MOORESVILLE, N.C., May 20, 2026, 08:03 EDT
Lowe’s Companies kept its full-year forecast on Wednesday after beating quarterly sales and profit estimates, but the shares slipped before the bell as investors looked past the headline beat and back to the weak U.S. housing market.
The report lands in Lowe’s most important season, when spring repair and remodeling demand normally sets the tone for the year. That demand remains uneven: U.S. mortgage rates rose to 6.56% in the week ended May 15, the highest in seven weeks, according to the Mortgage Bankers Association, a fresh drag on home sales and larger renovation work.
Lowe’s said net earnings were $1.6 billion, or $2.90 a share, for the quarter ended May 1. Adjusted earnings, which strip out some acquisition-related costs, were $3.03 a share; sales rose to $23.1 billion from $20.9 billion a year earlier. Comparable sales — sales at established stores and channels, a gauge of underlying demand — rose 0.6%, helped by 15.5% online sales growth and strength in appliances, home services and Pro, its business serving contractors and trade customers. CEO Marvin Ellison cited “challenging housing macro” conditions but said Lowe’s delivered its “fourth consecutive quarter of positive comp sales.” Lowe’s Corporate
The company held its fiscal 2026 outlook for sales of $92 billion to $94 billion, comparable sales ranging from flat to up 2%, and adjusted diluted earnings of $12.25 to $12.75 a share. That was steady, not a raise.
Lowe’s quarterly sales of $23.08 billion topped analysts’ average estimate of $22.97 billion, while adjusted profit beat the $2.97 a share expected by analysts, according to LSEG data cited by Reuters. Still, the stock was down about 3% in premarket trading, with the shares already off more than 9% this year.
That reaction tells the story. A beat was expected to matter less than proof that homeowners are coming back to bigger projects.
D.A. Davidson analyst Michael Baker wrote that “the lack of a comp beat” and Lowe’s “only being in line with Home Depot” could pressure the stock, Barron’s reported. Baker has a Neutral rating and a $275 price target on Lowe’s, according to the report. Barron’s
Home Depot, Lowe’s larger rival, delivered a similar message a day earlier. It reported first-quarter sales of $41.8 billion, up 4.8%, comparable sales growth of 0.6% and adjusted earnings of $3.43 a share, while reaffirming its 2026 guidance. CEO Ted Decker said demand looked “relatively similar” to fiscal 2025 despite greater consumer uncertainty and housing affordability pressure. Home Depot Investor Relations
The NYSE was not on a holiday schedule Wednesday; its core trading session runs from 9:30 a.m. to 4:00 p.m. ET, with Memorial Day on May 25 listed as the next 2026 market holiday. Lowe’s report hit during the premarket window, when price moves can be thinner and sharper than during regular trading.
The risk is that Lowe’s clean spring execution is not enough. If mortgage rates stay high, housing turnover remains slow and consumers keep delaying kitchen, bath, flooring and other big-ticket work, gains in Pro, online and appliances may only offset the drag rather than drive a stronger recovery.
For now, Lowe’s is giving Wall Street a familiar retail message: the company can manage costs and defend its outlook, but it cannot make the housing cycle turn faster.
