Aug 19, 2026 earnings call — Total Home strategy drives Pro and online growth
Lowe's reported Q2 sales of $26 billion and updated full-year sales outlook to approximately $92 billion.
Revenue $26.0B (est $26.1B) · EPS $4.40 (est $4.22) · Next-quarter revenue outlook $92.0B
Key quotes
"So let me begin with Pro, where we delivered another quarter of growth."
"Since its inception, Mylow, which also powers our associate AI companion application has supported over 25 million questions from customers and associates, demonstrating the strong adoption and resonance of the tool."
"The impact of our perpetual productivity improvement effort is evident in our successful transition of all store and field associates to a new centralized communications portal that consolidates several previously separate channels into one efficient platform."
Analyst Q&A 8
competition and how Lowe's will respond
Q (Steven Forbes · Guggenheim): Analyst asked where competitive pressures showed up (regions, categories, channels) and what reactive or proactive plans Lowe's has for the back half.
A: Management said competitors were aggressive on price in seasonal categories and that Lowe's will focus on planned events (Labor Day), member offers, Pro categories, new product rollouts like Traeger and Daltile, and operational discipline to protect profitability.
"First of all, as we look at Q3, it's really around Labor Day, making sure we can have a successful Labor Day event." — William Boltz
promotions: temporary or permanent change?
Q (Katharine McShane · Goldman Sachs): Analyst asked what Lowe's is seeing so far in Q3 about promotions, how they will manage them, and whether this is a new normal.
A: Management said the heightened promo activity is transitory and likely tied to competitors using tariff refund dollars. They plan to stay disciplined, lean on member offers and loyalty, and use in-store and online initiatives to remain competitive without sacrificing profitability.
"We think it's the result of competitors having tariff refund dollars and looking for different ways to use those dollars to drive the top line." — Marvin Ellison (CEO·CHAIR)
regional differences and weather effects
Q (Christopher Horvers · JPMorgan): Analyst asked about regional performance differences and how weather dynamics affected July and the outlook.
A: Management said there is no material geographic difference other than weather impacts; weather (notably Memorial Day rain) was a main driver of the quarter and, on a 2-year basis, trends improved with July exiting at positive growth.
"And candidly, there is no material difference in geographies other than weather impacts." — Marvin Ellison (CEO·CHAIR)
second half outlook and capital priorities
Q (Simeon Gutman · Morgan Stanley): Analyst asked what changed in the second half outlook and whether the company will shift capital or investment between DIY and Pro given housing weakness.
A: Management said the outlook reflects first half results and continued pressures in residential construction; Q3 is expected to be flat and Q4 implied negative partly due to cycling last year's winter storm. They will keep investing for the long term, targeting areas that deliver best return while remaining disciplined.
"when we look at the outlook, first half results, second half, current DIY trends and pressures on residential construction, those are really the 2 things that we're projecting out into the second half" — Brandon Sink (CFO)
tariff refunds and what drove online growth
Q (Gregory Melich · Evercore): Analyst asked how much tariff benefit to expect and how online grew 16% and the split in transactions between Pro and DIY.
A: Management said they recorded a Q2 tariff refund of $80 million or $0.11 and are pursuing additional filings but have no estimate for the second half; online strength came from improved fulfillment, same-day/free delivery, Mylow (higher conversion), and the transaction decline was largely DIY and seasonal outdoor categories in the South.
"So as we highlighted, we recorded a tariff benefit in Q2, $80 million or $0.11." — Brandon Sink (CFO)
competitors' pricing and customer demand
Q (Brian Nagel · Oppenheimer): Analyst asked which competitors acted on refunds, whether Lowe's chose not to match and lost share, and whether the consumer is getting better or worse.
A: Management said multiple competitors used tariff refunds to take aggressive price actions and Lowe's chose not to match because it was not financially prudent; they view the core customer as economically healthy but cautious, with affordability concerns limiting big-ticket spend.
"We did not choose then to match some of those promotions because they were not in our financial plan nor did we think it was financially prudent to match them." — Marvin Ellison (CEO·CHAIR)
gross margin pressure and refunds reinvestment
Q (Seth Sigman · Barclays): Analyst asked how external cost pressures affected gross margin, what that implies for Q3 EPS, and whether future refunds would be reinvested or could drive upside to guidance.
A: Management said Q2 showed tariff refund benefit partly offset by fuel and transportation pressure, and they expect those supply-cost pressures to be more elevated across the second half. They reiterated intent to consider reinvesting future refunds in customer-facing actions and will provide more color on later calls.
"So that's mainly what's reflected in the second half that's kind of a newly emerged dynamic from the outlook that we had provided earlier in the year." — Brandon Sink (CFO)
Q4 drivers and long-term housing recovery
Q (Christopher Nardone · BofA): Analyst asked if any supply-chain or other drivers beyond FBM lapping are in the Q4 guide and whether a long frozen housing market increases long-term upside when it turns.
A: Management said supply chain fuel and transportation pressures are included in the second half outlook and one Q4 difference is cycling a discretionary bonus paid last year. They expect a gradual housing recovery and believe Lowe's long-term positioning and investments will benefit when the market improves.
"No. I think, Chris, I just mentioned the supply chain fuel transportation pressure is included and projected across the second half." — Brandon Sink (CFO)