TLDR
- Lowe’s posted Q1 adjusted EPS of $3.03, beating the $2.97 estimate, with revenue of $23.08B topping forecasts
- Comparable sales rose 0.6%, helped by 15.5% online sales growth and strength in appliances, Pro, and home services
- Full-year adjusted EPS guidance of $12.25–$12.75 has a midpoint of $12.50, below the analyst consensus of $12.59
- LOW stock fell roughly 2.9% despite the earnings beat, as investors focused on the guidance miss
- CEO Marvin Ellison flagged a “challenging housing macro” while reaffirming the company’s Total Home strategy
Lowe’s posted a solid first quarter, beating Wall Street on both earnings and revenue. But the stock still dropped — because the guidance told a different story.
$LOW Q1’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $23.08B (Est $22.88B) 🟢
🔹 EPS: $3.03 (Est $2.97) 🟢FY26 Guide:
🔹 Revenue: $92B-$94B (Est $93.07B) 🟡
🔹 EPS: $12.25-$12.75 (Est $12.59) 🟡— Wall St Engine (@wallstengine) May 20, 2026
LOW fell around 2.9% after the results came out, settling near $213 after hours.
The company reported adjusted diluted EPS of $3.03 for the quarter ended May 1, ahead of the $2.97 analyst estimate. Revenue came in at $23.08 billion, up 10.4% year over year and above the $22.97 billion consensus.
Comparable sales rose 0.6% in the quarter. Online sales led the way, up 15.5%. Appliances, home services, and Pro sales also contributed.
Net income was $1.63 billion, or $2.90 per diluted share on a GAAP basis — essentially flat with the $1.64 billion, or $2.92 per share, reported in Q1 2025.
The quarter also included $96 million in pre-tax expenses tied to the acquisitions of Foundation Building Materials and Artisan Design Group.
CEO Marvin Ellison called it “a solid start to the year” and the company’s “fourth consecutive quarter of positive comp sales.”
He also didn’t sugarcoat the backdrop: “In spite of a challenging housing macro, we remain focused on advancing our Total Home strategy.”
Guidance Fell Short of Expectations
That’s where the market pushed back. Lowe’s guided for full-year adjusted EPS of $12.25 to $12.75 — a midpoint of $12.50, which sits below the analyst consensus of $12.59.
Full-year revenue guidance of $92 billion to $94 billion also came in slightly below the $93.07 billion consensus.
The company expects comparable sales to be flat to up 2% for the full year — a cautious range given ongoing consumer uncertainty and high gas prices.
Rival Home Depot Also Reaffirmed Guidance This Week
It’s worth noting that Home Depot reported earlier this week and also beat expectations. Home Depot reaffirmed its full-year guidance and said its core customer remains resilient. The retailer added it has applied for tariff refunds that could help offset rising fuel costs.
Back in February, Lowe’s cut roughly 600 corporate and support roles, saying it wanted to direct more resources toward store-level employees.
Ellison’s “Total Home strategy” — focused on serving both DIY customers and home professionals — has been the company’s growth engine.
The Pro and online channels continue to be bright spots, with both showing momentum in Q1.
Lowe’s reaffirmed full-year total sales of $92 billion to $94 billion, representing 7% to 9% growth over the prior year.
On an adjusted basis, full-year EPS is expected between $12.25 and $12.75.
The Q1 beat was the fourth straight quarter of positive comp sales for Lowe’s — a streak the company is clearly trying to extend through its spring selling season and beyond.
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