Lowe’s Companies (NYSE:LOW) Announces Quarterly Earnings Results

Lowe’s Companies (NYSE:LOW) announced its quarterly earnings data on Wednesday. The home improvement retailer reported $4.40 EPS for the quarter, beating the consensus estimate of $4.22 by $0.18, Zacks reports. Lowe’s Companies had a net margin of 7.34% and a negative return on equity of 75.67%. The business had revenue of $25.96 billion during the quarter, compared to analysts’ expectations of $26.13 billion. During the same period in the previous year, the business posted $4.33 EPS. The business’s quarterly revenue was up 8.3% compared to the same quarter last year. 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 Performance

Shares of NYSE LOW opened at $217.72 on Friday. The firm has a market cap of $122.08 billion, a PE ratio of 18.40, a PEG ratio of 2.85 and a beta of 0.86. The firm has a fifty day moving average of $216.13 and a 200 day moving average of $233.11. Lowe’s Companies has a one year low of $199.40 and a one year high of $293.06.

Lowe’s Companies Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, August 5th. Investors of record on Wednesday, July 22nd were paid a $1.25 dividend. The ex-dividend date of this dividend was Wednesday, July 22nd. This represents a $5.00 dividend on an annualized basis and a yield of 2.3%. This is an increase from Lowe’s Companies’s previous quarterly dividend of $1.20. Lowe’s Companies’s dividend payout ratio is 42.27%.

Insider Buying and Selling at Lowe’s Companies

In other news, EVP Juliette Williams Pryor sold 9,330 shares of Lowe’s Companies stock in a transaction dated Wednesday, June 17th. The shares were 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 in the company, valued at $3,628,883.02. This trade represents a 36.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Janice Dupre sold 14,150 shares of the company’s 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 transaction, the executive vice president owned 39,785 shares of the company’s stock, valued at approximately $8,828,291.50. This trade represents a 26.24% decrease in their position. 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 ninety days. Corporate insiders own 0.29% of the company’s stock.

Institutional Investors Weigh In On Lowe’s Companies

A number of large investors have recently modified their holdings of the business. Mcguire Capital Advisors Inc. purchased a new position in shares of Lowe’s Companies in the fourth quarter worth about $62,000. Compound Planning Inc. raised its holdings in Lowe’s Companies by 20.2% in the 4th quarter. Compound Planning Inc. now owns 10,911 shares of the home improvement retailer’s stock valued at $2,631,000 after acquiring an additional 1,836 shares during the last quarter. Axxcess Wealth Management LLC raised its holdings in shares of Lowe’s Companies by 16.1% during the 4th quarter. Axxcess Wealth Management LLC now owns 20,760 shares of the home improvement retailer’s stock worth $5,007,000 after acquiring an additional 2,876 shares during the period. Corient Private Wealth LLC grew its holdings in shares of Lowe’s Companies by 56.1% in the fourth quarter. Corient Private Wealth LLC now owns 421,376 shares of the home improvement retailer’s stock valued at $101,619,000 after purchasing an additional 151,396 shares during the period. Finally, Blue Sparrow LLC DE acquired a new stake in Lowe’s Companies during the fourth quarter worth about $15,350,000. Hedge funds and other institutional investors own 74.06% 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 reported fiscal Q2 EPS of $4.40, above the $4.22 analyst consensus, while revenue increased 8.3% year over year to approximately $25.96 billion. Digital sales and Pro-customer growth provided additional support. Lowe’s Q2 Earnings Beat Estimates
• Positive Sentiment: Several analysts remain constructive despite reducing price targets after earnings. UBS, KeyCorp, Truist and Mizuho maintained buy or overweight-equivalent ratings, with targets ranging from $250 to $275. Telsey also retained an outperform rating with a $260 target. Analysts Revise Lowe’s Forecasts
• Positive Sentiment: The company plans a $10.5 million store near Joint Base San Antonio-Randolph, expanding its footprint into Converse, Texas. Lowe’s Plans Store Near Joint Base San Antonio-Randolph
• Neutral Sentiment: Lowe’s received an approximately $80 million tariff refund, but management indicated the benefit will not be used for price cuts, limiting its direct effect on consumer demand. Lowe’s Receives Tariff Refund
• Neutral Sentiment: DA Davidson reaffirmed a Neutral rating with a $245 price target, while TD Cowen and RBC maintained Hold or Sector Perform ratings. The mixed analyst stance suggests valuation support but limited conviction. DA Davidson Reaffirms Neutral Rating
• Negative Sentiment: Lowe’s narrowed fiscal 2026 guidance to the low end, including roughly $92 billion in sales, as consumers delay costly renovations. Comparable sales rose only 0.2%, below expectations, and management cited weak DIY demand and housing headwinds. Lowe’s Narrows Fiscal 2026 Guidance
• Negative Sentiment: Investors also noted Lowe’s weaker performance relative to Home Depot, which has shown stronger comparable-sales momentum, potentially indicating share or product-mix pressure. Lowe’s Widens Gap With Home Depot
• Negative Sentiment: Unusually heavy put-option activity signals increased bearish hedging or speculation. Traders purchased 13,724 puts, 62% above average volume. Traders Buy Lowe’s Put Options

Analyst Upgrades and Downgrades

A number of research firms have weighed in on LOW. DA Davidson reiterated a “neutral” rating and set a $245.00 price objective on shares of Lowe’s Companies in a research note on Wednesday. BTIG Research cut Lowe’s Companies to a “reduce” rating in a research report on Tuesday, May 12th. JPMorgan Chase & Co. lowered their price objective on Lowe’s Companies from $279.00 to $252.00 and set an “overweight” rating on the stock in a research report on Friday, July 31st. Jefferies Financial Group cut their target price on shares of Lowe’s Companies from $305.00 to $278.00 and set a “buy” rating for the company in a report on Thursday, May 21st. Finally, KeyCorp reissued an “overweight” rating and set a $275.00 price target on shares of Lowe’s Companies in a report on Thursday. Twenty-three investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $259.37.

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.