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 second quarter of fiscal 2026 was defined by solid top-line growth against a cautious consumer backdrop, as comparable sales rose 0.2% and total revenue expanded at a high-single-digit pace. Management attributed the resilience to continued strength in Pro, Online, and Home Services, while gross margin fell 77 basis points on acquisition cost structure and higher fuel costs. Net earnings were essentially flat, and the quarter included an $80 million pre-tax tariff refund, though the timing of future IEEPA refund collections remains uncertain. Adjusted diluted EPS ticked higher after excluding acquisition-related intangible amortization.
Revenue
$25.96B
+8.34% YoY
EPS (Diluted)
$4.27
0.00% YoY
Gross Margin
33.0%
-0.8 pts YoY
Operating Income
$3.55B
+2.31% YoY
Source: SEC XBRL
Lowes (LOW) reported Q2 FY2026 revenue of $25.96B, up 8.3% year over year. Operating margin was 13.7%, down 0.8 points from 14.5% a year earlier. LOW's fiscal Q2 FY2026 corresponds to calendar Q3 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026 | 4.40 | 4.27 | Beat +3.1% |
| 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% |
Compiled by AI from 10-Q Item 2 of this filing
Comparable sales increased 0.2% in Q2 FY2026, with a 2.3% increase in average ticket partially offset by a 2.1% decline in customer transactions. Online sales contributed approximately 195 basis points to comparable sales.
Source: 10-Q Item 2 MD&A
Gross margin fell 77 basis points to 33.04% of sales, driven by the operational cost structure of 2025 acquisitions and higher fuel costs, partially offset by credit revenue and tariff refunds.
Source: 10-Q Item 2 MD&A
SG&A expense leveraged 25 basis points as a percentage of sales, primarily due to the operational cost structure of acquisitions during 2025.
Source: 10-Q Item 2 MD&A
The company recognized approximately $80 million pre-tax of tariff refunds in Q2 FY2026 after the Supreme Court invalidated IEEPA tariffs, but uncertainty remains on the amount and timing of future refund collections.
Source: 10-Q Item 2 MD&A
For the first six months of fiscal 2026, operating cash flow was $7.0 billion, capital expenditures $1.1 billion, dividends $1.3 billion, debt repayments $2.4 billion, and share repurchases $366 million.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Stockholders' equity was a deficit of $7.44 billion as of July 31, 2026, and the debt-to-equity ratio was negative at -8.51. This indicates liabilities significantly exceed book equity, which may elevate financial risk and constrain flexibility.
Source: 10-Q Balance Sheet (XBRL)
Gross margin declined to 33.04% and operating margin to 13.67% in Q2 FY2026, reflecting acquisition cost structure and higher fuel costs. If these pressures persist, profitability could remain under pressure.
Source: 10-Q Income Statement (XBRL)
Cash and cash equivalents fell 34.7% year over year to $3.17 billion, and the current ratio was 1.10. The modest liquidity cushion could limit the company's ability to absorb unexpected cash needs.
Source: 10-Q Balance Sheet (XBRL)
Operating cash flow decreased 7.9% year over year to $7.01 billion for the first six months of FY2026, driven by timing of prior year income tax payments and working capital changes. A sustained decline could reduce internally generated funding.
Source: 10-Q Cash Flow Statement (XBRL)
The company returned significant cash to shareholders, including $1.35 billion in dividends and $366 million in share repurchases during the first half of FY2026, while equity remained negative. This may further pressure the balance sheet if earnings weaken.
Source: 10-Q Cash Flow Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 25.96 $B | 23.96 $B | +8.34% |
Cost of Revenue $B | 17.38 $B | 15.86 $B | +9.59% |
Gross Profit $B | 8.58 $B | 8.10 $B | +5.88% |
Operating Income $B | 3.55 $B | 3.47 $B | +2.31% |
Net Income $B | 2.40 $B | 2.40 $B | +0.04% |
EPS (Basic) $ | 4.28 $ | 4.28 $ | 0.00% |
EPS (Diluted) $ | 4.27 $ | 4.27 $ | 0.00% |
SG&A Expense $B | 4.46 $B | 4.18 $B | +6.73% |
Answers draw on this SEC filing and the data on this page
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
Lowe's FY2025 revenue grew 3.1% to $86.3B, but net income fell 4.4% to $6.7B as SG&A expenses surged 7.1% and a major acquisition drove investing cash outflows up over 600%, while the company maintained strong operating cash flow of $9.9B.
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