Lowe's Q1 adjusted EPS $3.03 beats

Lowe's reported first-quarter results on Wednesday that topped Wall Street's profit expectations and left its full-year outlook unchanged, giving investors an early read on U.S. home-improvement demand ahead of the Memorial Day selling period. The company said adjusted diluted earnings per share were $3.03 for the quarter ended May 1, above the $2.97 analyst estimate cited by market data services. Revenue was $23.08 billion, and comparable sales rose 0.6%. The Mooresville, North Carolina-based retailer said diluted earnings per share were $2.90, down from $3.06 a year earlier, while net earnings fell to $1.6 billion from $1.8 billion. Lowe's reaffirmed its fiscal 2026 outlook for adjusted diluted earnings per share of $12.25 to $12.75 and sales of $92 billion to $94 billion. (corporate.lowes.com) ### How did Lowe's get past a still-cautious home-improvement backdrop? Marvin Ellison, Lowe's chairman, president and chief executive, said in the earnings release that the company saw "strong spring demand, positive comparable sales, and online sales growth." He said those gains were supported by Pro and online momentum, even as Lowe's continued to face pressure in what it called "DIY discretionary demand." (corporate.lowes.com) The quarter's 0.6% comparable-sales increase compared with a 4.1% decline in the year-earlier period, according to the company's release. Lowe's said favorable spring weather, growth in Pro customer sales and online demand contributed to the improvement. ### What numbers stood out inside the quarter? Total sales were $23.078 billion in the first quarter, compared with $21.4 billion a year earlier, Lowe's said. (corporate.lowes.com) Operating income was $2.3 billion, compared with $2.6 billion in the prior-year quarter, and adjusted operating income was $2.4 billion. The company said adjusted diluted earnings per share excluded pre-tax acquisition-related costs tied to the Artisan Design Group deal. (corporate.lowes.com) Lowe's announced that acquisition in April as part of its push into the professional contractor market. ### Why did Lowe's keep guidance unchanged? Lowe's said it still expects full-year comparable sales to range from flat to up 1% and operating margin to be 12.3% to 12.4%. (corporate.lowes.com) The company also maintained its forecast for capital expenditures of about $2.5 billion. The unchanged guidance suggests Lowe's is not yet revising its annual view after one quarter, despite the earnings beat. (corporate.lowes.com) The company had already outlined those targets when it reported fourth-quarter results in February. ### What does this say about the season Lowe's is entering now? May 20 is the day Lowe's had scheduled its first-quarter earnings webcast for 9 a.m. (corporate.lowes.com) Eastern time, according to a company notice issued on May 13. The timing puts the report just ahead of Memorial Day, one of the busiest seasonal periods for outdoor projects, appliances and home-maintenance purchases. Lowe's said a replay of the webcast would be available from noon Eastern on May 20 through May 19, 2027, on its investor relations site. Investors will be listening for any additional comments from executives on spring traffic, Pro demand and spending trends as the company moves into the summer selling season. (corporate.lowes.com) ### What comes next for Lowe's investors? Fiscal 2026 guidance remains the next benchmark: $12.25 to $12.75 in adjusted diluted earnings per share, $92 billion to $94 billion in sales, and flat to 1% comparable-sales growth, Lowe's said. The company's next formal update will come with second-quarter results later in 2026. (corporate.lowes.com 1) (corporate.lowes.com 2)