Lowe’s Companies (NYSE:LOW) Releases Earnings Results, Beats Expectations By $0.18 EPS

Lowe’s Companies (NYSE:LOW) released its quarterly earnings data on Wednesday. The home improvement retailer reported $4.40 earnings per share for the quarter, topping the consensus estimate of $4.22 by $0.18, Zacks reports. 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 7.51% and a negative return on equity of 67.96%. Lowe’s Companies’s quarterly revenue was up 8.3% compared to the same quarter last year. During the same quarter last year, the firm earned $4.33 EPS. Lowe’s Companies updated its FY 2026 guidance to 12.250-12.250 EPS.

Here are the key takeaways from Lowe’s Companies’ conference call:

• Second-quarter sales rose 8.3% to $26 billion, while comparable sales increased 0.2%, marking Lowe’s fifth consecutive quarter of positive comps. Strength in Pro, online, and home services offset softer DIY demand, unfavorable weather, and macroeconomic uncertainty.
• Pro sales continued to grow, particularly among small and medium-sized contractors, while online sales increased 15.7%. Lowe’s said its MyLowe AI tool has supported more than 25 million questions and produces a threefold higher conversion rate among users.
• Lowe’s generated $3.1 billion in free cash flow during the quarter and returned $673 million through dividends. Productivity initiatives helped offset higher fuel, transportation, energy, and other input costs, supporting better-than-expected earnings flow-through.
• Management lowered its full-year outlook to the bottom end of its prior range, calling for approximately $92 billion in sales, roughly flat comparable sales, a 11.6% adjusted operating margin, and adjusted EPS of about $12.25. Third-quarter adjusted EPS is expected to decline approximately 7% year over year, with ongoing DIY weakness, residential construction pressure, and higher transportation costs weighing on results.
• Competitors used tariff refunds to fund aggressive promotions in seasonal categories such as grills, patio, and live goods, contributing to Lowe’s weaker July performance. Management views the pressure as temporary and said it will remain disciplined rather than match unprofitable promotions.

Lowe’s Companies Stock Up 2.4%

Shares of LOW stock opened at $220.74 on Thursday. The firm has a fifty day moving average of $216.21 and a 200-day moving average of $233.46. Lowe’s Companies has a 12-month low of $199.40 and a 12-month high of $293.06. The company has a market capitalization of $123.77 billion, a price-to-earnings ratio of 18.66, a P/E/G ratio of 2.76 and a beta of 0.86.

Lowe’s Companies Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, August 5th. Stockholders of record on Wednesday, July 22nd were given a dividend of $1.25 per share. This is a positive change from Lowe’s Companies’s previous quarterly dividend of $1.20. This represents a $5.00 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Wednesday, July 22nd. Lowe’s Companies’s payout ratio is currently 42.27%.

Lowe’s Companies News Roundup

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

• Positive Sentiment: Lowe’s reported adjusted EPS of $4.40, above the $4.22 analyst consensus, while revenue increased 8.3% year over year to $25.96 billion. Gross-margin performance and disciplined execution also supported the bullish reaction. Lowe’s Second-Quarter Results
• Positive Sentiment: Management highlighted strength in professional customers, online sales and home services, while investors saw the company’s “Total Home” strategy and potential housing recovery as longer-term catalysts. Smaller home projects may also benefit from homeowners staying in place longer. Home Improvement Industry Recovery
• Neutral Sentiment: DA Davidson reaffirmed a Neutral rating but set a $245 price target, implying potential upside from recent levels. Other commentary described Lowe’s as a stock to watch while investors wait for clearer evidence of a housing and discretionary-spending recovery. DA Davidson Rating
• Negative Sentiment: Comparable sales rose only 0.2%, below the roughly 0.8% expected, and revenue missed estimates. Persistent pressure on discretionary DIY spending—especially larger renovation projects—remains the primary concern. Lowe’s Muted Outlook
• Negative Sentiment: Lowe’s lowered fiscal 2026 guidance to the bottom of its prior range: approximately $92 billion in revenue and $12.25 adjusted EPS, below consensus estimates of about $93.3 billion and $12.88, respectively. The earnings beat was helped partly by tariff refunds, raising concerns about its underlying durability. Lowe’s Earnings Beat and Lower Outlook
• Negative Sentiment: Analysts noted that Lowe’s is losing ground to Home Depot, whose stronger comparable-sales performance suggests a share and product-mix disadvantage rather than a broad industry recovery. Elevated mortgage rates continue to discourage expensive renovations. Lowe’s and Home Depot Comparison

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on LOW shares. Weiss Ratings lowered shares of Lowe’s Companies from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday. Telsey Advisory Group lowered their price objective on shares of Lowe’s Companies from $295.00 to $280.00 and set an “outperform” rating for the company in a research report on Thursday, May 21st. KeyCorp dropped their price objective on Lowe’s Companies from $300.00 to $275.00 and set an “overweight” rating on the stock in a research note on Thursday, May 21st. BNP Paribas Exane reduced their target price on Lowe’s Companies from $228.00 to $202.00 and set an “underperform” rating on the stock in a report on Thursday, May 21st. Finally, Morgan Stanley decreased their target price on Lowe’s Companies from $292.00 to $277.00 and set an “overweight” rating for the company in a research note on Thursday, May 21st. Twenty-three research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Lowe’s Companies has a consensus rating of “Moderate Buy” and an average price target of $261.63.

Insider Activity at Lowe’s Companies

In other Lowe’s Companies news, EVP Janice Dupre sold 14,150 shares of the stock in a transaction dated 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 represents a 26.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Margrethe R. Vagell sold 2,500 shares of Lowe’s Companies stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $223.83, for a total value of $559,575.00. Following the completion of the sale, the executive vice president directly owned 20,220 shares in the company, valued at $4,525,842.60. This represents a 11.00% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 25,980 shares of company stock valued at $5,796,937. 0.29% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of LOW. Price T Rowe Associates Inc. MD boosted its holdings in shares of 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 buying an additional 2,039,343 shares during the last quarter. Viking Global Investors LP bought a new position in shares of Lowe’s Companies during the fourth quarter worth approximately $219,948,000. Worldquant Millennium Advisors LLC lifted its holdings in shares of Lowe’s Companies by 243.2% during the second quarter. Worldquant Millennium Advisors LLC now owns 1,116,945 shares of the home improvement retailer’s stock worth $247,817,000 after buying an additional 791,526 shares in the last quarter. Amundi raised its stake in Lowe’s Companies by 32.4% in the 4th quarter. Amundi now owns 1,876,570 shares of the home improvement retailer’s stock worth $452,554,000 after purchasing an additional 459,650 shares in the last quarter. Finally, AQR Capital Management LLC raised its position in shares of Lowe’s Companies by 191.8% in the third quarter. AQR Capital Management LLC now owns 656,222 shares of the home improvement retailer’s stock valued at $164,915,000 after buying an additional 431,304 shares in the last quarter. 74.06% of the stock is currently owned by institutional investors.

About Lowe’s Companies

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.