Lowe's Companies Inc. (LOW)

Lowe's reported second-quarter 2026 net earnings of $2.4 billion and diluted earnings per share of $4.27 on August 19, 2026, level with $4.27 a year earlier 1.

Net sales rose 8.3% to $26.0 billion 2. Comparable sales, which leave out new locations, rose 0.2%, with average ticket up 2.3% and customer transactions down 2.1% 2.

Chief executive Marvin Ellison credited growth in Pro, online and home services, and said spending on discretionary do-it-yourself projects was under pressure 1.

The company updated its fiscal 2026 outlook to total sales of $92.0 billion, previously $92.0 to $94.0 billion 1. It now expects adjusted diluted earnings per share of about $12.25, previously $12.25 to $12.75 1.

The quarter includes about $80 million of refunds of import tariffs that the Supreme Court ruled unauthorized in February 2026 2. The company says the amount and timing of further refunds remain uncertain 2.

On August 28, 2026, Lowe's named five executives to new posts effective September 1, 2026, including Quonta Vance as head of stores and Seemantini Godbole as chief information and AI officer 4.

Lowe's opened its first hardware store in North Wilkesboro, North Carolina, in 1921, was incorporated in 1952 and has been publicly held since 1961 3.

In 2018 the company announced a retail fundamentals strategy built on merchandising, supply chain, efficiency and customer engagement 6.

Fiscal 2020 was the pandemic surge, when homes became offices and schools 6. Net sales rose 24.2% to $89.6 billion and comparable sales rose 26.1% 6.

The company rolled out curbside pickup in the first quarter of that year and moved Lowes.com to the cloud, which it said allowed triple-digit online sales growth 6.

The company said it spent nearly $1.3 billion on COVID-related support for associates, store safety and communities that year 6.

In late 2020 it unveiled the Total Home strategy, a plan to serve professional builders and homeowners with a full range of products and services 6.

Fiscal 2022 brought the peak and the turn: net sales rose 0.8% to $97.1 billion, helped by a 53rd week, while comparable customer transactions fell 7.6% 5.

In fiscal 2022 it launched a loyalty program for professional customers and added $170 million in annual wage increases effective December 2022 5. It also moved 11 areas to a delivery model that sends bulky goods from distribution centers straight to homes 5.

That year the company repurchased $14.1 billion of its own stock and paid $2.4 billion in dividends 5.

It sold its Canadian retail business on February 3, 2023, after recording $2.5 billion of before-tax costs tied to the sale in fiscal 2022 5.

On June 2, 2025, Lowe's bought Artisan Design Group (ADG) for $1.3 billion in cash 3. ADG designs, distributes and installs flooring, cabinets and countertops for home builders and property managers 3.

On October 9, 2025, it bought Foundation Building Materials (FBM) for $8.8 billion in cash, which the company said would speed its Total Home strategy for professional customers 3.

Fiscal 2025 net sales rose 3.1% to $86.3 billion, driven by the new acquisitions and a 0.2% rise in comparable sales 3.

Net earnings fell 4.4% to $6.7 billion, and diluted earnings of $11.85 per common share replaced $12.23 the year before 3. Before-tax costs of $321 million tied to the two purchases took $0.43 off earnings per share 3.

Cash from operations was $9.9 billion in fiscal 2025, with $2.2 billion spent on capital expenditures and $2.6 billion paid in dividends 3.

Selling and administrative costs grew faster than sales by 72 basis points, a basis point being one hundredth of a percentage point, mainly from employee pay and benefits 3.

Comparable sales fell 1.7% in the first quarter of fiscal 2025, then rose 1.1%, 0.4% and 1.3% in the next three 3.

Home improvement stores

As of January 30, 2026, Lowe's ran 1,759 home improvement stores and outlets in the United States with about 196 million square feet of selling space 3. By July 31, 2026, it ran 1,761 stores 1.

A typical store stocks about 37,000 items and averages about 112,000 square feet of selling space, plus about 32,000 square feet of outdoor garden center 3. About 89% of stores are owned, including stores on leased land 3.

Categories run from appliances, lumber and lawn and garden to paint, tools, flooring and decor 3. Private brands include Kobalt for tools, STAINMASTER and allen+roth 3.

In fiscal 2025, comparable sales rose in five of 14 categories: rough plumbing, appliances, building materials, lawn and garden, and paint 3. In the second quarter of 2026, nine of 13 categories rose, led by rough plumbing, electrical, and tools and hardware 2.

Pro customers, online and home services

Lowe's calls its plan Total Home and lists five parts: more sales to professional customers, online growth, installation services, a loyalty program and better use of store space 3.

Online sales rose 15.7% in the second quarter of 2026, and the company credited strong Pro and home services sales 1.

Installation is done by independent contractors, with kitchens and bath, flooring, appliances, millwork and rough plumbing making most installed sales 3. Lowe's also sells extended protection plans on appliances, tools and other products 3.

Branches: FBM and ADG

More than 540 branch locations serve larger professional customers, delivering and installing building materials for residential and commercial projects 3.

FBM has two lines of business, Ceilings and Wall Systems and Commercial Doors and Hardware, and ADG is a third unit called Interior Finishes 3. None is large enough to be a reportable segment, so they sit in a group called Other 3.

That group had net sales of $1,941 million in the second quarter of 2026, against $138 million a year earlier, before FBM joined 2.

Competitors

Lowe's calls itself the world's second largest home improvement retailer 3. It names national and regional home improvement warehouse chains, lumber yards, hardware and plumbing suppliers, warehouse clubs and online retailers as competitors 3.

People and places

Marvin Ellison has been chairman, president and chief executive since May 2021 and chief executive since July 2018 3. Brandon Sink has been chief financial officer since April 2022 3.

As of January 30, 2026, Lowe's employed about 167,000 full-time and 109,000 part-time associates, mainly in the United States and India 3.

From September 1, 2026, two roles swap: Joseph McFarland, head of stores since August 2018, takes Pro and Home Services, and Quonta Vance, in that post since June 2023, takes stores 34.

The company says the moves are meant to connect its Pro, digital, loyalty, fulfillment and home services capabilities and to give clearer accountability 4.

Lowe's owns and runs more than 120 supply chain facilities, and it can deliver major appliances next day to most US zip codes 3. Its executive offices are in Mooresville, North Carolina 3.

Current problems

On November 25, 2025, Lowe's agreed to pay a civil penalty of $12,500,000 and sign a second consent decree to settle a federal lead-safe renovation matter, without admitting liability 3.

In the second quarter of 2026, gross margin, revenue minus the cost of goods, fell 77 basis points, because of the cost structure of the acquired businesses and higher fuel costs 2.

The umbrella, in words

The main brand is Lowe's, with the private brands Kobalt, STAINMASTER and allen+roth, all held through a wholly owned subsidiary that owns the Lowe's service mark 3.

The subsidiaries list filed with the annual report names two: Lowe's Home Centers, LLC of North Carolina and Foundation Building Materials, Inc. of Delaware 7. It says all other subsidiaries were omitted 7.

Lowe's owns FBM and ADG outright after buying them in 2025 3. FBM adds branches for ceilings, wall systems, doors and hardware, and ADG adds interior finishes for builders 3.

Vanguard Capital Management reported owning 7.5% of Lowe's common stock on a Schedule 13G for March 31, 2026 8.

For fiscal 2026 the company expects comparable sales to be flat, an operating margin of 11.2% and an adjusted operating margin of 11.6% 1.

It also expects net interest expense of about $1.6 billion, an income tax rate of about 24.5% and capital expenditures of up to $2.5 billion 1.

The company expects diluted earnings per share of about $11.75, previously $11.75 to $12.25 1. The outlook includes tariff refunds recognized in the second quarter and leaves out any further refunds in the second half 1.

As of July 31, 2026, $10.5 billion remained available under the board's share repurchase program, which has no expiration date 2.

The September 1, 2026 appointments are meant to help Lowe's move faster on growth in what it calls the next phase of its Total Home strategy 4.

Heading into 2026, the company said it would keep its focus on its Perpetual Productivity Improvement initiatives and on what it can control 3.

The 10-Q says the company believes its focus on execution, productivity and investment positions it to strengthen the business as market conditions improve 2.

Its capital spending guidance for fiscal 2026 is about $2.5 billion, and capital spending for the first six months was $1,063 million 2.

S&P rates its senior debt BBB+ and Moody's Baa1, both with a stable outlook, as of August 27, 2026 2.

The lead-safe consent decree was lodged in a federal court in California and was subject to a public comment period 3.

Lowe's targets net-zero emissions by 2050, with 2030 goals to cut scope 1 and 2 emissions by 42% and scope 3 emissions by 25% from 2021 levels 3.

The prices assigned to the 2025 acquisitions are preliminary, and the company says it will settle them within a measurement period of up to one year 3.

Past

Revenue grew from $65 billion in fiscal 2017 to $86 billion in fiscal 2026, up 3.2% a year over the ten filed years, and rose in 7 of 9 years; the deepest fall was 14% from fiscal 2023 to fiscal 2025. Net income was positive in all ten years. Over the three fiscal years to January 2026, the diluted share count shrank about 3.9% a year, and dividends and buybacks returned about 66% of operating cash flow. Dividends declared per share rose from $1.58 in fiscal 2017 to $4.75 in fiscal 2025. The filings since 2017 show no warning events: no bankruptcy or receivership notice, no debt default notice, no exchange listing notice, no restatement warning, no auditor change, no material cyber incident and no late-report notice. 12

Present

For the fiscal year ended January 30, 2026, Lowe's reported revenue of $86 billion and a profit of $6.7 billion. Shareholders' equity was below zero, so return on equity is not read; gross profitability was about 53 cents per dollar of assets owned; leverage was about 118 cents owed per dollar of assets; the share count shrank 1.4% over the year. Among 11 graded names in its industry family, revenue of $86 billion ranks in the top 15% by size; a net margin of 7.7% ranks in the top 32%; revenue growth of 3.9% a year over the last three filed years ranks in the bottom 41%. The chief executive is Marvin R. Ellison, filing under that title since July 2018, with 8.3 years; the 23 officers and directors filing in the last fifteen months have been on record a median of 6 years; 2 officer or director changes were reported on Form 8-K since October 2023 against 23 people in charge now. 31

Future

A quarterly report (Form 10-Q) for the quarter ending October 31, 2026 is due by December 10, 2026, under the SEC's rules. Cash of $982 million against debt of $37 billion leaves a negative net cash of 67.4% of assets, in the bottom 5% of its family; cash from operations less capital spending is 8.9% of revenue, in the top 23%; a gross margin of 33.5% is in the top 41%. Revenue grew negative 3.9% a year over the last three filed years against positive 3.2% over all ten, slowing and ranking in the top 50% of its family; the newest year grew 3.1%, in the top 41%; capital spending grew 6.6% a year, in the top 35%. Lowe's reported 3 product lines in fiscal 2026: Product at $82 billion (95%), Service at $2.5 billion (3%), Product and Service Other at $1.4 billion (2%); all 3 grew against the year before. 41

How the company operates

Lowe's is classed by the SEC under Retail-Lumber & Other Building Materials Dealers (industry code 5211). In fiscal 2026, Product made up 95% of revenue and Service 3%, with Product and Service Other at 2%; by geography, the United States accounted for 100% and Canada under 1%. 3

New moves

On September 2, 2026, an officer or director change was reported on Form 8-K. On August 28, 2026, a shelf registration (Form S-3) was filed, a large filer's shelf ready for sale. On September 17, 2026, housing starts fell 2.6 percent from July and completions fell 27 percent, with the 30-year mortgage rate at 6.95 percent the same morning; Lowe's is adjacent to this event as building activity affects demand for building materials. 45