Lowe’s Delivers Solid Q1 as Pro Momentum and Online Growth Offset Housing Headwinds
Lowe’s Companies, Inc. (NYSE: LOW) reported first-quarter fiscal 2026 results that showed resilient demand trends despite continued pressure from the housing market. The home improvement retailer delivered revenue growth, positive comparable sales, and reaffirmed its full-year outlook.
Fundamentals: Steady Growth and Strategic Progress
Lowe’s posted first-quarter sales of $23.1 billion, up from $20.9 billion in the same period last year. Comparable sales increased 0.6%, marking the company’s fourth consecutive quarter of positive comp sales. The gains were driven by strong spring execution, a 15.5% increase in online sales, and continued momentum across appliances, home services, and Pro sales. COMP transactions decreased 0.9%, and COMP average ticket increased 1.5%.
Chairman, President and CEO Marvin R. Ellison said, “In spite of a challenging housing macro, we remain focused on advancing our Total Home strategy to provide the best experience for our customer." Lowe’s continued expanding its Pro customer ecosystem, enhanced loyalty benefits with free same-day delivery on qualifying purchases, and advanced its AI-powered in-store assistant, Mylow, which reached 5 million associate questions milestone.
Another three of America's largest retailers, Walmart, Home Depot and Target, also reported their quarterly earnings recently. More information to visit: Walmart Stock Slides After Earnings Despite Strong Revenue and eCommerce Growth; Home Depot Holds Guidance Steady as Sales Rise, But Margins Face Pressure and Target Reports Strong Q1 Performance with Upgraded Full-Year Outlook.
The Earnings Breakdown
Profitability showed mixed trends during the quarter. Gross profit increased to $7.5 billion from $7.0 billion a year earlier, though gross margin declined to 32.68% from 33.38%. Operating income rose to $2.6 billion, but operating margin narrowed to 11.07% from 11.92% in the prior-year period.
Net earnings were essentially flat at $1.63 billion, compared with $1.64 billion a year ago. Diluted earnings per share came in at $2.90, slightly below the $2.92 reported in the first quarter of 2025. However, adjusted diluted EPS rose 3.8% year over year to $3.03 after excluding $96 million in pre-tax acquisition-related expenses tied to Foundation Building Materials (FBM) and Artisan Design Group (ADG).
Balance Sheet and Business Outlook
From a balance sheet perspective, Lowe’s ended the quarter with $786 million in cash and cash equivalents and total debt of approximately $37.9 billion. Operating cash flow reached $3.4 billion during the quarter, while the company returned capital to shareholders through $674 million in dividend payments.
Despite ongoing housing market challenges, Lowe’s reaffirmed its fiscal 2026 outlook. The company expects total sales between $92 billion and $94 billion, representing growth of roughly 7% to 9% year over year. Comparable sales are projected to range from flat to up 2%, while diluted earnings per share are expected between $11.75 and $12.25, or $12.25 to $12.75 on an adjusted basis. The company also forecasted net interest expense of approximately $1.6 billion and capital expenditures of up to $2.5 billion.
LOW Stock Technical Analysis
From a technical perspective, LOW stock faces an important test near the $238 resistance level. A sustained move above $238 could open the door toward the next key resistance around $251. Overcoming both of these overhead resistance levels is vital for the stock to confirm a more durable upward trend.
However, if shares fail to decisively break through resistance, the stock may retreat to test support near $194. A deeper pullback could bring additional downside support into focus within the $178 to $168 range.