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FY2026 Q1
Improving
Lowe's Companies, Inc. earnings call
Buzzberg read
Management expects flat 2026 market while Lowe's takes share
Lowe's reported a positive Q1 2026 with slight comp growth, driven by spring categories and pro/online/home services. Management maintained full-year guidance and noted a flat DIY market, while focusing on executing its 'total home' strategy to gain market share. The call also highlighted strategic initiatives like AI-powered tools and new fulfillment offerings. Sales of $23.1B and comparable sales up 0.6%, with strong performance in Pro, appliances, online (15.5%) and home services.
Buzzberg read Management expects flat 2026 market while Lowe's takes share Lowe's reported a positive Q1 2026 with slight comp growth, driven by spring categories and pro/online/home services. Management maintained full-year guidance and noted a flat DIY market, while focusing on executing its 'total home' strategy to gain market share. The call also highlighted strategic initiatives like AI-powered tools and new fulfillment offerings. Sales of $23.1B and comparable sales up 0.6%, with strong performance in Pro, appliances, online (15.5%) and home services. Read full analysisCollapse analysis
Lowe's reported a positive Q1 2026 with slight comp growth, driven by spring categories and pro/online/home services. Management maintained full-year guidance and noted a flat DIY market, while focusing on executing its 'total home' strategy to gain market share. The call also highlighted strategic initiatives like AI-powered tools and new fulfillment offerings. Sales of $23.1B and comparable sales up 0.6%, with strong performance in Pro, appliances, online (15.5%) and home services.
- Maintained FY2026 guidance: revenue $92-94B, EPS $12.25-12.75, operating margin 11.6-11.8%, and capex up to $2.5B.
- Expects Q2 EPS to be ~2% below prior year due to investments, acquisition dilution, and transportation costs, but comps roughly in line with full-year midpoint.
- Pro customer backlogs stable, but DIY consumer under pressure; big-ticket discretionary remains weak.
Revenue$23.078B+12% QoQ
EPS$3.03+53% QoQ
Gross margin32.68%Reported
Operating margin11.07%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
AI
AI assistant users convert at triple the online rate
Fulfillment
Loyalty members now get free same-day delivery over $25
Show 3 more callouts
M&A
FBM and ADG set up upside to future housing recovery
Merchandising
Workwear and pet national rollout on track by year-end
Guidance
Q2 EPS expected about 2% below prior year
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $23.078B | +12% QoQ |
| EPS | $3.03 | +53% QoQ |
| Gross margin | 32.68% | Reported |
| Operating margin | 11.07% | Reported |
| Free cash flow | $2.829B | Reported |
| Capex | $0.521B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | $2.5B | $2.5B | Maintained |
| EPS | FY2026 | $12.25–$12.75 | $12.50 | Maintained |
| EPS | FY2026 Q2 | $3.00 | $3.00 | Guided |
| Operating margin | FY2026 | 11.6%–11.8% | 11.7% | Maintained |
| Revenue | FY2026 | $92B–$94B | $93B | Maintained |
AI, capex & demand read
Management read
Confident
Management acknowledged DIY and margin pressure but repeatedly emphasized execution, market share gains, and a proven playbook for navigating volatility.
Management AI read
Management said AI is already a tangible growth and efficiency driver. The Milo shopping assistant now supports over one million inquiries per month, with online conversion roughly triple for users, and MyLo Companion has handled 5 million+ associate questions. AI is also being used internally for code review and productivity, and capex is being directed toward tech-driven AI initiatives.
Investment and capacity
Management affirmed fiscal 2026 capex guidance at up to $2.5 billion, with Q1 spend of $521 million. Investment is focused on the total home strategy, including tech-driven productivity efforts and key AI initiatives, with no signal of a cut despite macro uncertainty.
all 5 named companies below
Companiesreturns since call
Partners
Partners
Bill Boltz
Lowe's is working with Sherwin-Williams to improve in-store paint expertise, indicating continued partnership but no quantitative signal.
Evidence
“at the same time, we're partnering closely with our vendor partners, like Sherwin-Williams, to elevate the in-store support for our Red Vest associates”
Suppliers
Suppliers
Bill Boltz
Explicitly mentioned as a key brand in Lowe's outdoor power equipment lineup.
Evidence
“This performance was supported by our industry-leading lineup of outdoor power equipment brands such as John Deere, Toro, Ego, Husqvarna, Craftsman, and Cobalt”
Suppliers
Bill Boltz
Weber is a key brand for Lowe's spring/summer grilling segment.
Evidence
“with a strong focus on key seasonal categories like lawn and garden, patio furniture, and grills from Weber, Charbroil, and Blackstone.”
Supply chain
Supply chain
Marvin Ellison
Lowe's management is observing a K-shaped consumer economy, where higher-income individuals are spending while lower-income consumers remain cautious, impacting DIY demand. — This signal is a nuanced read on consumer health and demand for discretionary home improvement, indicating a bifurcated market with sustained pressure on lower-income DIY customers.
Evidence
“we're operating in what we would describe as a K-shaped economy where the higher income consumer spends and they're spending on innovation and they're spending on things to modernize their home.”
External signals
Supply-chain alpha · 3returns since call
Lowe's is prioritizing free same-day delivery for loyalty members for spring items like mulch, investing in fulfillment as a key sales driver.
Evidence
“we began offering free same-day delivery for purchases over $25 for MyLoads Rewards and MyLoads Pro Rewards members.”
Lowe's is expanding its private label brands into new categories like workwear and pet, which are seeing strong growth and are planned for full national rollout by end of year.
Evidence
“We remain on track to complete the national rollout of workwear and pet to all of our stores by the end of the year.”
Lowe's management is observing a K-shaped consumer economy, where higher-income individuals are spending while lower-income consumers remain cautious, impacting DIY demand.
Methodology & coverage
Management-only analysis. All 5 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.