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Home Depot and Lowe's Report Quarterly Results; Both Companies Issue Fiscal 2026 Guidance

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Home Depot & Lowe's Post Mixed Results; Both Issue Cautious 2026 Guidance

Home Depot's sales rose 4.8% but earnings fell short, while Lowe's saw a strong 2.6% adjusted EPS gain. Both retailers cited lingering housing headwinds and consumer uncertainty.

The Home Depot: Q1 Fiscal 2026 Results

(Period ended May 3, 2026)

Home Depot reported a 4.8% increase in net sales to $41.8 billion, up from $39.9 billion in the same quarter last year. However, net earnings slipped to $3.3 billion ($3.30 per diluted share) from $3.4 billion ($3.45 per share) a year earlier.

On an adjusted basis, diluted EPS was $3.43, compared to $3.56 in Q1 fiscal 2025. This adjustment excludes amortization related to the SRS Distribution acquisition.

  • Comparable Sales: Increased by 0.6% overall and 0.4% in the U.S. Foreign exchange added roughly 55 basis points to comparable sales.
  • Key Driver: The company noted that underlying demand remained similar to fiscal 2025 levels, constrained by consumer uncertainty and housing affordability pressure.

Lowe's: Q4 Fiscal 2025 Results

(Quarter ended January 30, 2026)

Lowe's reported total sales of $20.6 billion, up significantly from $18.6 billion in the prior-year quarter. Comparable sales increased by 1.3%, driven by growth in Pro, online, and home services, as well as holiday performance.

Adjusted diluted EPS rose 2.6% year-over-year to $1.98, after excluding $149 million in pre-tax acquisition expenses. GAAP diluted EPS was $1.78.

"Our Total Home strategy is resonating with both our Pro and DIY customers," said Marvin R. Ellison, Lowe's chairman, president, and CEO.

  • Capital Allocation: Lowe's paid $673 million in dividends during the quarter, totaling $2.6 billion for the full fiscal year.

Fiscal 2026 Guidance

Both companies issued projections for their respective fiscal years, reflecting ongoing market uncertainty.

The Home Depot (Fiscal Year 2026)
  • Total Sales Growth: Approximately 2.5% to 4.5%
  • Comparable Sales Growth: Flat to 2.0%
  • Gross Margin: Approximately 33.1%
  • Operating Margin (GAAP): 12.4% to 12.6%; Adjusted: 12.8% to 13.0%
  • Diluted EPS Growth (GAAP): Flat to 4.0% from $14.23; Adjusted: Flat to 4.0% from $14.69
  • New Store Openings: Approximately 15
  • Capital Expenditures: Approximately 2.5% of total sales
Lowe's (Fiscal Year 2026)
  • Total Sales: $92.0 billion to $94.0 billion (an increase of ~7% to 9%)
  • Comparable Sales Growth: Flat to 2.0%
  • Operating Margin: 11.2% to 11.4%; Adjusted: 11.6% to 11.8%
  • Diluted EPS: $11.75 to $12.25; Adjusted: $12.25 to $12.75
  • Capital Expenditures: Approximately $2.5 billion

Additional Context

  • Dividend Increase: Home Depot's board approved a 1.3% quarterly dividend increase to $2.33 per share ($9.32 annually), marking its 156th consecutive quarter of paying a cash dividend. The dividend is payable March 26, 2026.
  • Store Count: As of their respective period ends, Home Depot operated 2,361 retail stores and over 1,280 SRS locations across the U.S., Canada, and Mexico. Lowe's operated 1,759 stores.
  • Workforce: Home Depot reported a headcount of over 470,000 associates.
  • Lowe's Bonuses: Lowe's awarded $125 million in discretionary bonuses to frontline associates.