Home improvement retailer Lowe’s (NYSE: LOW) reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 10.3% year on year to $23.08 billion. The company expects the full year’s revenue to be around $93 billion, close to analysts’ estimates. Its non-GAAP profit of $3.03 per share was 2.1% above analysts’ consensus estimates.
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Lowe's (LOW) Q1 CY2026 Highlights:
- Revenue: $23.08 billion vs analyst estimates of $22.95 billion (10.3% year-on-year growth, 0.6% beat)
- Adjusted EPS: $3.03 vs analyst estimates of $2.97 (2.1% beat)
- Adjusted EBITDA: $3.12 billion vs analyst estimates of $3.13 billion (13.5% margin, in line)
- The company reconfirmed its revenue guidance for the full year of $93 billion at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $12.50 at the midpoint
- Operating Margin: 11.1%, in line with the same quarter last year
- Locations: 1,759 at quarter end, up from 1,750 in the same quarter last year
- Same-Store Sales were flat year on year (-1.7% in the same quarter last year)
- Market Capitalization: $124 billion
StockStory’s Take
Lowe’s delivered first quarter results that were slightly ahead of Wall Street’s revenue and profit expectations, with same-store sales remaining flat and operating margin holding steady versus last year. Management pointed to strong spring execution and resilience in the Pro customer base as primary drivers of performance, despite ongoing weakness in DIY discretionary categories. CEO Marvin Ellison highlighted that “continued strength in Pro, Appliances, Online and Home Services” helped offset a slow start to the spring season caused by February storms. The quarter also benefited from successful in-store events and expanded fulfillment options, which contributed to increased customer engagement.
Looking forward, Lowe’s expects its Total Home strategy and expanded loyalty offerings to underpin performance in a challenging macro environment. Management emphasized ongoing investments in technology, particularly in AI-powered tools for both customers and associates, as well as new initiatives like the HomeCare+ subscription service. CFO Brandon Sink noted that “continued investment in our Total Home strategy, including tech-driven productivity efforts and key AI initiatives,” positions Lowe’s to capture market share as conditions improve. Leadership remains cautious on the broader housing market, but is focused on executing sales-driving initiatives and maintaining expense discipline.
Key Insights from Management’s Remarks
Management attributed the quarter’s results to strong execution in Pro, online, and home services, while ongoing innovation and technology adoption continued to differentiate Lowe’s in a competitive market.
- Pro segment momentum: Lowe’s saw continued growth among small- to medium-sized professional customers (“Pro”), supported by a competitive assortment of national brands, robust in-stock levels, and enhanced loyalty rewards. Management indicated that Pro will likely outpace DIY in coming quarters as these customers remain active with repair and maintenance projects.
- Online sales acceleration: Online sales grew 15.5% as enhancements to the digital shopping experience—such as the AI-powered Mylow assistant and free same-day delivery for loyalty members—drove higher engagement and conversion rates. Conversion rates for users of the AI assistant were three times higher than those who did not use the tool.
- Spring event execution: The third annual SpringFest event, with extended savings and targeted member offers, helped drive traffic and conversion across seasonal categories like lawn and garden, patio furniture, and outdoor power equipment. These events also leveraged Lowe’s workwear and pet assortments, which are on track for a national rollout by year-end.
- Home Services and new initiatives: The Home Services segment delivered growth, with installation and repair projects in areas such as HVAC, windows, and doors seeing strong demand. Lowe’s also launched HomeCare+, a subscription service for routine home maintenance, exclusive to loyalty members, aimed at deepening customer relationships and engagement.
- AI and productivity tools: The company’s ongoing investment in AI tools for associates—such as Mylow Companion—has improved in-store productivity, boosted customer satisfaction scores, and enabled faster quote generation for Pro customers. These efforts are part of Lowe’s broader perpetual productivity improvement (PPI) initiatives, which continue to help offset inflationary and cost pressures.
Drivers of Future Performance
Management expects the Total Home strategy, technology adoption, and Pro customer engagement to drive moderate growth, with ongoing inflation and consumer uncertainty acting as potential headwinds.
- Pro and Home Services growth: Management anticipates that continued momentum with Pro customers and expansion of Home Services will help offset ongoing DIY softness. Initiatives like Pro Extended Aisle and the integration of recent acquisitions (FBM and ADG) are expected to broaden Lowe’s reach in both residential and commercial segments.
- Technology and AI investments: Leadership highlighted investments in AI-powered tools for both customers (e.g., Mylow assistant) and employees (e.g., Mylow Companion, demand planning systems) as key to driving productivity, improving customer experience, and supporting margin resilience in the face of higher costs.
- Macro and cost environment: Elevated interest rates, lower housing turnover, and persistent inflation—especially in fuel, tariffs, and commodity-based products—remain risks. Management is focused on disciplined execution, cost mitigation, and ongoing productivity improvements to navigate these headwinds.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the continued rollout and customer adoption of AI-powered tools and loyalty programs, (2) Lowe’s ability to grow Pro and Home Services segments as DIY headwinds persist, and (3) the integration progress and synergy realization from recent acquisitions like FBM and ADG. Execution on productivity initiatives and navigating inflationary and macroeconomic pressures will also be key areas of focus.
Lowe's currently trades at $220.65, up from $218.37 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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