Lowe's beats Q2 EPS, trims sales outlook as DIY demand cools

Lowe's reported adjusted EPS of $4.40 for Q2, beating the $4.22 consensus, while sales of $25.96 billion missed estimates.

The company cut its full-year comparable-sales outlook to flat from a prior range of flat to up 2 percent, and guided fiscal 2026 adjusted EPS to $12.25, the low end of its $12.25 to $12.75 range, Lowe's said in a statement.

Metric	Actual	Consensus	Beat/Miss
Adjusted EPS	$4.40	$4.22	+4.3%
Sales	$25.96B	$26.16B	-0.8%
Comparable sales	+0.2%	—	—

Net earnings came in at $2.4 billion, with diluted EPS of $4.27, flat from a year earlier. Adjusted EPS rose 1.6 percent from $4.33 in Q2 2025. Total sales climbed 8.3 percent from $23.96 billion a year ago, though the modest 0.2 percent rise in comparable sales suggests store expansion, not underlying demand, drove the top-line gain. The revenue miss points to softer volume or average ticket size among DIY shoppers, offset by operational efficiencies that lifted the earnings beat. Online sales jumped 15.7 percent year over year, supported by strength in the pro and home services segments.

The guidance cut comes as high mortgage rates keep homeowners from big-ticket remodels, leaving Lowe's larger do-it-yourself customer base more exposed than rival Home Depot, which beat expectations and held its targets on steadier repair-and-maintenance spending. Lowe's raised its quarterly dividend to $1.25 per share from $1.20 in May.

The trimmed outlook could invite another round of estimate cuts, with analysts already lowering price targets ahead of the report. Wells Fargo's Zachary Fadem cut his target to $245 from $255, JP Morgan's Christopher Horvers to $252 from $279, and Citigroup's Steven Zaccone to $267 from $285. The dividend increase, announced in May, reflects a commitment to shareholder returns even as the company trims its growth outlook. Lowe's shares closed at $215.64 on Tuesday, down 0.1 percent.

The flat comparable-sales guide shows management expects DIY demand to stay muted through the second half, even as pro and online channels carry growth. The 15.7 percent online gain raises the question of whether digital channels will increasingly cannibalize in-store traffic, a dynamic that could pressure margins if fulfillment costs rise. Investors will watch the earnings call for updated segment margins and any signal on DIY traffic into the fall, when the housing market typically sees a seasonal pickup.

This article is for informational purposes only and does not constitute investment advice.