Lowe's Cos on Wednesday released a sales and profit forecast for the coming year that sits below the consensus outlook on Wall Street, citing softer demand as consumers postpone large home renovation projects and cut back on do-it-yourself spending amid economic uncertainty and elevated borrowing costs.
The home improvement chain said its same-store sales rose 1.3% in the fourth quarter. Despite that gain, the company's forward guidance disappointed investors: Lowe's now expects comparable sales for fiscal 2026 to be flat to up 2%, a range that comes in largely short of analysts' average estimate for a 2% increase, based on data compiled by LSEG.
On profitability, Lowe's projected adjusted earnings per share in a range from $12.25 to $12.75 for the year, below the $12.95 figure analysts had been anticipating. The guidance for both comps and EPS contributed to a roughly 4% decline in the stock in premarket trading on Wednesday, reversing some of the earlier momentum after shares had risen a day earlier in the wake of upbeat results from its larger rival, Home Depot.
The company pointed to consumer behavior changes as part of the backdrop for its outlook, specifically that more Americans are deferring major renovations and tightening spending on do-it-yourself projects amid the broader environment of economic uncertainty and higher borrowing costs. Those factors, Lowe's indicated, are weighing on expected sales and profit for the year ahead.
In addition to the underlying company results and outlook, the article included a reference to ProPicks AI, which evaluates Lowe's alongside thousands of companies using more than 100 financial metrics. The description notes the AI framework examines fundamentals, momentum, and valuation without bias, and it cited past winners identified by the model including Super Micro Computer and AppLovin with sample performance figures provided.
Market reaction and positioning
Shares of Lowe's fell about 4% before markets opened on the day the guidance was published. The stock had earlier moved higher following positive results from a larger peer, but the company's own forward outlook tempered investor enthusiasm.
What the company reported - key facts
- Same-store sales increase in Q4: 1.3%.
- 2026 comparable-sales forecast: flat to up 2% (below analysts' average expectation of a 2% jump, per LSEG).
- Adjusted EPS guidance for 2026: $12.25 to $12.75 (versus analyst expectation of $12.95).
- Shares down approximately 4% in premarket trading after the guidance was released.