Total Revenue

2% decline (from $21,364M in Q1 2025 to $20,930M in Q1 2026)

The decline is driven by modest decreases across key business segments, including Home Décor, Building Products, and Hardlines, which reflects a continuation of consumer caution and macroeconomic pressures observed in previous periods. " " These challenges, such as reduced discretionary spending, have dampened overall revenue growth.

Home Décor, Building Products, and Hardlines

Modest declines (approximately 1–3%)

Each of the key segments saw slight dips in sales, aligned with the overall softening in market demand seen before. This trend is likely a result of ongoing shifts in consumer spending focus and market uncertainties that have characterized previous FY periods, suggesting that while changes are incremental, they are indicative of broader economic challenges. "

Net Cash Provided by Operating Activities

21% decline (from $4,262M in Q1 2025 to $3,379M in Q1 2026)

The significant drop is due to lower net earnings (down from $1,755M to $1,641M) combined with less favorable working capital adjustments. In Q1 2026, the smaller reduction in merchandise inventory (a decrease of $926M, compared to $1,330M in Q1 2025) and a smaller increase in accounts payable ($1,945M versus $3,033M) led to reduced cash inflows from operations, echoing trends identified in earlier periods. " "

Total Assets

Essentially unchanged ($45,372M in Q1 2026 vs. $45,365M in Q1 2025)

Stability in total assets is a result of offsetting asset changes, where increases in cash and inventory and short-term investments were balanced by declines in other current assets. This balance indicates that despite revenue and operating cash flow challenges, the company’s overall asset base remains robust compared to previous periods. " "

Sales

FY 2025

$83.5 to $84.5 billion "

$83.5 to $84.5 billion "

no change

Comparable Sales

FY 2025

Flat to up 1% "

Flat to up 1% "

no change

Operating Margin

FY 2025

12.3% to 12.4% "

12.3% to 12.4% "

no change

Diluted EPS

FY 2025

$12.15 to $12.40 "

$12.15 to $12.40 "

no change

Capital Expenditures

FY 2025

$2.5 billion "

$2.5 billion "

no change

Pro Segment Performance

In Q2 2025, Lowe’s reported mid‐single‑digit growth supported by strategic initiatives. " " " In Q4 2025, high single‑digit comps were noted along with broad Pro category strengths and investments. " " " "

In Q1 2026, executives reiterated mid‑single‑digit growth despite some weather disruptions, emphasizing sustained momentum and confidence in their Pro strategy. " "

Consistent focus, with the narrative evolving to address short‑term weather impacts while reaffirming a solid Pro strategy.

Pro Loyalty Initiatives

Q2 2025 mentioned the launch of a loyalty program that deepened customer engagement. " In Q4 2025, the redesigned MyLowe's Pro Rewards was highlighted as a key driver of engagement. " "

Q1 2026 continued to emphasize the improved loyalty program with additional features (e.g., Spanish option, phone number at checkout) to drive repeat purchases. "

Steady improvement in program design and rollout, with increasing emphasis on customer experience and ease of use.

Technology and Operational Efficiency

In Q2 2025, investments included partnerships with Apple, NVIDIA, OpenAI and RDC transitions to flow‑through models. " " " " " In Q4 2025, digital enhancements (AI, mobile app improvements) and expedited freight flow initiatives were underscored. " "

In Q1 2026, the focus expanded further with the launch of an online product marketplace, AI-powered tools for associates and customers, and robust inventory management improvements. " " " " " "

Ongoing emphasis on leveraging technology with a clear momentum toward scalable, AI-powered solutions and improved operational efficiency.

Tariff Impacts and Margin Pressure

Q4 2025 discussed how tariffs were managed within guidance and margin pressures were mitigated via productivity improvements. " " " Q2 2025 did not address tariffs specifically.

Q1 2026 provided detailed discussion on managing tariff impacts with best-in-class pricing tools and a portfolio approach, along with expectations for flat gross margins and timing impacts on margins. " " "

Increased depth and clarity in addressing tariff challenges, indicating a shift toward more proactive and granular mitigation measures.

Global Sourcing Diversification Strategy

Neither Q2 2025 nor Q4 2025 mentioned this topic.

Q1 2026 featured an in‑depth look at the shift in sourcing mix (60% US, 20% China) and detailed initiatives to reduce dependency on China via a SKU‑by‑SKU evaluation approach. " " "

New topic emerging in the current period, reflecting a more focused and transparent global sourcing strategy.

DIY Big-ticket Discretionary Demand

Q2 2025 noted softness driven by elevated rates and inflation, with significant impacts on large discretionary items. " " " " Q4 2025 highlighted continued challenges in DIY big-ticket categories such as kitchen and bath remodels. "

Q1 2026 continued the discussion on pressure in larger discretionary categories, with added commentary on elevated mortgage rates (7%) and customer delays in major purchases. " " " "

Consistent negative sentiment with persistent headwinds; the rhetoric has shifted slightly to emphasize macroeconomic factors without signs of recovery.

Competitive Pressures from Traditional and E‑Commerce Players

Q2 2025 discussed innovative measures (gig network, partnerships with delivery platforms) to address rural competition. " Q4 2025 provided limited commentary on competitive pressures.

Q1 2026 offered detailed insights, underlining both traditional and e‑commerce competition, with specific mention of rural market challenges and the use of technology and service strengths to counter them. "

Increased focus on competitive dynamics, especially in rural areas, with a stronger narrative on leveraging technology and customer service as differentiators.

Appliances Category Performance and Next-Day Delivery Innovation

Q2 2025 illustrated above‑average comps and a best‑in‑class fulfillment solution including next‑day/2‑day delivery. " Q4 2025 underscored unit growth, next‑day delivery model, and market share gains in appliances. " "

Q1 2026 reinforced strong performance in appliances with continued new product innovations (e.g., advanced washer/dryer) and reiterated leadership in delivering big, bulky products next day across almost every ZIP code. " " "

Consistent, positive performance that is reinforced quarter‑over‑quarter by innovation in product offering and delivery logistics.

Total Home Strategy for Market Share Growth

Q2 2025 highlighted the strategy’s role in driving Pro and online sales growth and readiness for market recovery. " " " Q4 2025 emphasized initiatives including enhanced Pro engagement, online acceleration, and a loyalty ecosystem. " " " " " "

Q1 2026 expanded on the strategy with additional elements such as the acquisition of ADG for new home construction market entry and further investments in technology and product assortment. " " " " "

Evolving strategy with consistent emphasis; the current period shows an expansion into new market segments (new construction) and deeper integration of digital and physical channels.

Loss of Hurricane-related Demand Impact

Q4 2025 noted a 100‑basis‑point benefit from hurricane-related demand with expectations to lap prior year gains, causing a slight drag in 2025. " " " Q2 2025 did not address a loss of hurricane demand but mentioned disaster relief efforts. "

Q1 2026 discussed a conversion of hurricane impacts from the previous period (50 basis points benefit turning over) and anticipated offsets in later quarters (around 100 basis points in Q3 and Q4). " "

Transitioning narrative: what was previously a clear benefit in Q4 is now being managed as an offset in Q1, suggesting a normalization of seasonal impacts.

Negative Comparable Sales Trend and Potential Deleveraging Risk

Q2 2025 acknowledged the third consecutive negative comp year with a set margin algorithm (15 bp contraction per comp point). " Q4 2025 detailed declines in DIY discretionary sales and expected sales deleverage, while also noting some sequential improvements. " " "

Q1 2026 reported a 1.7% decline in comparable sales with significant month‑to‑month variation and noted SG&A and operating margin pressures, reinforcing concerns over deleveraging. " " "

Persisting challenge: Negative comps and margin risks continue across periods, with Q1 2026 reflecting a clear articulation of the trade-offs between lower sales volumes and fixed cost pressures.