01—Abstract
Summary
Summary of the 10-Q filed August 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Lowe's Companies, Inc. reported solid financial results for the second quarter and first six months of fiscal year 2026.
Net sales for the quarter increased by 8.3% year-over-year to $25.96 billiona, driven by a 2.3% increase in average ticket, though customer transactions saw a slight decrease. For the first six months, net sales grew 9.2% to $49.03 billion. Net earnings remained stable for the quarter at $2.4 billion, with diluted EPS of $4.27, consistent with the prior year.
For the first six months, net earnings were $4.03 billionb. The company continues to manage its operations effectively, with a focus on Pro customers, online sales, and home services, while navigating a dynamic economic environment. Investments in strategic initiatives and productivity improvements are ongoing, positioning the company for long-term growth.
02—Key points
Key Highlights
- Net sales increased by 8.3% to $25.96 billion for the three months ended July 31, 2026, and by 9.2% to $49.03 billion for the six months ended July 31, 2026.
- Comparable sales increased by 0.2% for the quarter, driven by a 2.3% rise in average ticket, partially offset by a 2.1% decrease in customer transactions.
- Net earnings for the quarter were $2.40 billion, with diluted EPS of $4.27, matching the prior year's results.
- The company recognized approximately $80 million pre-tax of tariff refunds in the second quarter of 2026.
- Cash flows from operating activities for the first six months were $7.01 billion, a decrease from $7.61 billion in the prior year, primarily due to working capital timing.
- Lowe's ended the quarter with $3.17 billion in cash and cash equivalents and $5.0 billion in undrawn capacity on its revolving credit facilities.
- The company continued to return capital to shareholders, paying $1.35 billion in dividends and repurchasing $367 million in stock during the first six months of fiscal 2026.
03—Questions
Frequently Asked Questions
What was the primary driver of sales growth in the second quarter?
Sales growth in the second quarter was primarily driven by an increase in the average ticket size (up 2.3%), indicating customers are spending more per transaction, although the number of customer transactions decreased slightly.
How did the company's acquisitions of FBM and ADG impact the financial results?
The acquisitions of FBM and ADG, completed in fiscal year 2025, contributed to sales growth and are expected to strengthen the company's ability to serve Pro customers. However, they also resulted in increased amortization of intangible assets, impacting reported net earnings and EPS. Adjusted diluted EPS excludes these impacts for better operational comparison.
What is the company's outlook on tariffs?
Lowe's is closely monitoring the dynamic tariff environment. The company recognized approximately $80 million pre-tax in tariff refunds in the second quarter following a Supreme Court ruling on IEEPA tariffs. However, uncertainties remain regarding the exact amount and timing of future refund collections.
What is the company's liquidity position?
Lowe's maintains a strong liquidity position with $3.17 billion in cash and cash equivalents as of July 31, 2026. Additionally, the company has $5.0 billion in undrawn capacity on its revolving credit facilities, providing ample resources for operations and strategic investments.
04—Continue