WS News
19 Aug 2026, 14:21
Lowe’s Stock Rises 2.2% as Pro and Online Growth Offset Weak DIY Demand
Lowe’s (NYSE: LOW) shares rose about 2.2% on Wednesday after the home-improvement retailer reported second-quarter 2026 results showing continued comparable-sales growth, strong momentum in its Pro and digital businesses, and resilient profitability despite persistent pressure on discretionary DIY spending.
The positive stock reaction comes even as Lowe’s narrowed its full-year outlook toward the lower end of its previous ranges, suggesting investors are focusing on underlying business momentum and the company’s ability to maintain earnings in a difficult home-improvement environment.
Sales Rise as Pro and Online Businesses Strengthen
Second-quarter sales increased to $26.0 billion from $24.0 billion a year earlier. Comparable sales rose 0.2%, marking Lowe’s fifth consecutive quarter of positive comparable-sales growth.
Growth was led by Pro customers and home services, while online sales jumped 15.7%. These gains helped offset continued weakness in discretionary DIY spending, which remains sensitive to housing-market conditions and consumer spending patterns.
Net earnings reached $2.4 billion, while diluted EPS was unchanged from a year earlier at $4.27. Excluding $96 million of pre-tax expenses related to the acquisitions of Foundation Building Materials and Artisan Design Group, adjusted EPS increased 1.6% to $4.40.
Both reported and adjusted EPS included an $0.11 benefit from IEEPA tariff refunds.
Lowe’s Narrows 2026 Outlook
The main weakness in the report came from Lowe’s updated full-year guidance. The company now expects fiscal 2026 sales of approximately $92 billion, compared with its previous $92 billion-$94 billion range.
Comparable sales are now expected to be flat, versus the previous forecast of flat to 2% growth. Adjusted EPS is projected at approximately $12.25, compared with the previous $12.25-$12.75 range, while adjusted operating margin is expected at 11.6%.
The guidance reduction indicates that Lowe’s continues to expect a challenging consumer environment, particularly for larger discretionary DIY projects.
Why LOW Stock Is Rising
Despite the softer full-year outlook, Wednesday’s 2.2% gain likely reflects several encouraging underlying trends. Pro, online and home-services sales continue to grow, comparable sales remained positive despite weak DIY demand, and adjusted EPS still increased year over year.
For investors, the report also provides evidence that Lowe’s efforts to expand beyond its traditional DIY customer base are helping make the business more resilient. The strength of its Pro segment is particularly important as Lowe’s competes with Home Depot for professional contractors and larger project spending.
The key issue ahead will be whether continued growth in Pro and digital channels can offset prolonged weakness in discretionary home-improvement demand during the second half of 2026.
Lowe’s (NYSE: LOW) shares rose about 2.2% on Wednesday after the home-improvement retailer reported second-quarter 2026 results showing continued comparable-sales growth, strong momentum in its Pro and digital businesses, and resilient profitability despite persistent pressure on discretionary DIY spending.
The positive stock reaction comes even as Lowe’s narrowed its full-year outlook toward the lower end of its previous ranges, suggesting investors are focusing on underlying business momentum and the company’s ability to maintain earnings in a difficult home-improvement environment.
Sales Rise as Pro and Online Businesses Strengthen
Second-quarter sales increased to $26.0 billion from $24.0 billion a year earlier. Comparable sales rose 0.2%, marking Lowe’s fifth consecutive quarter of positive comparable-sales growth.
Growth was led by Pro customers and home services, while online sales jumped 15.7%. These gains helped offset continued weakness in discretionary DIY spending, which remains sensitive to housing-market conditions and consumer spending patterns.
Net earnings reached $2.4 billion, while diluted EPS was unchanged from a year earlier at $4.27. Excluding $96 million of pre-tax expenses related to the acquisitions of Foundation Building Materials and Artisan Design Group, adjusted EPS increased 1.6% to $4.40.
Both reported and adjusted EPS included an $0.11 benefit from IEEPA tariff refunds.
Lowe’s Narrows 2026 Outlook
The main weakness in the report came from Lowe’s updated full-year guidance. The company now expects fiscal 2026 sales of approximately $92 billion, compared with its previous $92 billion-$94 billion range.
Comparable sales are now expected to be flat, versus the previous forecast of flat to 2% growth. Adjusted EPS is projected at approximately $12.25, compared with the previous $12.25-$12.75 range, while adjusted operating margin is expected at 11.6%.
The guidance reduction indicates that Lowe’s continues to expect a challenging consumer environment, particularly for larger discretionary DIY projects.
Why LOW Stock Is Rising
Despite the softer full-year outlook, Wednesday’s 2.2% gain likely reflects several encouraging underlying trends. Pro, online and home-services sales continue to grow, comparable sales remained positive despite weak DIY demand, and adjusted EPS still increased year over year.
For investors, the report also provides evidence that Lowe’s efforts to expand beyond its traditional DIY customer base are helping make the business more resilient. The strength of its Pro segment is particularly important as Lowe’s competes with Home Depot for professional contractors and larger project spending.
The key issue ahead will be whether continued growth in Pro and digital channels can offset prolonged weakness in discretionary home-improvement demand during the second half of 2026.
