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Q2 sales jump as Lowe’s (NYSE: LOW) sets 2026 earnings at low end of range

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

LOWES COMPANIES INC (LOW) reported solid second-quarter 2026 results with some margin pressure and slightly softer full‑year guidance. For the quarter ended July 31, 2026, net sales were $26.0 billion versus $24.0 billion a year ago, and net earnings were $2.4 billion. Diluted EPS was $4.27, flat year over year, while adjusted diluted EPS rose 1.6% to $4.40, helped by a $0.11 benefit from IEEPA tariff refunds and offset by $96 million of pre‑tax acquisition‑related amortization.

Comparable sales grew 0.2%, driven by Pro and home services and a 15.7% increase in online sales, with ongoing pressure in discretionary DIY categories. Operating margin was 13.67%, down from 14.48% last year. Lowe’s operated 1,761 stores totaling 196.0 million square feet and generated $7.0 billion of operating cash flow in the first half. The company returned $673 million in dividends during the quarter and now guides fiscal 2026 total sales to $92.0 billion, flat comparable sales, operating margin of 11.2%, and adjusted diluted EPS of about $12.25, all at the low end of prior ranges.

Positive

  • Quarterly net sales increased to $26.0 billion from $24.0 billion, with online sales up 15.7% and a fifth consecutive quarter of positive comps.
  • First‑half operating cash flow reached $7.0 billion, supporting $673 million of dividends in the quarter and planned up to $2.5 billion of 2026 capital expenditures.

Negative

  • Full‑year 2026 outlook was tightened to the low end of prior ranges, with flat comparable sales and operating margin of 11.2%, down from last year’s 13.29% for the first half.
  • Quarterly operating margin declined to 13.67% from 14.48%, and reported diluted EPS of $4.27 was flat despite roughly $2 billion of additional sales.

Filing Explained

The furnished disclosure adds a July 31 balance-sheet view: $3,172 million cash versus $35,204 million long-term debt, plus $2,352 million current maturities.

Lowe’s furnished its second-quarter results on August 19, 2026 under Item 2.02; the exhibits remain a furnished disclosure rather than a filing under Section 18, and the balance sheet shows 561 million common shares with a $7,437 million shareholders’ deficit at July 31, 2026.

“Furnished” describes the reporting status of the release and infographic: the company says they are not deemed filed for Section 18 purposes.

The same balance sheet reports $3,172 million of cash and cash equivalents, $2,352 million of current debt maturities, and $35,204 million of long-term debt excluding those maturities.

For the six months ended July 31, 2026, operating activities provided $7,009 million, while financing activities included $2,397 million of debt repayment, $1,346 million of cash dividends, and common-stock repurchases.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Net Sales $25,956 million Three months ended July 31, 2026 net sales
Q2 2026 Net Earnings $2,399 million Three months ended July 31, 2026 net earnings
Q2 2026 Diluted EPS $4.27 Three months ended July 31, 2026 diluted earnings per share, as reported
Q2 2026 Adjusted Diluted EPS $4.40 Three months ended July 31, 2026 adjusted diluted EPS excluding acquisition impacts
Q2 2026 Comparable Sales 0.2% Quarterly comparable sales growth
Q2 2026 Online Sales Growth 15.7% Increase in online sales versus prior‑year quarter
FY 2026 Sales Outlook $92.0 billion Guidance for total sales for fiscal year 2026
Dividends Paid in Quarter $673 million Dividends paid during Q2 2026
comparable sales financial
"Comparable sales for the quarter increased 0.2%, driven by strong performance"
"Comparable sales" are the total sales from stores or products that have been open for a certain period, usually the same time last year or last quarter. They help show whether a business is growing by comparing similar locations or products over time, much like checking if your favorite store's sales are going up compared to previous years.
adjusted diluted earnings per share financial
"Excluding these expenses, second quarter 2026 adjusted diluted EPS1 increased 1.6%"
Adjusted diluted earnings per share is the company’s net profit per share after accounting for potential extra shares (from options or convertible securities) and removing one‑time or unusual items so the number reflects ongoing business results. Think of it like timing a runner’s steady pace after excluding a few unexpected stops; it gives investors a clearer view of sustainable profit available to each share. Investors use it to compare companies and judge underlying profitability and valuation without short‑term distortions.
operating margin financial
"Operating income as a percentage of sales (operating margin) of 11.2%"
Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.
cash flow hedges financial
"Cash flow hedges – net of tax"
A cash flow hedge is an accounting label companies use when they enter financial contracts—like currency or interest-rate agreements—to protect expected future cash payments or receipts from unpredictable moves. For investors, it signals that the company is trying to smooth out future cash variability (think of locking in a price to avoid surprises), which can reduce reported profit swings but also means the company has exposure to derivative instruments and their associated risks.
non-GAAP financial measures financial
"Adjusted diluted earnings per share is a non-GAAP financial measure"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
IEEPA tariff refunds financial
"Both diluted EPS and adjusted diluted EPS1 include an $0.11 benefit from IEEPA tariff refunds"
Refunds under the International Emergency Economic Powers Act (IEEPA) are repayments of import duties, fees, or penalties that were charged because of trade restrictions or sanctions put in place under emergency authority and later reversed, modified, or found inapplicable. For investors, these refunds can change a company’s past cash outflows and future cost structure—similar to getting a billed charge returned after a rule change—affecting reported earnings or cash available for other uses.
Net sales $25,956 million $1,997 million vs. $23,959 million in Q2 2025
Net earnings $2,399 million $1 million vs. $2,398 million in Q2 2025
Diluted EPS $4.27 No change vs. $4.27 in Q2 2025
Adjusted diluted EPS $4.40 +1.6% vs. $4.33 in Q2 2025
Operating margin 13.67% Down from 14.48% in Q2 2025
Comparable sales 0.2% Positive comps for the fifth consecutive quarter
Online sales growth 15.7% Increase versus prior‑year quarter
Operating cash flow (six months) $7,009 million Down from $7,610 million in the first half of 2025
Guidance

For fiscal 2026, Lowe’s guides to total sales of $92.0 billion, flat comparable sales, operating margin of 11.2%, adjusted operating margin of 11.6%, net interest expense of about $1.6 billion, effective tax rate of about 24.5%, diluted EPS of approximately $11.75, adjusted diluted EPS of approximately $12.25, and capital expenditures of up to $2.5 billion.

FAQ

How did LOW (Lowe’s Companies, Inc.) perform financially in Q2 2026?
Lowe’s reported Q2 2026 net sales of $26.0 billion and net earnings of $2.4 billion. Diluted EPS was $4.27, flat year over year, while adjusted diluted EPS increased 1.6% to $4.40, including a $0.11 benefit from tariff refunds.

What were LOW’s Q2 2026 comparable sales and online growth?
For Q2 2026, Lowe’s delivered comparable sales growth of 0.2% and online sales growth of 15.7%. Pro and home services strength offset macro pressure on discretionary DIY spending, contributing to the company’s fifth consecutive quarter of positive comps.

What is Lowe’s fiscal year 2026 outlook according to this 8-K for LOW?
For fiscal 2026, Lowe’s expects total sales of $92.0 billion and flat comparable sales. Guidance includes operating margin of 11.2%, adjusted operating margin of 11.6%, diluted EPS of about $11.75, and adjusted diluted EPS of about $12.25.

How much did LOW return to shareholders in Q2 2026 and what is planned for capex?
In Q2 2026, Lowe’s paid $673 million in dividends to shareholders. For fiscal 2026, the company plans capital expenditures of up to $2.5 billion, reflecting ongoing investment in its Total Home strategy and infrastructure.

How did acquisitions impact LOW’s Q2 2026 results?
In Q2 2026, Lowe’s recorded $96 million in pre‑tax expenses for intangible amortization related to the Foundation Building Materials and Artisan Design Group acquisitions. Excluding these, adjusted diluted EPS rose to $4.40 compared with $4.33 in the prior year.

What were LOW’s key profitability metrics in Q2 2026?
Lowe’s reported gross margin of 33.04% and operating margin of 13.67% in Q2 2026. Adjusted operating margin, excluding acquisition‑related amortization, was 14.04%, down slightly from 14.66% in the second quarter of 2025.

What does the 8-K say about LOW’s store base and footprint?
As of July 31, 2026, Lowe’s operated 1,761 stores with 196.0 million square feet of retail selling space. The company also operated over 540 branches and 120 distribution centers, supporting its Pro, DIY, online, and home services businesses.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Understanding 8-K Material Events →
LOWES COMPANIES INC0000060667false00000606672026-08-192026-08-19

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 19, 2026
lowesgraphicimage01.jpg
LOWE’S COMPANIES, INC.
(Exact name of registrant as specified in its charter)
North Carolina1-789856-0578072
(State or other jurisdiction
of incorporation)		(Commission File
Number)		(IRS Employer
 Identification No.)
1000 Lowes Blvd., Mooresville, NC
28117
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code:
(704) 758-1000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.50 per shareLOWNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐Emerging growth company
☐If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02    Results of Operations and Financial Condition.

On August 19, 2026, Lowe’s Companies, Inc. (the “Company”) issued a press release and related infographic, furnished as Exhibits 99.1 and 99.2, respectively, and incorporated herein by reference, announcing the Company’s financial results for its second quarter ended July 31, 2026.

The information provided pursuant to Item 2.02, including the exhibits attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits:
Exhibit No.Description
99.1
Press Release, dated August 19, 2026, announcing the financial results of Lowe’s Companies, Inc. for its second quarter ended July 31, 2026.
99.2
Infographic relating to the financial results of Lowe’s Companies, Inc. for its second quarter ended July 31, 2026.
104Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
LOWE’S COMPANIES, INC.
Date: August 19, 2026
By:/s/ Dan C. Griggs, Jr.
Name:Dan C. Griggs, Jr.
Title:Senior Vice President, Tax and Chief Accounting Officer



Exhibit 99.1
lowesgraphicimage01a.jpg
August 19, 2026
For 6:00 a.m. ET Release

LOWE’S REPORTS SECOND QUARTER 2026 SALES AND EARNINGS RESULTS
— Diluted EPS of $4.27; Adjusted Diluted EPS1 of $4.40 —
— Comparable Sales Increased 0.2% —
— Updates Full Year 2026 Outlook —

MOORESVILLE, N.C., August 19, 2026 – Lowe’s Companies, Inc. (NYSE: LOW) today reported net earnings of $2.4 billion and diluted earnings per share (EPS) of $4.27 for the quarter ended July 31, 2026, compared to diluted EPS of $4.27 in the second quarter of 2025. During the second quarter ended July 31, 2026, the company recognized $96 million in pre-tax expenses associated with the acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG). Excluding these expenses, second quarter 2026 adjusted diluted EPS1 increased 1.6% to $4.40 compared to the prior-year adjusted diluted EPS. Both diluted EPS and adjusted diluted EPS1 include an $0.11 benefit from IEEPA tariff refunds.

Total sales for the quarter were $26.0 billion, compared to $24.0 billion in the prior-year quarter. Comparable sales for the quarter increased 0.2%, driven by strong performance in Pro and home services sales, as well as a 15.7% increase in online sales, partially offset by persistent DIY macro pressures.

“Sustained growth in Pro, Online and Home Services led to our fifth consecutive quarter of positive comp sales, despite pressure in discretionary DIY spending,” said Marvin R. Ellison, Lowe’s chairman, president and CEO. “While the near-term remains dynamic, our teams are executing at a high level, advancing our Total Home strategy and investing to drive growth and profitability. I would like to thank all of our frontline associates for their hard work and dedication to our customers.”

As of July 31, 2026, Lowe’s operated 1,761 stores, representing 196.0 million square feet of retail selling space.

Capital Allocation
The company remains committed to generating sustainable shareholder value through a disciplined focus on its capital allocation program. During the quarter, the company paid $673 million in dividends.

















1 Adjusted diluted earnings per share is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures Reconciliation” section of this release for additional information, as well as reconciliations between the company’s GAAP and non-GAAP financial results.


Lowe’s Business Outlook

The company is updating its outlook for fiscal year 2026 to reflect operational results for the first half of the year as well as current demand trends.

Fiscal year 2026 outlook also includes tariff refunds recognized during the second quarter and excludes any potential additional tariff refunds in the second half of the year.

Fiscal Year 2026 Outlook
•Total sales of $92.0 billion (previously $92.0 to 94.0 billion)
•Comparable sales expected to be flat as compared to prior year (previously flat to up 2%)
•Operating income as a percentage of sales (operating margin) of 11.2% (previously 11.2% to 11.4%)
•Adjusted1 operating income as a percentage of sales (adjusted operating margin) of 11.6%
(previously 11.6% to 11.8%)
•Net interest expense of approximately $1.6 billion
•Effective income tax rate of approximately 24.5%
•Diluted earnings per share of approximately $11.75 (previously $11.75 to $12.25)
•Adjusted1 diluted earnings per share of approximately $12.25 (previously $12.25 to $12.75)
•Capital expenditures of up to $2.5 billion

A conference call to discuss second quarter 2026 operating results is scheduled for today, Wednesday, August 19, at 9 a.m. ET. The conference call will be available by webcast and can be accessed by visiting Lowe’s website at ir.lowes.com and clicking on Lowe’s Second Quarter 2026 Earnings Conference Call Webcast. Supplemental slides will be available prior to the start of the conference call. A replay of the call will be archived at ir.lowes.com.


Lowe’s Companies, Inc.

Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 100 home improvement company with total fiscal year 2025 sales of more than $86 billion. Lowe's employs approximately 300,000 associates and operates over 1,750 home improvement stores, 540 branches and 120 distribution centers. Lowe’s is a core value S&P 500 equity stock and a dividend aristocrat. Based in Mooresville, N.C., Lowe's supports the communities it serves through programs focused on creating safe, affordable housing, improving community spaces, helping to develop the next generation of skilled trade experts and providing disaster relief to communities in need. For more information, visit Lowes.com.












1 Adjusted diluted earnings per share is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures Reconciliation” section of this release for additional information, as well as reconciliations between the company’s GAAP and non-GAAP financial results.



Disclosure Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as “believe”, “expect”, “anticipate”, “plan”, “desire”, “project”, “estimate”, “intend”, “will”, “should”, “could”, “would”, “may”, “strategy”, “potential”, “opportunity”, “outlook”, “scenario”, “guidance”, and similar expressions are forward-looking statements. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives (including objectives related to environmental and social matters), business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services including customer acceptance of new offerings and initiatives, macroeconomic conditions and consumer spending, trade policy changes and additional tariffs and tariff refunds, share repurchases, and Lowe’s strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. Such statements involve risks and uncertainties, and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements.

A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe’s and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, age of housing stock, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, geopolitical or armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers.

Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in “Item 1A - Risk Factors” in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.

LOW-IR
    
###

Contacts:Investor Inquiries:Media Inquiries:
Shelly HubbardSteve Salazar
704-775-3856steve.j.salazar@lowes.com
shelly.hubbard@lowes.com






Lowe’s Companies, Inc.
Consolidated Statements of Current Earnings and Accumulated Deficit (Unaudited)
In Millions, Except Per Share and Percentage Data
Three Months EndedSix Months Ended
July 31, 2026August 1, 2025July 31, 2026August 1, 2025
Current EarningsAmount% SalesAmount% SalesAmount% SalesAmount% Sales
Net sales$25,956 100.00 $23,959 100.00 $49,034 100.00$44,888 100.00 
Cost of sales17,379 66.9615,858 66.1932,914 67.1329,800 66.39
Gross margin8,577 33.048,101 33.8116,120 32.8715,088 33.61
Expenses:
Selling, general and administrative4,456 17.174,175 17.428,879 18.108,222 18.31
Depreciation and amortization572 2.20457 1.911,138 2.32902 2.01
Operating income3,549 13.673,469 14.486,103 12.455,964 13.29
Interest – net374 1.44313 1.31773 1.58650 1.45
Pre-tax earnings3,175 12.233,156 13.175,330 10.875,314 11.84
Income tax provision776 2.99758 3.161,303 2.661,276 2.84
Net earnings$2,399 9.24$2,398 10.01$4,027 8.21$4,038 9.00
Weighted average common shares outstanding – basic
559 559 559 559 
Basic earnings per common share (1)
$4.28 $4.28 $7.18 $7.21 
Weighted average common shares outstanding – diluted
560 560 560 560 
Diluted earnings per common share (1)
$4.27 $4.27 $7.17 $7.19 
Cash dividends per share
$1.25 $1.20 $2.45 $2.35 
Accumulated Deficit
Balance at beginning of period$(9,884)$(13,833)$(10,839)$(14,799)
Net earnings2,399 2,398 4,027 4,038 
Cash dividends declared(702)(673)(1,375)(1,317)
Share repurchases— — — (30)
Balance at end of period$(8,187)$(12,108)$(8,187)$(12,108)
(1)    Under the two-class method, earnings per share is calculated using net earnings allocable to common shares, which is derived by reducing net earnings by the earnings allocable to participating securities. Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were $2,392 million and for the three months ended July 31, 2026, and $2,391 million for the three months ended August 1, 2025. Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were $4,016 million for the six months ended July 31, 2026, and $4,027 million for the six months ended August 1, 2025.

Lowe’s Companies, Inc.
Consolidated Statements of Comprehensive Income (Unaudited)
In Millions, Except Percentage Data
Three Months EndedSix Months Ended
July 31, 2026August 1, 2025July 31, 2026August 1, 2025
Amount% SalesAmount% SalesAmount% SalesAmount% Sales
Net earnings$2,399 9.24 $2,398 10.01 $4,027 8.21 $4,038 9.00 
Cash flow hedges – net of tax(3)(0.01)(4)(0.01)(7)(0.02)(7)(0.02)
Other(1)— (1)(0.01)(2)— — — 
Other comprehensive loss(4)(0.01)(5)(0.02)(9)(0.02)(7)(0.02)
Comprehensive income$2,395 9.23 $2,393 9.99 $4,018 8.19 $4,031 8.98 




Lowe’s Companies, Inc.
Consolidated Balance Sheets (Unaudited)
In Millions, Except Par Value Data
July 31, 2026August 1, 2025
Assets
Current assets:
Cash and cash equivalents$3,172 $4,860 
Short-term investments235 396 
Receivables - net1,238 320 
Merchandise inventory - net17,737 16,342 
Other current assets960 721 
Total current assets23,342 22,639 
Property, less accumulated depreciation18,276 17,708 
Operating lease right-of-use assets4,071 3,887 
Long-term investments179 273 
Deferred income taxes - net— 140 
Intangible assets - net5,709 976 
Goodwill3,957 691 
Other assets347 300 
Total assets$55,881 $46,614 
Liabilities and shareholders' deficit
Current liabilities:
Current maturities of long-term debt$2,352 $4,175 
Current operating lease liabilities733 536 
Accounts payable11,076 9,513 
Accrued compensation and employee benefits1,168 1,098 
Deferred revenue1,609 1,558 
Other current liabilities4,194 4,742 
Total current liabilities21,132 21,622 
Long-term debt, excluding current maturities35,204 30,548 
Noncurrent operating lease liabilities3,734 3,801 
Deferred income taxes - net1,201 — 
Deferred revenue - Lowe's protection plans1,253 1,283 
Other liabilities794 760 
Total liabilities63,318 58,014 
Shareholders' deficit:
Preferred stock, $5 par value: Authorized - 5.0 million shares; Issued and outstanding - none— — 
Common stock, $0.50 par value: Authorized - 5.6 billion shares; Issued and outstanding - 561 million and 561 million, respectively281 280 
Capital in excess of par value207 147 
Accumulated deficit(8,187)(12,108)
Accumulated other comprehensive income262 281 
Total shareholders' deficit(7,437)(11,400)
Total liabilities and shareholders' deficit$55,881 $46,614 




Lowe’s Companies, Inc.
Consolidated Statements of Cash Flows (Unaudited)
In Millions
Six Months Ended
July 31, 2026August 1, 2025
Cash flows from operating activities:
  Net earnings$4,027 $4,038 
  Adjustments to reconcile net earnings to net cash provided by operating activities:
     Depreciation and amortization1,292 1,022 
     Noncash lease expense338 267 
     Deferred income taxes165 70 
Loss on property and other assets - net15 30 
     Share-based payment expense132 117 
     Changes in operating assets and liabilities:
       Receivables - net(157)(22)
       Merchandise inventory – net(436)1,173 
       Other operating assets236 20 
       Accounts payable1,313 150 
       Other operating liabilities84 745 
     Net cash provided by operating activities7,009 7,610 
Cash flows from investing activities:
     Purchases of investments(808)(845)
     Proceeds from sale/maturity of investments1,079 827 
     Capital expenditures(1,063)(1,013)
     Proceeds from sale of property and other long-term assets8 7 
     Acquisition of business - net(5)(1,314)
     Other – net28 (5)
     Net cash used in investing activities(761)(2,343)
Cash flows from financing activities:
     Repayment of debt(2,397)(796)
Proceeds from issuance of common stock under share-based payment plans71 70 
     Cash dividend payments(1,346)(1,290)
     Repurchases of common stock(366)(113)
     Other – net(20)(39)
     Net cash used in financing activities(4,058)(2,168)
Net increase in cash and cash equivalents2,190 3,099 
Cash and cash equivalents, beginning of period982 1,761 
Cash and cash equivalents, end of period$3,172 $4,860 



Lowe’s Companies, Inc.
Non-GAAP Financial Measure Reconciliation (Unaudited)

To provide additional transparency, the Company has presented the non-GAAP financial measure of adjusted diluted earnings per share for the three months ended July 31, 2026 and August 1, 2025. This measure excludes the impact of certain items, further described below, to assist analysts and investors in understanding operational performance for the second quarter of fiscal 2026.
Fiscal 2026 Impacts
During fiscal 2026, the Company recognized financial impacts from the following:

•In the second quarter of fiscal 2026, the Company recognized pre-tax expenses of $96 million consisting of intangible asset amortization related to the acquisitions of Artisan Design Group and Foundation Building Materials (Acquisitions of businesses).

Fiscal 2025 Impacts
During fiscal 2025, the Company recognized financial impacts from the following:

•In the second quarter of fiscal 2025, the Company recognized pre-tax expenses of $43 million consisting of transaction costs, purchase accounting adjustments, and intangible asset amortization related to the acquisition of Artisan Design Group (Acquisitions of businesses).
In addition, the Company has presented full year fiscal 2026 guidance of the non-GAAP financial measures adjusted operating
margin and adjusted diluted earnings per share, which exclude the impact of intangible asset amortization, and related tax
effects if applicable, related to the acquisitions of Foundation Building Materials and Artisan Design Group. When evaluated
with our GAAP results, we believe these non-GAAP measures provide investors with meaningful measures of comparable
performance.

Adjusted operating margin and adjusted diluted earnings per share should not be considered an alternative to, or more
meaningful indicator of, the Company’s operating margin or diluted earnings per share as prepared in accordance with GAAP.
The Company’s methods of determining non-GAAP financial measures may differ from the method used by other companies
and may not be comparable.

A reconciliation between the Company’s GAAP and non-GAAP financial results is shown below and available on the Company’s website at ir.lowes.com.
Three Months Ended
July 31, 2026August 1, 2025
Adjusted Diluted Earnings Per SharePre-Tax Earnings
Tax 1
Net EarningsPre-Tax Earnings
Tax 1
Net Earnings
Diluted Earnings Per Share, As Reported$4.27 $4.27 
Acquisitions of businesses0.17 (0.04)0.13 0.08 (0.02)0.06 
Adjusted Diluted Earnings Per Share$4.40 $4.33 
1 Represents the corresponding tax benefit or expense specifically related to the item excluded from adjusted diluted earnings per share.

Our adjusted operating margin and adjusted diluted earnings per share guidance for fiscal 2026 excludes an expected 40 basis
points and $0.50 after tax impact, respectively, from intangible asset amortization.

1. Adjusted Gross Margin, Adjusted Operating Margin, and Adjusted Diluted EPS are non-GAAP financial measures. Refer to ir.lowes.com for a reconciliation of non-GAAP measures. GROSS MARGIN -77 basis points vs. LY -80 basis points vs. LY ADJ. GROSS MARGIN1 Marvin R. Ellison, Chairman & CEO “Sustained growth in Pro, Online and Home Services led to our fifth consecutive quarter of positive comp sales, despite pressure in discretionary DIY spending. While the near-term remains dynamic, our teams are executing at a high level, advancing our Total Home strategy and investing to drive growth and profitability.” Comparable Sales Summary COMP TRANSACTIONS COMP $107.85 AVERAGE TICKET ONLINE SALES GROWTH -2.1% +2.3% +15.7% Monthly Comp Sales Performance Comp Sales by Ticket Size MAY We returned $673 MILLION to our shareholders through dividends Financial Highlights $4.27 DILUTED EPS 0.0% vs. LY 13.7% OPERATING MARGIN -81 basis points vs. LY $4.40 ADJ. DILUTED EPS1 +1.6% vs. LY ADJ. DILUTED EPS 14.0% ADJ. OPERATING MARGIN1 -62 basis points vs. LY ADJ. OPERATING MARGIN JUNE JULY -0.4% +1.7% -1.2%-1.0% +0.3% +4.7% 2026 2025 Total Home Strategy Updates Product Category Performance Positive Comp Sales in 9 of 13 product categories 8 of 15 Regions Delivered positive comp sales growth 33.0% +0.2% COMP SALES Q2 2026 RESULTS LAWN & GARDEN LUMBER MILLWORK APPLIANCES ELECTRICAL KITCHENS & BATH PAINT ROUGH PLUMBING TOOLS & HARDWARE Positive Pro comp sales as we continue to enhance in-store and digital tools Double digit growth in Online sales driven by our enhanced user experience Expanding key assortments leveraging our square footage and advancing space productivity -1.4% -0.7% +2.7%>$500 $100-$500 <$100 Exhibit 99.2

 

Drive Pro penetration Accelerate online sales Expand home services Create a loyalty ecosystem Increase space productivity Total Home Strategy Solving problems and fulfilling dreams for the home

 

Q2 2026 Reconciliation of Non-GAAP Measures Management of Lowe's Companies, Inc. (the Company) uses certain non-GAAP financial measures to provide additional insight for analysts and investors in evaluating the Company's financial and operating performance. These non-GAAP financial measures should not be considered alternatives to, or more meaningful indicators of, the Company's financial measures as prepared in accordance with GAAP. The Company's methods of determining these non-GAAP financial measures may differ from the methods used by other companies and may not be comparable. The Company has provided the following non-GAAP financial measures to assist the user in comparing its operating performance for the three months ended July 31, 2026 and August 1, 2025: adjusted gross margin, adjusted operating margin, and adjusted diluted earnings per share. These measures exclude the impact of certain items, further described below. Fiscal 2026 Impacts During fiscal 2026, the Company recognized financial impacts from the following: • In the second quarter of fiscal 2026, the Company recognized pre-tax expenses of $96 million consisting of intangible asset amortization related to the acquisitions of Artisan Design Group and Foundation Building Materials (Acquisitions of businesses). Fiscal 2025 Impacts During fiscal 2025, the Company recognized financial impacts from the following: • In the second quarter of fiscal 2025, the Company recognized pre-tax expenses of $43 million consisting of transaction costs, purchase accounting adjustments, and intangible asset amortization related to the acquisition of Artisan Design Group (Acquisitions of businesses). The following provides a reconciliation of the Company's non-GAAP financial measures to the most directly comparable GAAP financial measures: Three Months Ended Adjusted Gross Margin (in millions, except percentage data) August 1, 2025 Gross Margin, As Reported $ 8,101 Acquisitions of businesses 7 Adjusted Gross Margin $ 8,108 Gross Margin, % of Sales 33.81 % Adjusted Gross Margin, % of Sales 33.84 % Three Months Ended Adjusted Operating Income (in millions, except percentage data) July 31, 2026 August 1, 2025 Operating Income, As Reported $ 3,549 $ 3,469 Acquisitions of businesses 96 43 Adjusted Operating Income $ 3,645 $ 3,512 Operating Margin, % of Sales 13.67 % 14.48 % Adjusted Operating Margin, % of Sales 14.04 % 14.66 %

 

Three Months Ended July 31, 2026 August 1, 2025 Adjusted Diluted Earnings Per Share Pre-Tax Earnings Tax 1 Net Earnings Pre-Tax Earnings Tax 1 Net Earnings Diluted Earnings Per Share, As Reported $ 4.27 $ 4.27 Acquisitions of businesses 0.17 (0.04) 0.13 0.08 (0.02) 0.06 Adjusted Diluted Earnings Per Share $ 4.40 $ 4.33 1 Represents the corresponding tax benefit or expense specifically related to the item excluded from adjusted diluted earnings per share.

 

Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as “believe”, “expect”, “anticipate”, “plan”, “desire”, “project”, “estimate”, “intend”, “will”, “should”, “could”, “would”, “may”, “strategy”, “potential”, “opportunity”, “outlook”, “scenario”, “guidance”, and similar expressions are forward-looking statements. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives (including objectives related to environmental and social matters), business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services including customer acceptance of new offerings and initiatives, macroeconomic conditions and consumer spending, trade policy changes and additional tariffs and tariff refunds, share repurchases, and Lowe’s strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. Such statements involve risks and uncertainties and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements. A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe’s and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, age of housing stock, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, geopolitical or armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers. Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in “Item 1A - Risk Factors” in our most recent Annual Report on Form 10-K and as may be updated from time to time in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward- looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.

 

Source: View Original Filing on SEC EDGAR

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