Lowes Companies 2026 Q1 Earnings Misses Targets as Net Income Falls 6.5%

Lowe's Companies (LOW), ranking 104th by market capitalization, reported its fiscal 2026 Q1 earnings on May 20th, 2025. The results fell short of expectations, with revenue declining 2.0% and EPS dropping to $2.93 from $3.06 in the previous year. Despite these challenges, the company maintained its full-year 2025 guidance, projecting total sales between $83.5 billion and $84.5 billion. Lowe's also affirmed that its operating income as a percentage of sales will range from 12.3% to 12.4%, with diluted EPS expected to be approximately $12.15 to $12.40.

Revenue

Earnings/Net Income
Lowe's Companies' EPS declined 4.2% to $2.93 in 2026 Q1 from $3.06 in 2025 Q1. Meanwhile, the company's net income declined to $1.64 billion in 2026 Q1, down 6.5% from $1.75 billion reported in 2025 Q1. Remarkably, the company has sustained profitability for more than 20 years over the corresponding fiscal quarter, underscoring strong operational resilience. The EPS decline reflects the company's struggle to maintain profitability amidst challenging market conditions.

Post-Earnings Price Action Review
The strategy of purchasing Lowe's Companies (LOW) shares after a quarterly revenue drop on the earnings release date and holding for 30 days yielded a 41.72% return. This performance slightly trailed the benchmark's 44.88% return over the same period. The strategy achieved a compound annual growth rate of 12.45%, with a maximum drawdown of -32.36% and a Sharpe ratio of 0.42, indicating moderate returns and associated risks. Despite the revenue dip, this approach demonstrated potential for gains, albeit with some volatility.

CEO Commentary

Guidance

Additional News
In recent developments, Lowe's Companies announced plans to acquire Artisan Design Group for $1.325 billion, aiming to expand its design and installation services. Additionally, the company launched an AI-powered virtual advisor, Mylow, to enhance customer service and streamline associate training. Furthermore, Lowe's committed $2 million to support wildfire relief efforts in California, reinforcing its dedication to community engagement and disaster response. These strategic initiatives reflect Lowe's focus on innovation and social responsibility, aligning with its broader business objectives.