Equity Profile

LOW

Lowe's Companies, Inc.

Consumer DiscretionaryHome Improvement Retail$116.5B

Aug19Wed

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

Lowe's Companies, Inc. is a leading home improvement retailer that provides a wide range of products and services for home renovation and repair....

Key Metrics to Watch

Same-Store Sales Growth

This metric indicates how well existing stores are performing and reflects consumer demand.

3.5%

Gross Margin

Gross margin is crucial for understanding profitability, especially in a competitive retail environment.

34.5%

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

LOW Q2-2026 Earnings Preview

Context

Company Snapshot

Lowe's Companies, Inc. is a leading home improvement retailer that provides a wide range of products and services for home renovation and repair. As a key player in the consumer discretionary sector, Lowe's benefits from trends in home improvement and consumer spending, particularly as homeowners continue to invest in their properties.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+2.72%

Avg Stock Reaction

-0.70%

Last Quarter Recap

In Q1-2026, Lowe's reported an earnings per share (EPS) of $3.03, beating estimates by 2.4%. The stock reacted positively, gaining 1.23% the following day.

Management Promises & Guidance

Focus on enhancing customer experience through improved in-store services.
Commitment to expanding online sales and digital capabilities.
Plans to optimize supply chain efficiency to reduce costs.

Expectations

Wall Street Expectations

Overall, analysts expect Lowe's to continue its positive trajectory, driven by strong consumer demand for home improvement products.

Bull Case

If Lowe's can exceed same-store sales growth expectations and maintain strong gross margins, it could signal robust consumer confidence and spending.

Bear Case

Conversely, if the company reports weaker-than-expected sales or rising operating expenses, it could raise concerns about its ability to navigate a challenging retail environment.

Key Metrics to Watch

Same-Store Sales Growth

3.5%

This metric indicates how well existing stores are performing and reflects consumer demand.

Gross Margin

34.5%

Gross margin is crucial for understanding profitability, especially in a competitive retail environment.

Operating Expenses

15.0%

Monitoring operating expenses helps assess cost management and efficiency, which can impact overall profitability.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected same-store sales growth for Q2-2026?

This figure will be crucial in assessing consumer demand and overall business health, especially in the current economic climate.

How are operating expenses trending compared to previous quarters?

Understanding cost management will be key to evaluating profitability and efficiency moving forward.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Lowe's ability to leverage its digital sales growth, which could significantly boost overall revenue despite potential headwinds in the retail sector.

Supporting Evidence

Lowe's has shown consistent EPS beats, indicating stronger operational performance than expected.

The options market is pricing a larger move than historical averages, suggesting heightened volatility that may not align with actual performance.

Management's focus on digital expansion could lead to better-than-expected sales, countering traditional retail challenges.

Key Risk

If same-store sales growth falls below 2%, it could challenge the bullish outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is closely watching Lowe's ability to maintain profitability while navigating rising costs and consumer demand fluctuations.

Bull Confirmed If

Same-store sales growth of 4% or better would confirm the bull case.

Bear Confirmed If

Any decline in gross margin below 34% would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±4.72%

Historical Avg

±2.6%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings announcement.

Options are pricing ±4.7% while LOW has averaged ±2.6% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.3%

30d HV

29.2%

Calls (412K)P/C Ratio: 0.83Puts (432K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Consumer Discretionary

n=30

Fade rate: 8 of 21 (38%)

This setup has occurred 30 times across Consumer Discretionary in the last 2 years. 13 of 21 (62%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 4.9%, with a raw directional average of +2.2% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Lowe's beats expectations, history suggests a potential stock increase of around 2.57% as confidence in growth prospects strengthens.

In-Line / Cautious

A cautious inline report could lead to muted reactions, as investors assess management's commentary on future outlook.

Miss

If Lowe's misses expectations, the stock could drop, with historical patterns indicating a potential decline of around 0.70%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on digital sales growth and its impact on overall revenue.
2Any changes in consumer spending patterns observed in recent months.
3Details on cost management strategies and their effectiveness.
4Insights into supply chain improvements and inventory management.
5Management's outlook on the home improvement market for the remainder of the year.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

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Company Snapshot

Lowe's Companies, Inc. is a leading home improvement retailer that provides a wide range of products and services for home renovation and repair....

Key Metrics to Watch

Same-Store Sales Growth

This metric indicates how well existing stores are performing and reflects consumer demand.

3.5%

Gross Margin

Gross margin is crucial for understanding profitability, especially in a competitive retail environment.

34.5%

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

LOW Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+2.72%

Avg Stock Reaction

-0.70%

Last Quarter Recap

In Q1-2026, Lowe's reported an earnings per share (EPS) of $3.03, beating estimates by 2.4%. The stock reacted positively, gaining 1.23% the following day.

Management Promises & Guidance

Focus on enhancing customer experience through improved in-store services.
Commitment to expanding online sales and digital capabilities.
Plans to optimize supply chain efficiency to reduce costs.

Expectations

Wall Street Expectations

Overall, analysts expect Lowe's to continue its positive trajectory, driven by strong consumer demand for home improvement products.

Bull Case

If Lowe's can exceed same-store sales growth expectations and maintain strong gross margins, it could signal robust consumer confidence and spending.

Bear Case

Conversely, if the company reports weaker-than-expected sales or rising operating expenses, it could raise concerns about its ability to navigate a challenging retail environment.

Key Metrics to Watch

Same-Store Sales Growth

3.5%

This metric indicates how well existing stores are performing and reflects consumer demand.

Gross Margin

34.5%

Gross margin is crucial for understanding profitability, especially in a competitive retail environment.

Operating Expenses

15.0%

Monitoring operating expenses helps assess cost management and efficiency, which can impact overall profitability.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected same-store sales growth for Q2-2026?

This figure will be crucial in assessing consumer demand and overall business health, especially in the current economic climate.

How are operating expenses trending compared to previous quarters?

Understanding cost management will be key to evaluating profitability and efficiency moving forward.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Lowe's ability to leverage its digital sales growth, which could significantly boost overall revenue despite potential headwinds in the retail sector.

Supporting Evidence

Lowe's has shown consistent EPS beats, indicating stronger operational performance than expected.

The options market is pricing a larger move than historical averages, suggesting heightened volatility that may not align with actual performance.

Management's focus on digital expansion could lead to better-than-expected sales, countering traditional retail challenges.

Key Risk

If same-store sales growth falls below 2%, it could challenge the bullish outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is closely watching Lowe's ability to maintain profitability while navigating rising costs and consumer demand fluctuations.

Bull Confirmed If

Same-store sales growth of 4% or better would confirm the bull case.

Bear Confirmed If

Any decline in gross margin below 34% would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±4.72%

Historical Avg

±2.6%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings announcement.

Options are pricing ±4.7% while LOW has averaged ±2.6% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.3%

30d HV

29.2%

Calls (412K)P/C Ratio: 0.83Puts (432K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Consumer Discretionary

n=30

Fade rate: 8 of 21 (38%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Lowe's beats expectations, history suggests a potential stock increase of around 2.57% as confidence in growth prospects strengthens.

In-Line / Cautious

A cautious inline report could lead to muted reactions, as investors assess management's commentary on future outlook.

Miss

If Lowe's misses expectations, the stock could drop, with historical patterns indicating a potential decline of around 0.70%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on digital sales growth and its impact on overall revenue.
2Any changes in consumer spending patterns observed in recent months.
3Details on cost management strategies and their effectiveness.
4Insights into supply chain improvements and inventory management.
5Management's outlook on the home improvement market for the remainder of the year.