Lowes Companies LOW 2026Q1 Earnings Preview Downside Ahead on Declining EPS Forecast

Forward-Looking Analysis
Lowe's Companies is scheduled to release its Q1 2026 earnings on May 21st, 2025. Analysts project the company will report earnings of $2.89 per share, marking a 5.6% decline compared to the previous year's same quarter. Despite a trailing EPS of $12.21 and a P/E ratio of 19.38, the market anticipates a challenging quarter influenced by ongoing tariff impacts and reduced sales from DIY customers. For the fiscal year 2025, Lowe's has guided total sales between $83.5 billion and $84.5 billion, with comparable sales growth expected to be flat to 1%. Operating margins are predicted to range from 12.3% to 12.4%. The company's diluted earnings per share for the year are projected to be approximately $12.15 to $12.40. The combination of these factors suggests a cautious outlook for Lowe's in the upcoming quarter.

Historical Performance Review
In the fourth quarter of 2025, Lowe's Companies reported revenue of $18.55 billion and a net income of $1.12 billion. Earnings per share were recorded at $2.00, with a gross profit of $6.10 billion. These results reflect the company's ongoing efforts to navigate market challenges, with earnings slightly under pressure compared to previous performances.

Additional News
Lowe's has been focusing on several strategic initiatives, including sales growth, pro-focused initiatives, and online expansion, as highlighted in their Q4 2024 earnings call. The company anticipates maintaining its sales forecast for 2025, ranging from $83.5 billion to $84.5 billion, despite challenges from the DIY sector. The impact of tariffs on the company's performance remains uncertain, but efforts to boost sales through seasonal demand and spring projects are underway. Lowe's has not announced any major mergers or acquisitions recently, nor significant changes in leadership. The company continues to concentrate on enhancing its market position by adapting to consumer trends and external economic factors.

Summary & Outlook
Lowe's Companies displays a steady financial position with a robust revenue base but faces headwinds from declining EPS and tariff-related pressures. The flat to modest sales growth and stable operating margins indicate a neutral to bearish outlook for the near term. The company's strategic focus on pro-focused initiatives and online expansion could serve as growth catalysts if executed effectively. However, the ongoing challenges from DIY market dynamics and external economic factors may hinder substantial growth. Overall, while Lowe's maintains a solid foundation, cautious optimism is advised until clearer market trends emerge.