Retail
Lowe's delivered strong Q2 FY2026 revenue growth of 10.3% to $23.1B, but net income slipped 0.8% to $1.6B as higher SG&A costs and a lower gross margin compressed profitability despite solid operating cash flow of $3.4B.
Key risk: Negative Stockholders' Equity and High Leverage
Lowe's carries negative stockholders' equity of -$9.3B, resulting in a debt-to-equity ratio that is not meaningfully interpretable in traditional terms (-6.93x). Total liabilities of $64.2B significantly exceed total assets of $54.9B, indicating the company is technically insolvent on a book-value basis, a structure sustained primarily through strong and consistent operating cash flows.
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