New York, Feb 26, 2026, 06:21 EST — Premarket
- Lowe’s dropped 5.6% Wednesday, finishing the session at $263.02.
- The company is projecting 2026 sales between $92 billion and $94 billion, and expects comparable sales to be flat or rise by as much as 2%.
- Mortgage rates and housing turnover remain in focus as investors search for signs of how spring demand is shaping up.
Lowe’s Companies Inc is drawing attention again ahead of Thursday’s open, with the stock sliding 5.6% after its wary 2026 guidance. Shares settled at $263.02 on Wednesday.
Lowe’s often serves as a pulse check for U.S. home-improvement demand, which has been in a holding pattern. With Americans staying put, large-scale renovations have largely been put on hold.
Spring selling season is almost here—typically, this is when Wall Street gets its clearest sense of demand for paint, flooring, appliances, and other major home upgrades. But this year, caution still hangs in the air.
Lowe’s reported fourth-quarter sales climbing to $20.6 billion, with comparable sales—those from stores open at least a year—ticking up 1.3%. Earnings landed at $1.78 a share, or $1.98 on an adjusted basis after accounting for $149 million in pre-tax charges linked to the Foundation Building Materials and Artisan Design Group acquisitions. Looking ahead, the company is projecting fiscal 2026 sales between $92 billion and $94 billion, with comparable sales ranging from flat to a 2% gain. “While the housing macro remains pressured, we are focused on directing what is within our control,” said Chief Executive Marvin Ellison. Lowe’s Corporate
“Adjusted” earnings exclude items like acquisition-related expenses and amortization of purchased assets—these can obscure year-to-year comparisons. Investors tend to watch these numbers closely when a company’s active on the M&A front.
Housing stocks took a hit alongside Lowe’s on Wednesday, and it didn’t stop with retailers. CEO Marvin Ellison highlighted the “persistent lock-in effect”—those homeowners clinging to ultra-low-rate mortgages. Jake Dollarhide, chief executive at Longbow Asset Management, was more direct: “People are stuck in their homes, a prisoner to their one-, two- or three-percent mortgage rates.” Reuters
Home Depot, which sits right next to Lowe’s in the home improvement space, took a cautious tone this week. Comparable sales in the fourth quarter edged up 0.4%. Looking to fiscal 2026, the company projected comparable sales growth somewhere between flat and 2.0%. CEO Ted Decker pointed to “ongoing consumer uncertainty and pressure in housing” as key factors. ir.homedepot.com
For Lowe’s, traders are zeroed in on whether gains from “Pro” customers, meaning professional contractors, are still enough to balance out weaker do-it-yourself activity. They’ll be listening for hints that acquisition costs may finally ease. Another focus: can Lowe’s keep margins intact if promotions start ramping up?
Still, the risk is hard to ignore: mortgage rates remain elevated, housing turnover barely budges, and buyers continue putting off optional projects. If comps disappoint even slightly under those conditions, profit expectations could quickly come under strain.
U.S. markets kick off at 9:30 a.m. EST. Eyes are on Thursday’s data slate, housing and interest rate indicators in particular. Lowe’s outlook, meanwhile, could keep influencing the sector right through March.
