Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Lowe's delivered 10.3% revenue growth to $23.1B in Q1 FY2026, but gross-margin pressure, higher amortization and interest costs reduced net income 0.8% to $1.6B and diluted EPS to $2.90. Source: 10-Q Item 2 MD&A, pp.17-20
Revenue
$23.08B
+10.26% YoY
EPS (Diluted)
$2.90
-0.68% YoY
Gross Margin
32.7%
-0.7 pts YoY
Operating Income
$2.55B
+2.41% YoY
Source: SEC XBRL
Lowes (LOW) reported Q1 FY2026 revenue of $23.08B, up 10.3% year over year. Operating margin was 11.1%, down 0.8 points from 11.9% a year earlier. Operating cash flow was $3.35B, down 0.9% year over year. LOW's fiscal Q1 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.03 | 3.00 | Beat +0.9% |
| Mar 2026 | 1.98 | 1.96 | Beat +0.8% |
| Dec 2025 | 3.06 | 3.00 | Beat +2.1% |
| Sep 2025 | 4.33 | 4.29 | Beat +1.0% |
Compiled by AI from 10-Q Item 2 of this filing
Net sales increased 10.3% to $23.1B, while comparable sales increased 0.6%; comparable average ticket rose 1.5%, partly offset by a 0.9% decline in comparable customer transactions. Nine of 13 product categories posted positive comparable sales, led by Rough Plumbing, Lawn & Garden and Appliances, with management citing growth in Pro customers and online sales.
Source: 10-Q Item 2 MD&A
Gross margin declined 70 basis points to 32.68%, primarily due to the operational cost structure of businesses acquired in 2025, partly offset by favorable credit revenue. Operating margin declined 85 basis points to 11.07%, as depreciation and amortization deleveraged 32 basis points and net interest expense deleveraged 12 basis points.
Source: 10-Q Item 2 MD&A
Q1 FY2026 included $96M of pre-tax intangible-asset amortization related to the Artisan Design Group and Foundation Building Materials acquisitions. Lowe's reported diluted EPS of $2.90, while adjusted diluted EPS excluding this item was $3.03.
Source: 10-Q Item 2 MD&A
Operating cash flow was $3.35B and capital expenditures were $521M. Lowe's paid $674M in dividends, repaid $2.4B of bond maturities, and spent $363M on settled share repurchases during the quarter.
Source: 10-Q Item 2 MD&A
Management stated that the tariff environment remains dynamic, potentially requiring changes to merchandise assortment, pricing and global supply-chain strategy. The company is the importer of record for certain products, and it said the timing and amount of any refunds of invalidated IEEPA tariffs remain uncertain.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 0 high, 3 medium, 1 low
Cash and equivalents were $786M, down 74.3% year over year, while total liabilities were $64.2B. Although the current ratio was 1.09x, a lower cash balance could reduce near-term financial flexibility if operating cash generation weakened.
Source: 10-Q Balance Sheet (XBRL)
Stockholders' equity was negative $9.3B at May 1, 2026, and total liabilities exceeded total assets. The reported debt-to-equity ratio of -6.93x is not meaningful in the conventional sense because the equity denominator is negative, highlighting reliance on cash flow and debt-market access rather than an equity capital cushion.
Source: 10-Q Balance Sheet (XBRL)
Revenue increased 10.3%, but net income declined 0.8% to $1.63B and operating margin declined to 11.07% from 11.92%. This indicates that cost growth and margin pressure offset much of the benefit from higher sales during Q1 FY2026.
Source: 10-Q Income Statement (XBRL)
Operating cash flow declined 0.9% to $3.35B, while cash used in financing activities increased to $3.05B from $1.55B. Continued shareholder distributions, debt repayment or repurchases could place greater reliance on future operating cash flow and borrowing capacity.
Source: 10-Q Cash Flow Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 23.08 $B | 20.93 $B | +10.26% |
Cost of Revenue $B | 15.54 $B | 13.94 $B | +11.41% |
Gross Profit $B | 7.54 $B | 6.99 $B | +7.97% |
Operating Income $B | 2.55 $B | 2.49 $B | +2.41% |
Net Income $B | 1.63 $B | 1.64 $B | -0.79% |
EPS (Basic) $ | 2.90 $ | 2.93 $ | -1.02% |
EPS (Diluted) $ | 2.90 $ | 2.92 $ | -0.68% |
SG&A Expense $B | 4.42 $B | 4.05 $B | +9.32% |
Answers draw on this SEC filing and the data on this page
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