LOW · Q2 2026 Earnings

Cautious

Lowe's

Reported August 19, 2026

30-second summary

Q2 revenue rose 8.4% YoY to $26.0B on comps of just +0.2% — the fifth consecutive positive comp, but landing at the very bottom of the flat-to-+2% Q2 framing and confirming the demand softness management telegraphed in May. Adjusted EPS of $4.40 came in +1.6% YoY, materially above the pre-announced guide of ~2% below prior year — a ~3.6-point beat, aided by an $0.11 IEEPA tariff-refund benefit inside the adjusted number. The real news is in the FY2026 guide: revenue collapsed to a $92.0B point from the $92.0–94.0B range, adjusted EPS to $12.25 point from $12.25–12.75, and comps to "flat" from "flat to +2%" — the entire upside scenario eliminated in one quarter, with the tariff-refund benefit disclosed as non-recurring in the back half.

Headline numbers

EPS

Q2 FY2026

$4.40

Revenue

Q2 FY2026

$26.00B

+8.4% YoY

Gross margin

Q2 FY2026

33.0%

Operating margin

Q2 FY2026

13.7%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$26.00B	$23.96B	+8.5%	$23.08B	+12.7%
EPS	$4.40	$4.33	+1.6%	$3.03	+45.2%
Gross margin	33.0%	33.8%	-77bps	32.7%	+36bps
Operating margin	13.7%	14.5%	-81bps	11.1%	+260bps

Guidance

Lowe's substantially narrowed full-year FY2026 guidance across revenue, EPS, and comparable sales, eliminating all upside despite beating Q2 comparable sales expectations, signaling materially weaker second-half outlook.

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Adjusted Diluted EPS	Q2 FY2026	approximately 2% below prior year	4.4	in-line with qualitative guide (2% below prior year YoY)	Met
Comparable Sales	Q2 FY2026	roughly in line with full year guide (flat to up 2%)	0.2%	slightly above the low end of the flat-to-+2% range	Beat

New guidance

Metric	Period	Guide	YoY
Operating Margin	FY2026	11.2%	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY2026	$92.0 to $94.0 billion	$92.0 billion	-$2.0 billion at the high end; guidance narrowed to midpoint	Lowered
Adjusted Diluted EPS	FY2026	$12.25 to $12.75	approximately $12.25	-$0.50 at the high end; guidance narrowed to midpoint	Lowered
Diluted EPS (GAAP)	FY2026	$11.75 to $12.25	approximately $11.75	-$0.50 at the high end; guidance narrowed to midpoint	Lowered
Adjusted Operating Margin	FY2026	11.6% to 11.8%	11.6%	-0.20 percentage points at the high end; guidance narrowed to low end	Lowered
Comparable Sales	FY2026	flat to up 2%	flat as compared to prior year	-2.0 percentage points at the high end; guidance narrowed to zero growth	Lowered

Reaffirmed unchanged this quarter: Capital Expenditures (up to $2.5 billion), Net Interest Expense (approximately $1.6 billion), Effective Income Tax Rate (approximately 24.5%)

Platform metrics

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Comparable Sales Growth	0.2%	1.1%	—
Store Count	1,761 stores	1,753 stores	—
Retail Selling Space	196.0 million sq ft	195.5 million sq ft	—

Profitability

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Operating Margin	13.67%	14.48%	—
Gross Margin	33.04%	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026
Dividend per Share	$1.25

Management tone

Tone analysis skipped — no transcript available for this print. Tone commentary will resume when transcript excerpts are provided next quarter.

Answers to last quarter's watch list

Q2 adjusted EPS delivery vs the explicit -2% YoY guide — Adjusted EPS came in at $4.40, +1.6% YoY versus a prior-year adjusted EPS base of $4.33, materially above the ~2% below prior year framing set in May. This is a ~3.6-point beat versus guide, aided by an $0.11 IEEPA tariff-refund benefit inside the adjusted number. The pre-announced base case was cleared with room; the FY guide cut that came with it nonetheless invalidates the upside case.

Resolved positively

Gross margin trajectory — Q2 gross margin printed 33.04%, down 77bps from Q2 FY2025's 33.81% and up from Q1's 32.68% only because of Q2's seasonal favorability plus the tariff refund. Underlying pressure from fuel/resin/plastics is landing at the gross line as flagged, and vendor cost-sharing did not fully offset. With the tariff refund now consumed and no further refund assumed in H2, gross margin compression likely widens in Q3/Q4.

Resolved negatively

First quantitative pro comp or FBM cross-sell metric — Neither was disclosed for a sixth consecutive quarter. Pro is cited as a growth driver in the qualitative commentary alongside Online and Home Services. FBM has been fully consolidating since Q4 FY2025 and there is still no pro-channel comp figure. The absence is now the loudest signal in the deck.

Not resolved

FY adjusted EPS guide treatment — Guide narrowed to "approximately $12.25" from the $12.25–12.75 range — the low end held, the upside was eliminated. This is a $0.50 cut at the top end presented as a narrowing.

Resolved negatively

CapEx run-rate — CapEx guidance reaffirmed at "up to $2.5B" with no change. Press release does not break out Q2 CapEx run-rate. The soft-ceiling language remains in place quarter-over-quarter.

Continue monitoring

Tariff/transportation cost flagged for Q2 — Q2 gross margin of 33.04% (down 77bps YoY) confirms the cost pressure landed; the FY commentary explicitly includes a Q2 tariff refund ($0.11 EPS benefit) that offset some of the damage. Without that refund the underlying compression is materially worse, and management is explicitly excluding any further refund from the H2 outlook.

Resolved negatively

What to watch into next quarter

Q3 comp delivery against the "flat" FY guide — H1 comps averaged ~+0.4% (Q1 +0.6%, Q2 +0.2%). For FY to land flat, H2 needs to deliver roughly -0.4%. Any Q3 print below zero validates the demand-deterioration read of this quarter's guide cut; a positive Q3 forces the question of whether FY was cut too aggressively.

Gross margin without the tariff refund tailwind — Q2's 33.04% included a tariff refund benefit that management has explicitly excluded from H2. Watch whether Q3 gross margin holds above the Q1 baseline of 32.68% or sinks below it as fuel/resin/plastics pressure runs without the refund offset.

First quantitative pro comp or FBM cross-sell metric — Six consecutive quarters of qualitative-only pro disclosure with FBM now four quarters into full consolidation. The next call is the last credible window for a hard pro number before the multi-year narrative loses market patience.

H2 adjusted EPS path to $12.25 — With Q2 adjusted EPS at $4.40 and the FY guide at approximately $12.25, the implied H1+H2 walk depends on a Q1 adjusted EPS figure not disclosed in this release. Watch the Q3 print and management's H2 framing on the call for whether the newly-tightened FY guide remains achievable or whether a second cut is coming.

Discretionary DIY commentary — Q2 called out "pressure in discretionary DIY spending" as the explicit incremental drag. Watch whether Q3 quantifies the DIY spread vs Pro/Home Services and whether the pressure has stabilized or deepened.

Any tariff-refund reversal or additional refund disclosure — Management explicitly excluded further refunds from FY guide. A positive surprise (additional refund) becomes upside; a reversal or clawback becomes an incremental cut.

Sources

Lowe's Q2 FY2026 Press Release / 8-K exhibit, filed August 19, 2026 — https://www.sec.gov/Archives/edgar/data/60667/000006066726000113/exhibit991-07312026.htm
Lowe's Q1 FY2026 Press Release / 8-K exhibit, filed May 20, 2026 (prior guidance baseline)
Lowe's Q4 FY2025 Press Release / 8-K exhibit, filed February 2026 (initial FY2026 guide baseline)

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