Lowe's Companies, Inc. Lowers Annual Outlook Despite Profit Beat

Lowe's Companies, Inc. reported mixed fiscal second-quarter results on August 19, 2026, beating analyst profit expectations with adjusted earnings per share of $4.40 against a forecast of $4.22. Revenue for the quarter reached $25.96 billion, slightly missing the $26.16 billion estimate. The company's quarterly resilience was driven by a 15.7% increase in online sales and strong demand for necessary home repairs and professional services, which offset a decline in do-it-yourself remodeling.

Despite the quarterly beat, the retailer lowered its full-year outlook to the bottom end of previous guidance. The company now expects total sales of $92 billion and flat comparable sales, a reduction from its previous forecast of flat to 2% growth. Adjusted earnings per share for fiscal 2026 are now projected at $12.25.

CEO Marvin Ellison attributed the cautious forecast to homeowners remaining on the sidelines regarding discretionary spending. He noted that while the company received approximately $80 million in tariff refunds—adding 11 cents to quarterly earnings—Lowe's declined to implement aggressive price cuts to protect shareholder profitability. This cautious stance follows a similar quarterly beat by rival Home Depot, though analysts note Lowe's remains more exposed to shifts in discretionary spending due to its historical reliance on DIY customers.