Lowe's Companies, Inc. · LOW · FY2026 Q1 · Calendar Q2 2026

Lowe's Q1 FY2026: Spring Demand and AI Tools Drive Modest Beat

Lowe's delivered a modest Q1 FY2026 beat, with revenue of $23.1B exceeding consensus by 0.4% and adjusted EPS of $3.03 topping estimates by 2.0%. Growth was led by the Pro segment, a 15.5% jump in online sales, and home services, all supported by strong spring seasonal execution. AI-powered tools -- Mylow and Mylow Companion -- are showing early traction, with conversion rates three times higher for AI-assisted shoppers. Management maintained full-year FY2026 guidance (sales $92-94B, comps flat to +2%, adjusted EPS $12.25-$12.75), signaling confidence in the Total Home strategy and acquisition integration despite an elevated-rate housing environment. The stock's muted reaction (+0.2% abnormal move on 2.3x baseline volume) suggests the market viewed the beat as incremental rather than transformative, with DIY demand recovery and FBM/ADG integration remaining the key swing factors.

Reported Before market openNYSEConsumer Cyclical $118.55B market cap
100quality score

Company context

Snapshot as of publication

Lowe's Companies, Inc., together with its various subsidiary entities, operates as a prominent home improvement retailer serving both the United States and international markets. The company supplies a broad spectrum of items essential for construction, upkeep, renovations, and interior design projects. Its comprehensive product line encompasses major appliances, seasonal and outdoor living essentials, lawn and garden tools, timber, kitchen and bathroom fixtures, power tools, paints, custom millwork, general hardware, flooring options, plumbing components, building materials, decorative accents, lighting solutions, and electrical supplies.…

Earnings scorecard

Reported versus consensus
Reported EPS $3.03 Consensus $3
EPS surprise +2.0% Reported versus consensus
Reported revenue $23.08B Consensus $22.98B
Revenue surprise +0.4% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +1.2% Event window
SPY move +1.0% Same window
Abnormal move +0.2% Stock minus SPY
Volume 2.3× Versus trailing sessions
Subsequent drift +0.5% Up to 20 sessions
LOWSPY benchmark

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Transcript intelligence

What changed

Versus the prior quarter (Q4 FY2025), several positive shifts emerged. Online growth accelerated to 15.5% in Q1, AI tools demonstrated measurable conversion lift (3x for Mylow users), and the company launched HomeCare+, a new subscription maintenance service exclusive to MyLowe's Rewards members. The Pro segment continued to outperform DIY, extending a trend noted in Q4. New initiatives include a $250M Lowe's Foundation investment to train 250,000 skilled-trade workers and a Lionel Messi summer marketing partnership, building on the prior quarter's MrBeast activation. Capex outlook shifted from stable to increasing. However, guidance was reaffirmed rather than raised, and the core housing headwinds -- high mortgage rates and low turnover -- remain unchanged.

Guidance delta

FY2026 guidance was maintained at the levels introduced in Q4 FY2025: total sales of $92-94B, comparable sales flat to +2%, adjusted EPS of $12.25-$12.75, and adjusted operating margin of 11.6-11.8%. Management did not raise guidance despite the Q1 beat, preserving cushion for macro uncertainty and acquisition integration costs.

Key takeaways

  • Q1 FY2026 revenue of $23.1B beat estimates by 0.4%; adjusted EPS of $3.03 beat by 2.0%
  • Comparable sales rose 0.6%, driven by strong spring execution across Pro, appliances, and online channels
  • Online sales grew 15.5%, aided by AI tools and free same-day delivery
  • Mylow AI assistant users convert at 3x the rate of non-users, showing early ROI on AI investment
  • Pro segment outperformed DIY, supported by MyLowe's Pro Rewards and extended aisle initiatives
  • FBM and ADG acquisitions are progressing, with cost synergies and cross-selling opportunities on track

Management priorities

  • Scale HomeCare+ subscription to drive recurring revenue
  • Complete national rollout of workwear and pet private-brand assortments
  • Expand AI capabilities into demand planning, pricing, and replenishment
  • Continue seasonal promotional calendar (Memorial Day, Father's Day, July 4th)
  • Leverage Lionel Messi partnership for summer marketing
  • Advance FBM and ADG integration to capture new-home construction opportunities

Related earnings events

Consumer Cyclical
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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-20T19:22:51.341553+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-29T00:24:05.385834+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-29T00:24:05.383326+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated . For educational purposes only; not investment advice.