OpenNashEarnings

Lowe's (LOW) · Retail

Lowe's Q1 FY2026 earnings: summary, key numbers & outlook

Results filed 20 May 2026 · Quarter ended 1 May 2026

Press release ↗Investor relations ↗

Summaries and transcripts are machine-generated and can contain errors.

In brief

Lowe's reported first quarter 2026 diluted EPS of $2.90 and adjusted diluted EPS of $3.03, with total sales of $23.1 billion and comparable sales up 0.6%.

Lowe's first quarter sales were $23.1 billion, compared with $20.9 billion a year earlier, helped by the Foundation Building Materials and Artisan Design Group acquisitions. Comparable sales rose 0.6%, the fourth straight positive quarter, led by online (up 15.5%), appliances, home services and Pro. Diluted EPS was $2.90 versus $2.92; adjusted EPS was $3.03, up 3.8%.

Management affirmed its full year 2026 outlook: sales of $92.0 to 94.0 billion, comparable sales flat to up 2%, and adjusted diluted EPS of approximately $12.25 to $12.75. The main tension is a challenging housing market: gross margin fell 70 basis points, operating margin fell, and acquisition-related interest and amortization weigh on profit even as sales grow.

Key numbers

Total sales · GAAP
$23.1 billion

compared to $20.9 billion in the prior-year quarter

Net earnings · GAAP
$1.6 billion

Diluted EPS · GAAP
$2.90

compared to diluted EPS of $2.92 in the first quarter of 2025

Adjusted diluted EPS · non-GAAP
$3.03

increased 3.8% compared to the prior-year diluted EPS

Operating income · GAAP
$2.6B

vs $2,494 a year ago

Operating margin · GAAP
11.07

vs 11.92 a year ago

Adjusted operating margin · non-GAAP
11.49 %

-43 basis points vs. LY

Gross margin · GAAP
32.68

-70 basis points vs. LY

Segment or metricValueChange
Comparable sales0.6%fourth consecutive quarter of positive comp sales
Online sales growth15.5%
Stores operated1,759
Where each number comes from
  • Total sales: “Total sales for the quarter were $23.1 billion, compared to $20.9 billion in the prior-year quarter.”
  • Net earnings: “today reported net earnings of $1.6 billion and diluted earnings per share (EPS) of $2.90 for the quarter ended May 1, 2026”
  • Diluted EPS: “diluted earnings per share (EPS) of $2.90 for the quarter ended May 1, 2026, compared to diluted EPS of $2.92 in the first quarter of 2025”
  • Adjusted diluted EPS: “first quarter 2026 adjusted diluted EPS1 increased 3.8% to $3.03 compared to the prior-year diluted EPS.”
  • Operating income: “Operating income | 2,554 | 11.07 | 2,494 | 11.92 Interest – net | 399 | 1.73 | 337 | 1.61”
  • Operating margin: “Operating Income, As Reported $ 2,554 Acquisition of businesses 96 Adjusted Operating Income $ 2,650 Operating Margin, % of Sales 11.07 %”
  • Adjusted operating margin: “Operating Margin, % of Sales 11.07 % Adjusted Operating Margin, % of Sales 11.49 % Three Months Ended May 1, 2026”
  • Gross margin: “Cost of sales | 15,535 | 67.32 | 13,944 | 66.62 Gross margin | 7,543 | 32.68 | 6,986 | 33.38 Expenses:”
  • Comparable sales: “Comparable sales for the quarter increased 0.6%, driven by strong spring execution as well as a 15.5% online sales growth”
  • Online sales growth: “driven by strong spring execution as well as a 15.5% online sales growth and continued strength in appliances, home services and Pro sales.”
  • Stores operated: “As of May 1, 2026, Lowe’s operated 1,759 stores, representing 196.0 million square feet of retail selling space.”

Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.

From the filingQ1 FY2026vs year agovs last quarter
Revenue$23.1B+10.3%+12.1%
Operating income$2.6B+2.4%+49.5%
Net income$1.6B−0.8%+62.8%
Diluted EPS$2.90−0.7%—
Free cash flow$2.8B−1.1%+193.5%
Gross margin32.7%−0.7 pts+0.2 pts
Operating margin11.1%−0.8 pts+2.8 pts

Calculated by code from XBRL, not by the model.

Outlook

MetricPeriodOutlook
Total salesfiscal year 2026$92.0 to 94.0 billion
Comparable salesfiscal year 2026flat to up 2%
Operating marginfiscal year 202611.2% to 11.4%
Adjusted operating marginfiscal year 202611.6% to 11.8%
Net interest expensefiscal year 2026approximately $1.6 billion
Effective income tax ratefiscal year 2026approximately 24.5%
Diluted EPSfiscal year 2026approximately $11.75 to $12.25
Adjusted diluted EPSfiscal year 2026approximately $12.25 to $12.75
Capital expendituresfiscal year 2026up to $2.5 billion

Key takeaways

  1. Comparable sales rose 0.6% for fourth straight quarter

    Comparable sales increased 0.6%, driven by strong spring execution, 15.5% online sales growth and strength in appliances, home services and Pro sales.

  2. Acquisitions lifted sales to $23.1 billion

    Total sales were $23.1 billion versus $20.9 billion a year earlier, while goodwill rose to $3,945 million from $311 million after the FBM and ADG deals.

  3. Margins fell despite higher sales

    Gross margin was 32.68% versus 33.38%, and operating margin was 11.07% versus 11.92% a year ago.

  4. Adjusted EPS grew 3.8% while GAAP EPS slipped

    Diluted EPS was $2.90 versus $2.92, but excluding $96 million of acquisition amortization, adjusted diluted EPS was $3.03, up 3.8%.

  5. Full year 2026 outlook was affirmed

    Lowe's still expects total sales of $92.0 to 94.0 billion and adjusted diluted EPS of approximately $12.25 to $12.75, with comparable sales flat to up 2%.

Charts

Revenue$23.1B+10.3% y/yQ1 FY26
Q3 FY24: $20.2BQ3 24$20.2BQ4 FY24: $18.6B (worked out from the annual figure)Q4 24$18.6BQ1 FY25: $20.9BQ1 25$20.9BQ2 FY25: $24.0BQ2 25$24.0BQ3 FY25: $20.8BQ3 25$20.8BQ4 FY25: $20.6B (worked out from the annual figure)Q4 25$20.6BQ1 FY26: $23.1BQ1 26$23.1BQ2 FY26: $26.0BQ2 26$26.0B

Fourth quarter worked out from the annual figure.

Data
Q3 FY24$20.2B
Q4 FY24$18.6B *
Q1 FY25$20.9B
Q2 FY25$24.0B
Q3 FY25$20.8B
Q4 FY25$20.6B *
Q1 FY26$23.1B
Q2 FY26$26.0B
Diluted EPS (GAAP)$2.90−0.7% y/yQ1 FY26
Q3 FY24: $2.99Q3 24$2.99Q1 FY25: $2.92Q1 25$2.92Q2 FY25: $4.27Q2 25$4.27Q3 FY25: $2.88Q3 25$2.88Q1 FY26: $2.90Q1 26$2.90Q2 FY26: $4.27Q2 26$4.27
Data
Q3 FY24$2.99
Q1 FY25$2.92
Q2 FY25$4.27
Q3 FY25$2.88
Q1 FY26$2.90
Q2 FY26$4.27

Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.

Operating margin11.1%−0.8 pts y/yQ1 FY26
Q3 FY24: 12.6%Q3 2412.6%Q4 FY24: 9.9%Q4 249.9%Q1 FY25: 11.9%Q1 2511.9%Q2 FY25: 14.5%Q2 2514.5%Q3 FY25: 11.9%Q3 2511.9%Q4 FY25: 8.3%Q4 258.3%Q1 FY26: 11.1%Q1 2611.1%Q2 FY26: 13.7%Q2 2613.7%
Data
Q3 FY2412.6%
Q4 FY249.9%
Q1 FY2511.9%
Q2 FY2514.5%
Q3 FY2511.9%
Q4 FY258.3%
Q1 FY2611.1%
Q2 FY2613.7%
Free cash flow$2.8B−1.1% y/yQ1 FY26
Q3 FY24: $728.0MQ3 24$728.0MQ4 FY24: $363.0MQ4 24$363.0MQ1 FY25: $2.9BQ1 25$2.9BQ2 FY25: $3.7BQ2 25$3.7BQ3 FY25: $90.0MQ3 25$90.0MQ4 FY25: $964.0MQ4 25$964.0MQ1 FY26: $2.8BQ1 26$2.8BQ2 FY26: $3.1BQ2 26$3.1B
Data
Q3 FY24$728.0M
Q4 FY24$363.0M
Q1 FY25$2.9B
Q2 FY25$3.7B
Q3 FY25$90.0M
Q4 FY25$964.0M
Q1 FY26$2.8B
Q2 FY26$3.1B

Operating cash flow minus capital expenditure, from cash flow statements.

Questions

What were Lowe's first quarter 2026 results?

Total sales were $23.1 billion, net earnings were $1.6 billion, and diluted EPS was $2.90. Adjusted diluted EPS was $3.03, up 3.8% from the prior-year diluted EPS.

Did Lowe's change its full year outlook?

No, it affirmed it. It still expects total sales of $92.0 to 94.0 billion, comparable sales flat to up 2%, and adjusted diluted EPS of approximately $12.25 to $12.75.

How did comparable sales perform?

Comparable sales increased 0.6%, the fourth consecutive quarter of positive comps. Online sales grew 15.5%, and appliances, home services and Pro were strong.

Why did margins decline?

Gross margin fell 70 basis points to 32.68% of sales and operating margin fell to 11.07% from 11.92%. The release does not give a full breakdown of causes, but it notes $96 million of acquisition-related intangible amortization.

How much cash did Lowe's generate and return?

Net cash provided by operating activities was $3,350 million, with capital expenditures of $521 million. Lowe's paid $674 million in dividends and repurchased $363 million of common stock.

Documents

SEC filing