10-QPeriod: Q2 FY2027

LOWES COMPANIES INC Quarterly Report for Q2 Ended May 1, 2026

Filed May 28, 2026For Securities:LOW

Summary

Lowe's Companies, Inc. (LOW) reported a 10.3% increase in net sales for the first quarter of fiscal year 2026, reaching $23.1 billion, up from $20.9 billion in the prior year period. This growth was primarily driven by a 0.6% increase in comparable sales, which included a 1.5% rise in average ticket price, slightly offset by a 0.9% decrease in customer transactions. Despite the sales increase, net earnings remained relatively flat at $1.63 billion, leading to a slight decrease in diluted earnings per share to $2.90 from $2.92 in the prior year. The company incurred pre-tax expenses of $96 million related to intangible asset amortization from recent acquisitions (ADG and FBM), which impacted adjusted diluted earnings per share to $3.03, indicating a stronger operational performance when these one-time costs are excluded. The company continued its strategic investments in Pro customer offerings, online presence, and home services. Significant debt repayment was observed, with $2.4 billion of bond maturities repaid, aligning with a deleveraging commitment. Liquidity remains strong, with $0.8 billion in cash and cash equivalents and $4.6 billion in undrawn capacity on its revolving credit facilities. Management notes a challenging macroeconomic environment, including the impact of winter storms early in the quarter, but expressed encouragement from customer response to seasonal offerings as weather improved.

Financial Highlights

49 data points
Beta

Revenue

$23.08B

32.7% Gross Margin

Net Income

$1.63B

7.1% Net Margin

EPS (Diluted)

$2.90

Total Assets

$54.94B

Cash & Equivalents

$786.00M

Free Cash Flow

$2.83B

Financial Statements
Beta
Revenue$23.08B
Cost of Revenue$15.54B
Gross Profit$7.54B
SG&A Expenses$4.42B
Operating Income$2.55B
Net Income$1.63B
EPS (Basic)$2.90
EPS (Diluted)$2.90
Shares Outstanding (Basic)559.00M
Shares Outstanding (Diluted)560.00M

Key Highlights

  • 1Net sales increased by 10.3% to $23.1 billion, driven by comparable sales growth of 0.6%.
  • 2Net earnings remained stable at $1.63 billion, though diluted EPS slightly decreased to $2.90 from $2.92.
  • 3Acquisitions of ADG and FBM resulted in $96 million in pre-tax intangible asset amortization, impacting reported EPS.
  • 4Adjusted diluted EPS, excluding acquisition-related amortization, was $3.03, indicating underlying operational strength.
  • 5Significant debt repayment of $2.4 billion occurred, supporting deleveraging efforts.
  • 6Strong liquidity position with $0.8 billion in cash and $4.6 billion in available credit facilities.
  • 7The company is actively returning capital to shareholders through dividends ($674 million) and share repurchases ($363 million).

Frequently Asked Questions

Lowe's sales growth was primarily driven by an increase in comparable sales, which rose by 0.6%. This was composed of a 1.5% increase in the average ticket price per customer, partially offset by a 0.9% decrease in customer transactions. This indicates that customers are spending more per visit, even if the total number of visits slightly declined.

The acquisitions of Artisan Design Group (ADG) and Foundation Building Materials (FBM) in 2025 led to $96 million in pre-tax expenses related to the amortization of intangible assets in the first quarter of fiscal year 2026. While this reduced reported diluted earnings per share, the company highlighted an 'adjusted diluted earnings per share' of $3.03, which excludes this amortization, suggesting the underlying business operations are performing well.

Lowe's demonstrated a commitment to deleveraging by repaying $2.4 billion of bond maturities in the quarter. The company also returned significant capital to shareholders through $674 million in cash dividends and $363 million in share repurchases. The company also has a substantial remaining authorization for share repurchases of $10.5 billion.

Lowe's maintains a strong liquidity position, reporting $0.8 billion in cash and cash equivalents and $4.6 billion in undrawn capacity under its revolving credit facilities as of May 1, 2026. This robust liquidity, combined with ongoing access to capital markets, is expected to support operations, strategic investments, and debt obligations for the next twelve months.