# Lowe's (LOW) Q1 FY2026 earnings

Results filed 2026-05-20 for the quarter ended 2026-05-01. Source page: https://earnings.opennash.com/companies/low/2026-q1/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/60667/000006066726000062/0000060667-26-000062-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total sales | $23.1 billion | compared to $20.9 billion in the prior-year quarter | GAAP |
| Net earnings | $1.6 billion |  | GAAP |
| Diluted EPS | $2.90 | compared to diluted EPS of $2.92 in the first quarter of 2025 | GAAP |
| Adjusted diluted EPS | $3.03 | increased 3.8% compared to the prior-year diluted EPS | non-GAAP |
| Operating income | $2,554 | vs $2,494 a year ago | GAAP |
| Operating margin | 11.07 | vs 11.92 a year ago | GAAP |
| Adjusted operating margin | 11.49 % | -43 basis points vs. LY | non-GAAP |
| Gross margin | 32.68 | -70 basis points vs. LY | GAAP |
| Net cash provided by operating activities | 3,350 | vs 3,379 a year ago | GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Comparable sales | 0.6% | fourth consecutive quarter of positive comp sales |
| Online sales growth | 15.5% |  |
| Stores operated | 1,759 |  |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Total sales | fiscal year 2026 | $92.0 to 94.0 billion |
| Comparable sales | fiscal year 2026 | flat to up 2% |
| Operating margin | fiscal year 2026 | 11.2% to 11.4% |
| Adjusted operating margin | fiscal year 2026 | 11.6% to 11.8% |
| Net interest expense | fiscal year 2026 | approximately $1.6 billion |
| Effective income tax rate | fiscal year 2026 | approximately 24.5% |
| Diluted EPS | fiscal year 2026 | approximately $11.75 to $12.25 |
| Adjusted diluted EPS | fiscal year 2026 | approximately $12.25 to $12.75 |
| Capital expenditures | fiscal year 2026 | up 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%.

## 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.