Q2 2026 Lowe's Companies Inc Earnings Call Transcript
Key Points
- Lowe's Companies Inc (LOW) delivered its fifth consecutive quarter of positive comparable sales, with Q2 comps up 0.2% despite a challenging macro environment.
- Strong growth in strategic areas: Pro sales, online sales (up 15.7%), and Home Services all contributed to the company's momentum.
- The company's AI tool, Mylow, has supported over 25 million questions and drives triple the conversion rate for online customers who use it.
- Lowe's Companies Inc (LOW) maintained disciplined expense management through its PPI initiatives, enabling better-than-expected flow-through despite elevated fuel and transportation costs.
- The company generated $3.1 billion in free cash flow in Q2 and returned $673 million to shareholders via dividends, reinforcing its status as a dividend aristocrat.
- Discretionary DIY demand remains under pressure, with comparable transactions down 2.1% in Q2, driven by cautious consumer spending.
- Heightened competitive pricing actions in July, particularly in seasonal categories, negatively impacted sales and comps.
- Elevated fuel, transportation, and energy costs are pressuring margins, with gross margin down 80 basis points year-over-year.
- The company lowered its full-year 2026 outlook to the bottom end of prior guidance, citing persistent macro pressures and softer DIY demand.
- FBM and ADG acquisitions are facing headwinds from a sluggish residential construction market, impacting both top and bottom lines.
(video playing)
Good morning, everyone, and welcome to Lowe's Companies second quarter 2026 earnings conference call. My name is Rob and I'll be your operator for today's call. As a reminder, this conference is being recorded.
I'll now turn the call over to Shelly Hubbard, Vice President of Investor Relations.
'- -
Thank you, and good morning. Here with me today are Marvin Ellison, Chairman and Chief Executive Officer; Bill Boltz, our Executive Vice President, Merchandising; Joe McFarland, our Executive Vice President, Stores; and Brandon Sink, our Executive Vice President and Chief Financial Officer.
I would like to remind you that our notice regarding forward-looking statements is included in our press release this morning, which can be found on Lowe's Investor Relations website.
During this call, we will be making comments that are forward-looking, including our expectations for fiscal 2026. Actual results may
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
