What happened
Lowe's shares declined approximately 2.0% in pre-open trading following the release of the company's fiscal first-quarter 2026 results. The retailer posted adjusted diluted earnings per share of $3.03, a 3.8% increase versus the prior year, and reported total sales of $23.1 billion. Both metrics beat Wall Street estimates.
Full-year guidance and market reaction
Despite the quarterly outperformance, Lowe's provided fiscal 2026 guidance for adjusted diluted EPS in a range of $12.25 to $12.75. The midpoint of that range is below the analyst consensus figure of $12.59, which left investors disappointed and contributed to the pre-open share decline.
The company reaffirmed its fiscal 2026 sales outlook of $92.0 billion to $94.0 billion and forecast comparable sales to be flat to up 2%. While management held that guidance steady, the targets suggest limited acceleration in sales momentum in the near term and helped keep the stock under pressure heading into the regular session.
Operational drivers and one-time items
On the operational side, comparable sales rose 0.6% for the quarter. Management pointed to a strong spring selling season, a 15.5% increase in online sales, and continued strength in appliance sales and Pro customer business as positive contributors to results. Those areas offered encouraging signs for the quarter.
At the same time, Lowe's recorded $96 million of pre-tax expenses related to its acquisitions of Foundation Building Materials and Artisan Design Group. These acquisition-related costs weighed on GAAP earnings for the period.
Analyst moves and sector context
Analysts had already been trimming price targets in the days before the report. Wells Fargo reduced its target to $260 from $290, Bernstein cut its target to $281 from $303, and Truist lowered its target to $280 from $293. Those cuts reflect a broader reassessment of demand in the home-improvement sector.
Lowe's had fallen about 6% since the start of the year, underperforming the broader market. The report noted that economic uncertainties have weighed on consumer sentiment amid geopolitical tensions, and that sector peer Home Depot also experienced pressure during the session. The commentary underscores that current headwinds are influencing multiple players in the home-improvement space, linked to a sluggish housing market and constrained consumer spending.
Bottom line
In sum, although Lowe's topped quarterly estimates for adjusted EPS and sales, investor focus on the conservative full-year EPS range, acquisition-related expense drag, and a difficult macro backdrop led to the stock sliding in pre-market trade. Management's reaffirmed sales and comparable-sales guidance suggests limited near-term upside, keeping investor caution elevated as the company moves through fiscal 2026.
Key data points cited
- Adjusted diluted EPS: $3.03, up 3.8% year over year.
- Total sales: $23.1 billion.
- Fiscal 2026 adjusted diluted EPS guidance: $12.25 to $12.75 (midpoint below analyst consensus of $12.59).
- Fiscal 2026 total sales guidance: $92.0 to $94.0 billion.
- Comparable sales guidance: flat to up 2%; quarterly comparable sales increased 0.6%.
- Online sales growth in the quarter: 15.5%.
- Acquisition-related pre-tax expenses recognized: $96 million.