Lowe's Q2 sales slightly miss estimates; lowers FY guidance amid DIY weakness

Lowe's Companies

19/08/2026 11:11

Overview
U.S. home improvement retailer's Q2 sales slightly missed analyst expectations, adjusted EPS beat
Comparable sales grew 0.2%, driven by Pro and home services, offset by DIY weakness
Company updated full-year 2026 outlook, narrowing sales and adjusted EPS guidance to the low end of prior ranges

Outlook
Lowe's sees FY 2026 total sales of $92.0 bln, down from $92.0-$94.0 bln prior
Company expects FY 2026 comparable sales to be flat vs prior year, was flat to up 2%
Lowe's projects FY 2026 adjusted diluted EPS of about $12.25, down from $12.25-$12.75

Result Drivers
PRO AND HOME SERVICES - Co said strong sales to professional customers and home services drove comp sales growth
ONLINE SALES - Co reported a 15.7% increase in online sales, contributing to comp sales growth
DIY PRESSURES - Persistent macroeconomic pressures continued to weigh on discretionary DIY spending, per CEO Marvin Ellison

Company press release: ID:nPn1VpfQda

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Miss*
$25.96 bln
$26.16 bln (25 Analysts)
Q2 Adjusted EPS
Beat
$4.40
$4.22 (27 Analysts)
Q2 EPS
 
$4.27
 
Q2 Net Income
 
$2.4 bln
 
Q2 Comparable Sales Growth
 
0.2%
 
Q2 Operating Income
 
$3.55 bln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 25 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the home improvement products & services retailers peer group is "buy"
Wall Street's median 12-month price target for Lowe's Companies Inc is $264.50, about 22.7% above its August 18 closing price of $215.64
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads
Aug 18 - Home Depot Q2 sales beat estimates on broad-based demand
Aug 18 - Toll Brothers Q3 results fall on lower deliveries
Aug 17 - US home builder sentiment ticks up in August but remains weak overall

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)