Lowe's Companies (LOW) LOW Q1 Financial Results Summary
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Lowe’s Companies, Inc. (LOW) Q1 2026 Financial Results Summary
Lowe’s Companies, Inc. (NYSE: LOW) released its first quarter 2026 financial results on May 20, 2026. Here’s a summary of the key metrics and highlights from the report.
Financial Highlights
- Net Earnings: $1.6 billion for Q1 2026, compared to $1.641 billion in Q1 2025.
- Diluted EPS:
- Q1 2026: $2.90
- Q1 2025: $2.92
- Percentage Change: Decrease of 0.7% year-over-year.
- Adjusted Diluted EPS:
- Q1 2026: $3.03 (after excluding pre-tax expenses related to acquisitions)
- Q1 2025: $2.92
- Percentage Change: Increase of 3.8% year-over-year.
- Total Sales:
- Q1 2026: $23.1 billion
- Q1 2025: $20.9 billion
- Percentage Change: Increase of 10.6% year-over-year.
- Comparable Sales: Increased by 0.6% compared to Q1 2025, supported by:
- 15.5% growth in online sales.
- Continued strength in appliances, home services, and Pro sales.
- Gross Margin:
- Q1 2026: 32.68%
- Q1 2025: 33.38%
- Percentage Change: Decrease of 2.1 percentage points year-over-year.
- Operating Income:
- Q1 2026: $2.55 billion, approximately 11.07% of sales.
- Q1 2025: $2.49 billion, approximately 11.92% of sales.
- Percentage Change: Increase of 2.4% year-over-year.
- Net Interest Expense:
- Q1 2026: $399 million
- Q1 2025: $337 million
- Percentage Change: Increase of 18.5% year-over-year.
- Effective Income Tax Rate:
- Q1 2026: 24.5%
- Q1 2025: 23.9%
- Percentage Change: Increase of 2.5% year-over-year.
Capital Allocation
- Dividends Paid: $674 million in total dividend payments during the quarter.
- Dividend Per Share: $1.20 for Q1 2026 compared to $1.15 in the prior year.
- Share Repurchase: $363 million in share repurchases occurred during the quarter.
Business Outlook
Lowe’s affirmed its outlook for the full fiscal year 2026, including:
- Total Sales Forecast: $92.0 to $94.0 billion, representing an increase of approximately 7% to 9% compared to the previous year.
- Comparable Sales Projection: Expected to be flat to up 2% compared to the prior year.
- Operating Margin Guidance: Expected to be between 11.2% and 11.4%.
- Adjusted Operating Margin Guidance: Expected to be between 11.6% and 11.8%.
- Net Interest Expense: Approximately $1.6 billion.
- Effective Income Tax Rate: Approximately 24.5%.
- Diluted EPS Guidance: Expected to be between $11.75 and $12.25.
- Adjusted Diluted EPS Guidance: Expected to be between $12.25 and $12.75.
- Capital Expenditures: Expected to be up to $2.5 billion.
Additional Information
- Number of Stores: Lowe’s operated 1,759 stores as of May 1, 2026, totaling 196.0 million square feet of retail space.
- Sustainability Commitment: Lowe’s reinforced its commitment to creating shareholder value through disciplined capital allocation strategies and operational performance.
For further details, Lowe's has scheduled a conference call to discuss Q1 2026 operating results on the same day of the report release, which can be accessed on their investor relations website.
Here are the extracted tables from the press release:
Consolidated Statements of Income
In Millions, Except Per Share and Percentage Data
Note: All amounts are in millions.
| Three Months Ended | May 1, 2026 | May 2, 2025 |
|---|---|---|
| Net Earnings | $23,078 | $20,930 |
| Cost of Sales | $15,535 | $13,944 |
| Gross Margin | $7,543 | $6,986 |
| Selling, General and Administrative Expense | $4,423 | $4,046 |
| Depreciation and Amortization | $566 | $446 |
| Operating Income | $2,554 | $2,494 |
| Interest - Net | $399 | $337 |
| Pre-tax Earnings | $2,155 | $2,157 |
| Income Tax Provision | $527 | $516 |
| Net Earnings | $1,628 | $1,641 |
| Weighted Average Common Shares - Basic | 559 | 559 |
| Basic Earnings Per Common Share | $2.90 | $2.93 |
| Weighted Average Common Shares - Diluted | 560 | 560 |
| Diluted Earnings Per Common Share | $2.90 | $2.93 |
| Cash Dividends Per Share | $1.20 | $1.15 |
(1) Under the two-class method, earnings per share is calculated using net earnings allocable to common shares, which is derived by reducing net earnings by the earnings allocable to participating securities. Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were $1,623 million for the three months ended May 1, 2026, and $1,636 million for the three months ended May 2, 2025.
Consolidated Balance Sheets
In Millions, Except Par Value Data
Note: All amounts are in millions.
| May 1, 2026 | May 2, 2025 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $786 | $3,054 |
| Short-term investments | $458 | $368 |
| Receivables - net | $1,151 | $96 |
| Merchandise inventory - net | $18,447 | $18,335 |
| Other current assets | $1,320 | $822 |
| Total current assets | $22,162 | $22,675 |
| Property, less accumulated depreciation | $18,254 | $17,636 |
| Operating lease right-of-use assets | $4,182 | $3,799 |
| Long-term investments | $247 | $300 |
| Deferred income taxes - net | — | $118 |
| Goodwill | $3,945 | $311 |
| Intangible assets - net | $5,807 | $274 |
| Other assets | $344 | $259 |
| Total assets | $54,941 | $45,372 |
| Liabilities and shareholders' deficit | ||
| Current liabilities: | ||
| Short-term borrowings | $380 | — |
| Current maturities of long-term debt | $810 | $4,183 |
| Current operating lease liabilities | $662 | $562 |
| Accounts payable | $11,975 | $11,235 |
| Accrued compensation and employee benefits | $972 | $853 |
| Deferred revenue | $1,629 | $1,500 |
| Other current liabilities | $3,846 | $4,055 |
| Total current liabilities | $20,274 | $22,388 |
| Long-term debt, excluding current maturities | $36,751 | $30,541 |
| Noncurrent operating lease liabilities | $3,937 | $3,669 |
| Deferred income taxes - net | $1,239 | — |
| Deferred revenue - Lowe's protection plans | $1,248 | $1,266 |
| Other liabilities | $762 | $762 |
| Total liabilities | $64,211 | $58,626 |
| Shareholders' deficit: | ||
| Common stock, $0.50 par value: | $280 | $280 |
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