Lowe’s (LOW) Q2 2027 earnings summary

Executive summary

• Q2 2026 sales reached $26.0 billion, up 8.3% year-over-year, with comparable sales up 0.2% driven by Pro, Online, and Home Services, despite soft DIY demand and challenging weather.

• Net earnings for Q2 2026 were $2.4 billion, with diluted EPS of $4.27; adjusted diluted EPS was $4.40, including a $0.11 benefit from tariff refunds.

• The company advanced its Total Home strategy, integrating FBM and ADG acquisitions to strengthen its Pro position and expand in residential construction.

• Online sales grew 15.7% year-over-year, supported by digital investments and improved user experience.

• Cash flows from operations for the first six months were $7.0 billion, supporting $1.3 billion in dividends and $2.4 billion in debt repayment.

Financial highlights

• Q2 2026 net sales: $26.0 billion (up from $24.0 billion in Q2 2025); comparable sales rose 0.2%.

• Q2 2026 net earnings: $2.4 billion; diluted EPS: $4.27; adjusted diluted EPS: $4.40.

• Gross margin for Q2 2026 was 33.04%, down 77-80 basis points year-over-year, impacted by acquisitions and higher costs.

• Operating income for Q2 2026 was $3.55 billion (13.67% of sales).

• Inventory ended at $17.7 billion, up $1.4 billion year-over-year, reflecting normalization of tariff timing, in-stock investments, and FBM acquisition.

• Free cash flow was $3.1 billion; capital expenditures were $542 million; dividends paid totaled $673 million.

Outlook and guidance

• FY2026 total sales expected at $92.0 billion, with flat comparable sales.

• Adjusted operating margin projected at 11.6%; adjusted diluted EPS expected at $12.25.

• Capital expenditures forecasted up to $2.5 billion.

• Q3 comp sales expected to align with full-year outlook; adjusted EPS to be about 7% below prior-year.

• Guidance reflects continued macro pressure on DIY and residential construction, especially for FBM and ADG.