LOW
The beat wasn’t enough to make everyone smile
Lowe’s did the part investors wanted: it beat first-quarter EPS and revenue estimates and kept its fiscal 2026 outlook intact. But then the analysts showed up with a collective shrug and a fresh round of price-target cuts, which is basically Wall Street’s version of saying, “Nice work, but we’re not handing out confetti yet.”
The numbers were good. The bar was higher.
The home-improvement retailer posted adjusted EPS of $3.03 versus the Street’s $2.97 estimate, and revenue came in at $23.1 billion, also ahead of expectations. Management pointed to solid spring execution and momentum in Pro, Appliances, Online, and Home Services, which helped Lowe’s deliver a fourth straight quarter of positive comparable sales.
Still, the guidance is where the mood gets a little more complicated:
- Fiscal 2026 sales outlook: $92 billion to $94 billion, basically in line
- Comparable sales: flat to up 2%
- GAAP EPS: $11.75 to $12.25, below the $12.44 estimate
- Adjusted EPS: $12.25 to $12.75, which brackets the Street’s $12.60
The analyst parade lowered its own expectations
Baird kept an Outperform rating but cut its target to $270 from $320. KeyBanc and Piper Sandler also trimmed targets while keeping bullish-ish ratings, and BofA and TD Cowen went more cautious with Neutral/Hold calls and lower targets. Translation: Lowe’s is still doing fine, but nobody wants to pretend housing is suddenly on a superhero arc.
The stock fell 2.2% to $216.60, which tells you investors are treating this like a decent report with a cloudy ceiling. Big picture: Lowe’s can still do the basics well, but in a shaky housing backdrop, “good enough” doesn’t always get you a standing ovation.