Lowe’s (LOW) Q2 2027 earnings summary

Executive summary

• Q2 sales reached $26 billion, up 8.3% year-over-year, with comparable sales increasing 0.2%, driven by Pro, home services, and a 15.7% surge in online sales.

• Net earnings for Q2 2026 were $2.4 billion, with diluted EPS of $4.27, flat compared to Q2 2025; adjusted diluted EPS rose 1.6% to $4.40, including a $0.11 benefit from tariff refunds.

• Growth was driven by Pro, Online, and Home Services, offsetting soft DIY demand and challenging weather.

• Operational discipline and productivity initiatives supported profitability despite elevated input costs.

• Integration of Foundation Building Materials (FBM) and Artisan Design Group (ADG) progressing, positioning for long-term Pro growth.

Financial highlights

• Gross margin for Q2 2026 was 33.04%, down 80 bps year-over-year, impacted by acquisitions and higher fuel/transportation costs.

• Operating income for Q2 2026 was $3.55 billion (13.67% of sales); net earnings were $2.4 billion.

• SG&A was 17.2% of sales, leveraging 14 bps versus prior year.

• Free cash flow was $3.1 billion; inventory ended at $17.7 billion, up $1.4 billion year-over-year.

• Cash dividends per share increased to $1.25 from $1.20 year-over-year.

Outlook and guidance

• Full-year 2026 sales expected at $92 billion with flat comparable sales; adjusted operating margin projected at 11.6%.

• Diluted EPS guidance is approximately $11.75; adjusted diluted EPS is $12.25, both at the lower end of previous ranges.

• Capital expenditures expected up to $2.5 billion.

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