LOWE’S REPORTS SECOND QUARTER 2026 SALES AND EARNINGS RESULTS
– Lowe’s Companies, Inc. (NYSE: LOW) today reporte d 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 quarte r 2026 adju sted diluted EPS 1 increased 1.6% to $4.40 compared to the prior-year adjusted diluted EPS. Both diluted EPS and adjusted diluted EPS 1 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.
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.
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.
• 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%)
• Adjusted 1 operating income as a percentage of sales (adjusted operating margin) of 11.6% (previously 11.6% to 11.8%)
• Diluted earnings per share of approximately $11.75 (previously $11.75 to $12.25)
• Adjusted 1 diluted earnings per share of approximately $12.25 (previously $12.25 to $12.75)
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. (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.
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.
Contacts: Investor Inquiries: Media Inquiries: Shelly Hubbard Steve Salazar 704-775-3856 steve.j.salazar@lowes.com shelly.hubbard@lowes.com
(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.
July 31, 2026 August 1, 2025 ────────────────────────────────────────────────────────────────────────────── Assets Current assets: Cash and cash equivalents $ 3,172 $ 4,860 Short-term investments 235 396 Receivables - net 1,238 320 Merchandise inventory - net 17,737 16,342 Other current assets 960 721 Total current assets 23,342 22,639 Property, less accumulated 18,276 17,708 depreciation Operating lease right-of-use assets 4,071 3,887 Long-term investments 179 273 Deferred income taxes - net — 140 Intangible assets - net 5,709 976 Goodwill 3,957 691 Other assets 347 300 Total assets $ 55,881 $ 46,614 Liabilities and shareholders' deficit Current liabilities: Current maturities of long-term $ 2,352 $ 4,175 debt Current operating lease liabilities 733 536 Accounts payable 11,076 9,513 Accrued compensation and employee 1,168 1,098 benefits Deferred revenue 1,609 1,558 Other current liabilities 4,194 4,742 Total current liabilities 21,132 21,622 Long-term debt, excluding current 35,204 30,548 maturities Noncurrent operating lease 3,734 3,801 liabilities Deferred income taxes - net 1,201 — Deferred revenue - Lowe's protection 1,253 1,283 plans Other liabilities 794 760 Total liabilities 63,318 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 281 280 and outstanding - 561 million and 561 million, respectively Capital in excess of par value 207 147 Accumulated deficit -8,187 -12,108 Accumulated other comprehensive 262 281 income Total shareholders' deficit -7,437 -11,400 Total liabilities and shareholders' $ 55,881 $ 46,614 deficit
Six Months Ended July 31, 2026 August 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 1,292 1,022 amortization Noncash lease 338 267 expense Deferred income 165 70 taxes Loss on property and 15 30 other assets - net Share-based payment 132 117 expense Changes in operating assets and liabilities: Receivables - net -157 -22 Merchandise -436 1,173 inventory – net Other operating 236 20 assets Accounts payable 1,313 150 Other operating 84 745 liabilities Net cash provided by operating 7,009 7,610 activities Cash flows from investing activities: Purchases of -808 -845 investments Proceeds from sale/maturity of 1,079 827 investments Capital expenditures -1,063 -1,013 Proceeds from sale of property and 8 7 other long-term assets Acquisition of -5 -1,314 business - net Other – net 28 -5 Net cash used in -761 -2,343 investing activities Cash flows from financing activities: Repayment of debt -2,397 -796 Proceeds from issuance of common stock 71 70 under share-based payment plans Cash dividend -1,346 -1,290 payments Repurchases of -366 -113 common stock Other – net -20 -39 Net cash used in -4,058 -2,168 financing activities Net increase in cash and cash 2,190 3,099 equivalents Cash and cash equivalents, 982 1,761 beginning of period Cash and cash equivalents, end of $ 3,172 $ 4,860 period
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.
During fiscal 2026, the Company recognized financial impacts from the following:
• In the second quarter of fiscal 2026, the Company recognized pre-tax expenses o f $96 million consisting of intangible asset amortization related to the acquisitions of Artisan Design Group and Foundation Building Materials (Acquisitions of businesses).
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
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
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.
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.
Full text with the tables
Exhibit 99.1
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 EPS
1
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 reporte d 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
quarte r 2026 adju sted diluted EPS 1 increased 1.6% to $4.40 compared to the
prior-year adjusted diluted EPS. Both diluted EPS and adjusted diluted EPS 1
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%)
• Adjusted 1 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)
• Adjusted 1 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 Hubbard Steve Salazar
704-775-3856 steve.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
… … … … … …
… … … … … …
… … … … … …
──────────────────────────────────────────────────────────────────────────────
… % … % … % … %
… … … …
$ … … $ … … $ … … $ … …
… … … … … … … 6…
… … … … … … … 3…
… … … … … … … 1…
… … … … … … … 2…
… … … … … … … 1…
… … … … … … … 1…
… … … … … … … 1…
… … … … … … … 2…
$ … … $ … … $ … … $ … 9…
… … … …
$ … $ … $ … $ …
… … … …
$ … $ … $ … $ …
$ … $ … $ … $ …
$ … $ … $ … $ …
… … … …
… … … …
— — — …
$ … $ … $ … $ …
(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
T… J… A… … J… A…
M… 3… 1, … 3… 1,
E… 2… 2… … 2… 2…
──────────────────────────────────────────────────────────────────────────────
A… % A… % … % … %
S… … … …
… $ 2… 9… $ 2… 1… $ 4… 8… $ 4… 9…
…
…
…
…
– -3 -… -4 -… -7 -… -7 -…
…
…
…
… -1 — -1 -… -2 — — —
…
… -4 -… -5 -… -9 -… -7 -…
…
… $ 2… 9… $ 2… 9… $ 4… 8… $ 4… 8…
…
Lowe’s Companies, Inc.
Consolidated Balance Sheets (Unaudited)
In Millions, Except Par Value Data
July 31, 2026 August 1, 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Current assets:
Cash and cash equivalents $ 3,172 $ 4,860
Short-term investments 235 396
Receivables - net 1,238 320
Merchandise inventory - net 17,737 16,342
Other current assets 960 721
Total current assets 23,342 22,639
Property, less accumulated 18,276 17,708
depreciation
Operating lease right-of-use assets 4,071 3,887
Long-term investments 179 273
Deferred income taxes - net — 140
Intangible assets - net 5,709 976
Goodwill 3,957 691
Other assets 347 300
Total assets $ 55,881 $ 46,614
Liabilities and shareholders'
deficit
Current liabilities:
Current maturities of long-term $ 2,352 $ 4,175
debt
Current operating lease liabilities 733 536
Accounts payable 11,076 9,513
Accrued compensation and employee 1,168 1,098
benefits
Deferred revenue 1,609 1,558
Other current liabilities 4,194 4,742
Total current liabilities 21,132 21,622
Long-term debt, excluding current 35,204 30,548
maturities
Noncurrent operating lease 3,734 3,801
liabilities
Deferred income taxes - net 1,201 —
Deferred revenue - Lowe's
protection 1,253 1,283
plans
Other liabilities 794 760
Total liabilities 63,318 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 281 280
and outstanding - 561 million and
561
million, respectively
Capital in excess of par value 207 147
Accumulated deficit -8,187 -12,108
Accumulated other comprehensive 262 281
income
Total shareholders' deficit -7,437 -11,400
Total liabilities and shareholders' $ 55,881 $ 46,614
deficit
Lowe’s Companies, Inc.
Consolidated Statements of Cash Flows (Unaudited)
In Millions
Six Months Ended July 31, 2026 August 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 1,292 1,022
amortization
Noncash lease 338 267
expense
Deferred income 165 70
taxes
Loss on property and 15 30
other assets - net
Share-based payment 132 117
expense
Changes in operating
assets and
liabilities:
Receivables - net -157 -22
Merchandise -436 1,173
inventory – net
Other operating 236 20
assets
Accounts payable 1,313 150
Other operating 84 745
liabilities
Net cash provided by
operating 7,009 7,610
activities
Cash flows from
investing
activities:
Purchases of -808 -845
investments
Proceeds from
sale/maturity of 1,079 827
investments
Capital expenditures -1,063 -1,013
Proceeds from sale
of property and 8 7
other
long-term assets
Acquisition of -5 -1,314
business - net
Other – net 28 -5
Net cash used in -761 -2,343
investing activities
Cash flows from
financing
activities:
Repayment of debt -2,397 -796
Proceeds from
issuance of common
stock 71 70
under share-based
payment plans
Cash dividend -1,346 -1,290
payments
Repurchases of -366 -113
common stock
Other – net -20 -39
Net cash used in -4,058 -2,168
financing activities
Net increase in cash
and cash 2,190 3,099
equivalents
Cash and cash
equivalents, 982 1,761
beginning of
period
Cash and cash
equivalents, end of $ 3,172 $ 4,860
period
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
o f $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.
Th… Ju… Au…
Mo… 31, 1,
En… 20… 20…
──────────────────────────────────────────────────────────────────────────────
A…
D… Pr… Net Pr… Net
E… Ea… Ta… Ea… Ea… Tax1 Ear…
P…
S…
D…
E…
P… $ 4.… $ 4.…
S…
As
R…
A…
of 0.… -0… 0.… 0.… -0… 0.…
b…
A…
D…
E… $ 4.… $ 4.…
P…
S…
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.