Lowe's 8-K
NegativeEarningsGuidance lowered
DIY spending pressure partly offsets Pro, home services and online gains; FY2026 outlook cut to prior ranges' low end.
Filed 2026-08-19 08:45 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with a lower FY2026 outlook. Sales rose 8.3% Y/Y, while comparable sales increased 0.2%, supported by Pro, home services and 15.7% online sales growth; persistent pressure in discretionary DIY spending partly offset those gains. The FY2026 outlook reflects first-half results and current demand trends.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $26.0B | $24.0B | +8.3% |
| Operating income | $3.55B | $3.47B | +2.3% |
| Net earnings | $2.40B | $2.40B | 0.0% |
| Diluted EPS | $4.27 | $4.27 | 0.0% |
| Adjusted diluted EPS, non-GAAP | $4.40 | $4.33 | +1.6% |
- Comparable sales increased 0.2%; Pro and home services performed strongly, and online sales rose 15.7%, partly offset by DIY pressure. GAAP operating margin was 13.67%, down 81 bp Y/Y; adjusted operating margin was 14.04%, down 62 bp.
- Q2 included $96M of pretax acquisition-related expenses. Both GAAP and adjusted diluted EPS included an $0.11 benefit from tariff refunds. Lowe’s paid $673M in dividends during the quarter.
- First-half operating cash flow was $7.01B vs $7.61B Y/Y; free cash flow, calculated as operating cash flow less capital expenditures, was $5.95B vs $6.60B. Share repurchases were $366M vs $113M, while shares outstanding were 561M in both periods.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Total sales | FY2026 | $92.0B | $92.0B-$94.0B | Lowered |
| Comparable sales | FY2026 | Flat Y/Y | Flat to +2% | Lowered |
| Operating margin, GAAP | FY2026 | 11.2% | 11.2%-11.4% | Lowered |
| Adjusted operating margin, non-GAAP | FY2026 | 11.6% | 11.6%-11.8% | Lowered |
| Net interest expense | FY2026 | ≈$1.6B | — | — |
| Effective income tax rate | FY2026 | ≈24.5% | — | — |
| Diluted EPS, GAAP | FY2026 | ≈$11.75 | $11.75-$12.25 | Lowered |
| Adjusted diluted EPS, non-GAAP | FY2026 | ≈$12.25 | $12.25-$12.75 | Lowered |
| Capital expenditures | FY2026 | Up to $2.5B | — | — |
Investor Takeaways
- Watch sales and comparable sales through the rest of FY2026 against the updated outlook, particularly whether Pro, online and home services continue to offset DIY weakness.
- The outlook includes tariff refunds recognized in Q2 but excludes potential additional refunds in the second half.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3