Lowes Companies 2026 Q2 Earnings Sustained Profitability with Net Income Up 0.6%

Lowe's Companies reported earnings that exceeded expectations for the second quarter, with revenue rising 1.6% year-over-year. The company raised its full-year sales outlook, reflecting confidence in its updated guidance. Management signaled cautious optimism, emphasizing the impact of weather on sales trends and the importance of lower mortgage rates for future growth.

Revenue
Lowe's Q2 2026 revenue reached $23.96 billion, up 1.6% compared to $23.59 billion in the same period the previous year. Segment performance was robust across the board: Home Décor contributed $8.36 billion, Hardlines totaled $7.82 billion, and Building Products accounted for $7.08 billion. Additional revenue of $699 million came from the "Other" category, rounding out the total.

Earnings/Net Income
Earnings per share (EPS) grew by 2.4% to $4.28 in Q2 2026 from $4.18 in Q2 2025, while net income increased slightly by 0.6% to $2.40 billion from $2.38 billion. This reflects the company’s long-standing profitability, with consistent performance for over 20 years during the corresponding fiscal quarter. The sustained EPS growth indicates a positive trend in operational efficiency and financial resilience.

Price Action
Lowe's stock price experienced mixed short-term performance, dropping 0.64% on the latest trading day but rising 0.74% for the week. Over the month, shares surged 11.95%, reflecting investor confidence in the company’s earnings momentum and updated guidance.

Post-Earnings Price Action Review
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CEO Commentary
Marvin R. Ellison, Lowe's Chairman, President, and CEO, credited the strong Pro and DIY performance for the quarter’s positive comp sales. He acknowledged early weather challenges but emphasized team resilience and improved profitability. Ellison also highlighted the strategic acquisition of Artisan Design Group as a key factor in enhancing Pro customer engagement and expanding into new home construction. Looking ahead, he expressed cautious optimism, noting the need for mortgage rates to fall below 6% for sustained activity.

Guidance
Lowe’s raised its full-year 2025 outlook, projecting total sales of $84.5 to $85.5 billion, up from the previous $83.5 to $84.5 billion. The company now expects comparable sales to increase by up to 1%. Operating margin is expected to range from 12.1% to 12.2%, while adjusted operating margin is forecasted at 12.2% to 12.3%. Diluted EPS is projected at $12.10 to $12.35, with adjusted diluted EPS between $12.20 and $12.45. Capital expenditures for the year are anticipated to be approximately $2.5 billion.

Additional News
Lowe’s executed a $1.3 billion acquisition of Artisan Design Group, a strategic move to enhance its Pro business and expand into new home construction. The company also distributed $645 million in dividends during the quarter, underscoring its commitment to disciplined capital allocation. These actions reflect a balanced approach to both growth and shareholder returns, with the ADG acquisition expected to have a material impact on the company’s adjusted financial metrics.