPS of $4.27; Adjusted Diluted EPS1 of $4.40 —
— Comparable Sales Increased 0.2% —
— Updates Full Year 2026 Outlook —

, /PRNewswire/ -- Lowe's Companies, Inc. (NYSE: LOW) today reported net earnings of $2.4 billion and diluted earnings per share (EPS) of $4.27 for the quarter ended July 31, 2026, compared to diluted EPS of $4.27 in the second quarter of 2025. During the second quarter ended July 31, 2026, the company recognized $96 million in pre-tax expenses associated with the acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG). Excluding these expenses, second quarter 2026 adjusted diluted EPS1 increased 1.6% to $4.40 compared to the prior-year adjusted diluted EPS. Both diluted EPS and adjusted diluted EPS1 include an $0.11 benefit from IEEPA tariff refunds.

Total sales for the quarter were $26.0 billion, compared to $24.0 billion in the prior-year quarter. Comparable sales for the quarter increased 0.2%, driven by strong performance in Pro and home services sales, as well as a 15.7% increase in online sales, partially offset by persistent DIY macro pressures.

"Sustained growth in Pro, Online and Home Services led to our fifth consecutive quarter of positive comp sales, despite pressure in discretionary DIY spending," said Marvin R. Ellison, Lowe's chairman, president and CEO. "While the near-term remains dynamic, our teams are executing at a high level, advancing our Total Home strategy and investing to drive growth and profitability. I would like to thank all of our frontline associates for their hard work and dedication to our customers."

As of July 31, 2026, Lowe's operated 1,761 stores, representing 196.0 million square feet of retail selling space.

Capital Allocation

The company remains committed to generating sustainable shareholder value through a disciplined focus on its capital allocation program. During the quarter, the company paid $673 million in dividends.

1

Adjusted diluted earnings per share is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures Reconciliation" section of this release for additional information, as well as reconciliations between the company's GAAP and non-GAAP financial results.

Lowe's Business Outlook                                                                                                                             

The company is updating its outlook for fiscal year 2026 to reflect operational results for the first half of the year as well as current demand trends.

Fiscal year 2026 outlook also includes tariff refunds recognized during the second quarter and excludes any potential additional tariff refunds in the second half of the year.

Fiscal Year 2026 Outlook

Total sales of $92.0 billion (previously $92.0 to 94.0 billion) Comparable sales expected to be flat as compared to prior year (previously flat to up 2%) Operating income as a percentage of sales (operating margin) of 11.2% (previously 11.2% to 11.4%) Adjusted1 operating income as a percentage of sales (adjusted operating margin) of 11.6%
(previously 11.6% to 11.8%) Net interest expense of approximately $1.6 billion Effective income tax rate of approximately 24.5% Diluted earnings per share of approximately $11.75 (previously $11.75 to $12.25) Adjusted1 diluted earnings per share of approximately $12.25 (previously $12.25 to $12.75) Capital expenditures of up to $2.5 billion A conference call to discuss second quarter 2026 operating results is scheduled for today, Wednesday, August 19, at 9 a.m. ET. The conference call will be available by webcast and can be accessed by visiting Lowe's website at ir.lowes.com and clicking on Lowe's Second Quarter 2026 Earnings Conference Call Webcast. Supplemental slides will be available prior to the start of the conference call. A replay of the call will be archived at ir.lowes.com.

Lowe's Companies, Inc.                                                                                                                               

Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 100 home improvement company with total fiscal year 2025 sales of more than $86 billion. Lowe's employs approximately 300,000 associates and operates over 1,750 home improvement stores, 540 branches and 120 distribution centers. Lowe's is a core value S&P 500 equity stock and a dividend aristocrat. Based in Mooresville, N.C., Lowe's supports the communities it serves through programs focused on creating safe, affordable housing, improving community spaces, helping to develop the next generation of skilled trade experts and providing disaster relief to communities in need. For more information, visit Lowes.com.

Disclosure Regarding Forward-Looking Statements                                                                                    

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "believe", "expect", "anticipate", "plan", "desire", "project", "estimate", "intend", "will", "should", "could", "would", "may", "strategy", "potential", "opportunity", "outlook", "scenario", "guidance", and similar expressions are forward-looking statements.  Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives (including objectives related to environmental and social matters), business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services including customer acceptance of new offerings and initiatives, macroeconomic conditions and consumer spending, trade policy changes and additional tariffs and tariff refunds, share repurchases, and Lowe's strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. Such statements involve risks and uncertainties, and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements.

A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe's and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, age of housing stock, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, geopolitical or armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers.

Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in "Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law. 

LOW-IR

Contacts:           

Investor Inquiries:

Media Inquiries:

Shelly Hubbard

Steve Salazar

704-775-3856

[email protected] 

[email protected]              

Lowe's Companies, Inc.

Consolidated Statements of Current Earnings and Accumulated Deficit (Unaudited)

In Millions, Except Per Share and Percentage Data

Three Months Ended

Six Months Ended

July 31, 2026

August 1, 2025

July 31, 2026

August 1, 2025

Current Earnings

Amount

% Sales

Amount

% Sales

Amount

% Sales

Amount

% Sales

Net sales

$ 25,956

100.00

$ 23,959

100.00

$ 49,034

100.00

$ 44,888

100.00

Cost of sales

17,379

66.96

15,858

66.19

32,914

67.13

29,800

66.39

Gross margin

8,577

33.04

8,101

33.81

16,120

32.87

15,088

33.61

Expenses:

Selling, general and administrative

4,456

17.17

4,175

17.42

8,879

18.10

8,222

18.31

Depreciation and amortization

572

2.20

457

1.91

1,138

2.32

902

2.01

Operating income

3,549

13.67

3,469

14.48

6,103

12.45

5,964

13.29

Interest – net

374

1.44

313

1.31

773

1.58

650

1.45

Pre-tax earnings

3,175

12.23

3,156

13.17

5,330

10.87

5,314

11.84

Income tax provision

776

2.99

758

3.16

1,303

2.66

1,276

2.84

Net earnings

$   2,399

9.24

$    2,398

10.01

$    4,027

8.21

$    4,038

9.00

Weighted average common shares
     outstanding – basic

559

559

559

559

Basic earnings per common share (1)

$     4.28

$      4.28

$      7.18

$      7.21

Weighted average common shares
     outstanding – diluted

560

560

560

560

Diluted earnings per common share (1)     

$     4.27

$      4.27

$      7.17

$      7.19

Cash dividends per share

$     1.25

$      1.20

$      2.45

$      2.35

Accumulated Deficit

Balance at beginning of period

$  (9,884)

$ (13,833)

$ (10,839)

$ (14,799)

Net earnings

2,399

2,398

4,027

4,038

Cash dividends declared

(702)

(673)

(1,375)

(1,317)

Share repurchases

—

—

—

(30)

Balance at end of period

$  (8,187)

$ (12,108)

$   (8,187)

$ (12,108)

(1)       

Under the two-class method, earnings per share is calculated using net earnings allocable to common shares, which is derived by reducing net earnings by the earnings allocable to participating securities.  Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were $2,392 million and for the three months ended July 31, 2026, and $2,391 million for the three months ended August 1, 2025.  Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were $4,016 million for the six months ended July 31, 2026, and $4,027 million for the six months ended August 1, 2025.

Lowe's Companies, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

In Millions, Except Percentage Data

Three Months Ended

Six Months Ended

July 31, 2026

August 1, 2025

July 31, 2026

August 1, 2025

Amount

% Sales

Amount

% Sales

Amount

% Sales

Amount

% Sales

Net earnings

$   2,399

9.24

$   2,398

10.01

$   4,027

8.21

$   4,038

9.00

Cash flow hedges – net of tax     

(3)

(0.01)

(4)

(0.01)

(7)

(0.02)

(7)

(0.02)

Other

(1)

—

(1)

(0.01)

(2)

—

—

—

Other comprehensive loss

(4)

(0.01)

(5)

(0.02)

(9)

(0.02)

(7)

(0.02)

Comprehensive income

$   2,395

9.23

$   2,393

9.99

$   4,018

8.19

$   4,031

8.98

Lowe's Companies, Inc.

Consolidated Balance Sheets (Unaudited)

In Millions, Except Par Value Data

July 31, 2026

August 1, 2025

Assets

Current assets:

Cash and cash equivalents

$               3,172

$               4,860

Short-term investments

235

396

Receivables - net

1,238

320

Merchandise inventory - net

17,737

16,342

Other current assets

960

721

Total current assets

23,342

22,639

Property, less accumulated depreciation

18,276

17,708

Operating lease right-of-use assets

4,071

3,887

Long-term investments

179

273

Deferred income taxes - net

—

140

Intangible assets - net

5,709

976

Goodwill

3,957

691

Other assets

347

300

Total assets

$             55,881

$             46,614

Liabilities and shareholders' deficit

Current liabilities:

Current maturities of long-term debt

$               2,352

$               4,175

Current operating lease liabilities

733

536

Accounts payable

11,076

9,513

Accrued compensation and employee benefits

1,168

1,098

Deferred revenue

1,609

1,558

Other current liabilities

4,194

4,742

Total current liabilities

21,132

21,622

Long-term debt, excluding current maturities

35,204

30,548

Noncurrent operating lease liabilities

3,734

3,801

Deferred income taxes - net

1,201

—

Deferred revenue - Lowe's protection plans

1,253

1,283

Other liabilities

794

760

Total liabilities

63,318

58,014

Shareholders' deficit:

Preferred stock, $5 par value: Authorized - 5.0 million shares; Issued and outstanding -
     none

—

—

Common stock, $0.50 par value: Authorized - 5.6 billion shares; Issued and outstanding -     
     561 million and 561 million, respectively

281

280

Capital in excess of par value

207

147

Accumulated deficit

(8,187)

(12,108)

Accumulated other comprehensive income

262

281

Total shareholders' deficit

(7,437)

(11,400)

Total liabilities and shareholders' deficit

$             55,881

$             46,614

Lowe's Companies, Inc.

Consolidated Statements of Cash Flows (Unaudited)

In Millions

Six Months Ended

July 31, 2026

August 1, 2025

Cash flows from operating activities:

  Net earnings

$               4,027

$               4,038

  Adjustments to reconcile net earnings to net cash provided by operating activities:     

     Depreciation and amortization

1,292

1,022

     Noncash lease expense

338

267

     Deferred income taxes

165

70

Loss on property and other assets - net

15

30

     Share-based payment expense

132

117

     Changes in operating assets and liabilities:

Receivables - net

(157)

(22)

       Merchandise inventory – net

(436)

1,173

       Other operating assets

236

20

       Accounts payable

1,313

150

       Other operating liabilities

84

745

     Net cash provided by operating activities

7,009

7,610

Cash flows from investing activities:

     Purchases of investments

(808)

(845)

     Proceeds from sale/maturity of investments

1,079

827

     Capital expenditures

(1,063)

(1,013)

     Proceeds from sale of property and other long-term assets

8

7

     Acquisition of business - net

(5)

(1,314)

     Other – net

28

(5)

     Net cash used in investing activities

(761)

(2,343)

Cash flows from financing activities:

     Repayment of debt

(2,397)

(796)

Proceeds from issuance of common stock under share-based payment plans

71

70

     Cash dividend payments

(1,346)

(1,290)

     Repurchases of common stock

(366)

(113)

     Other – net

(20)

(39)

     Net cash used in financing activities

(4,058)

(2,168)

Net increase in cash and cash equivalents

2,190

3,099

Cash and cash equivalents, beginning of period

982

1,761

Cash and cash equivalents, end of period

$               3,172

$               4,860

Lowe's Companies, Inc.
Non-GAAP Financial Measure Reconciliation (Unaudited)

To provide additional transparency, the Company has presented the non-GAAP financial measure of adjusted diluted earnings per share for the three months ended July 31, 2026 and August 1, 2025.  This measure excludes the impact of certain items, further described below, to assist analysts and investors in understanding operational performance for the second quarter of fiscal 2026.

Fiscal 2026 Impacts
During fiscal 2026, the Company recognized financial impacts from the following:

In the second quarter of fiscal 2026, the Company recognized pre-tax expenses of $96 million consisting of intangible asset amortization related to the acquisitions of Artisan Design Group and Foundation Building Materials (Acquisitions of businesses). Fiscal 2025 Impacts
During fiscal 2025, the Company recognized financial impacts from the following:

In the second quarter of fiscal 2025, the Company recognized pre-tax expenses of $43 million consisting of transaction costs, purchase accounting adjustments, and intangible asset amortization related to the acquisition of Artisan Design Group (Acquisitions of businesses). In addition, the Company has presented full year fiscal 2026 guidance of the non-GAAP financial measures adjusted operating margin and adjusted diluted earnings per share, which exclude the impact of intangible asset amortization, and related tax effects if applicable, related to the acquisitions of Foundation Building Materials and Artisan Design Group. When evaluated with our GAAP results, we believe these non-GAAP measures provide investors with meaningful measures of comparable performance.

Adjusted operating margin and adjusted diluted earnings per share should not be considered an alternative to, or more meaningful indicator of, the Company's operating margin or diluted earnings per share as prepared in accordance with GAAP. The Company's methods of determining non-GAAP financial measures may differ from the method used by other companies and may not be comparable.

A reconciliation between the Company's GAAP and non-GAAP financial results is shown below and available on the Company's website at ir.lowes.com.

Three Months Ended

July 31, 2026

August 1, 2025

Adjusted Diluted Earnings Per Share

Pre-Tax
Earnings

Tax 1

Net
Earnings

Pre-Tax
Earnings

Tax 1

Net
Earnings

Diluted Earnings Per Share, As Reported

$    4.27

$    4.27

Acquisitions of businesses

0.17

(0.04)

0.13

0.08

(0.02)

0.06

Adjusted Diluted Earnings Per Share

$    4.40

$    4.33

1   

Represents the corresponding tax benefit or expense specifically related to the item excluded from adjusted diluted earnings per share.

Our adjusted operating margin and adjusted diluted earnings per share guidance for fiscal 2026 excludes an expected 40 basis points and $0.50 after tax impact, respectively, from intangible asset amortization.

SOURCE Lowe's Companies, Inc.

Lowe's lowered its expectations for 2026 as persistent softness in DIY spending is expected to continue to weigh on sales and earnings for the rest of the year.

Characteristics and Risks of Standardized Options: https://bit.ly/2v9tH6D. Lowe's (LOW) reports earnings before the open Wednesday as its peers face key tests in their own earnings.

Key Takeaways Lowe's Q2 revenue estimate is $26.14B, up 9.1%, while EPS is seen falling 2.5% to $4.22.Pro, online, home services and productivity initiatives could support Lowe's second-quarter sales.Weak discretionary DIY demand, housing pressure and elevated costs remain key concerns for Lowe's. As Lowe's Companies, Inc. (LOW - Free Report) prepares to unveil its second-quarter fiscal 2026 earnings on Aug. 19, before the opening bell, investors are eager to see if the company can beat market expectations.

The Zacks Consensus Estimate for revenues stands at $26.14 billion, implying 9.1% growth from the prior year. Meanwhile, the consensus mark for earnings per share has fallen by a penny to $4.22 over the past seven days, which suggests a 2.5% decline from the year-ago period.

LOW has a trailing four-quarter earnings surprise of 2.3%, on average. In the last reported quarter, this Mooresville, NC-based company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 2.4%.

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What the Zacks Model Says About LOW’s Q2 EarningsAs investors prepare for Lowe’s second-quarter results, the question looms regarding an earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Lowe’s this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.

Lowe’s has a Zacks Rank #4 (Sell) and an Earnings ESP of -0.91%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Key Factors to Observe Ahead of LOW's Q2 EarningsLowe’s second-quarter performance is likely to have benefited from sustained demand, backed by focused merchandising and promotional execution. The company entered the quarter with strength in lawn and garden and other outdoor categories and planned to keep value and innovation at the center of its offers. A broad assortment of leading brands, healthy in-stock positions and convenient delivery options may have helped Lowe’s convert seasonal traffic across stores and digital channels. Management also highlighted the continued rollout of workwear and pet assortments, which could have provided an incremental sales opportunity during the quarter.

We believe continued momentum in Lowe’s Total Home strategy may also have supported the quarter. The Pro business remained a key area of strength, with small- and medium-sized professional customers continuing to engage in repair and maintenance projects despite the difficult housing backdrop. Investments in Pro Extended Aisle, localized assortments, improved fulfillment and digital tools have expanded the company’s ability to serve these customers while simplifying the purchasing process. At the same time, enhancements to online shopping, same-day delivery and the MyLowe’s loyalty platforms are likely to have encouraged customers.

Home services and operational improvements may have provided another layer of support. Lowe’s continued to gain traction with installation and replacement projects, particularly in categories where customers value speed, convenience and professional service. Appliances also remained well positioned because of the company’s broad brand assortment, omnichannel capabilities and fast delivery and installation network. Productivity initiatives across stores and the supply chain — including AI-enabled associate tools, faster replenishment and efforts to improve product availability — may have helped Lowe’s maintain service levels and capture demand more efficiently. The integration of Foundation Building Materials and Artisan Design Group also offered opportunities for procurement efficiencies and cross-selling while extending Lowe’s reach with professional and construction customers.

That said, Lowe’s is likely to have continued to face pressure from the broader home improvement environment. Elevated interest rates, high housing costs and subdued housing turnover have kept DIY demand under strain, particularly for larger discretionary projects, while lower-income consumers have remained cautious. These demand challenges were compounded by cost pressures, including higher transportation expenses and inflation in fuel and commodity-based products.

LOW Stock Price PerformanceLowe’s, which competes with The Home Depot, Inc. (HD - Free Report) and Floor & Decor Holdings, Inc. (FND - Free Report) , has seen its shares decline 0.6% over the past three months against the industry’s rise of 9.6%. Shares of Home Depot and Floor & Decor Holdings have advanced 12.1% and 28%, respectively.
 

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Does LOW Present a Strong Case for Value Investing?Lowe’s valuation remains discounted relative to the industry. The stock currently trades at a forward 12-month P/E multiple of 16.64, below the industry average of 19.63. LOW is also trading below its own 12-month median P/E of 18.66, suggesting that the stock remains attractively valued relative to the industry and its recent historical range.

Lowe’s is trading at a discount to Home Depot (with a forward 12-month P/E ratio of 21.59) and Floor & Decor (26.24).

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Final Words on Lowe’s StockLowe’s enters the second-quarter earnings release with a mixed setup. Strength in Pro, online, home services and ongoing productivity initiatives could support sales, while its relatively attractive valuation may appeal to long-term investors. However, persistent weakness in discretionary DIY demand, housing-market pressures and elevated operating costs remain meaningful concerns. More importantly, the current earnings setup does not point convincingly toward an earnings beat, which limits the case for taking an aggressive position ahead of the report.

Both Target (NYSE:TGT | TGT Price Prediction) and Lowe's (NYSE:LOW) step into the earnings spotlight before the open on Wednesday, August 19, 2026, delivering the rare same-session read on the U.S.