Lowe’s reported first quarter fiscal 2026 results for the period ending May 1, 2026, delivering solid top-line growth and its fourth consecutive quarter of positive comparable sales. Despite CEO Marvin Ellison describing the housing market as the most challenging since the financial crisis, Lowe’s beat expectations on both the top and bottom lines and reaffirmed its full-year guidance. The results signal that disciplined execution and strategic investment are driving results, not macro tailwinds.
Inside the Results
- Total sales: $23.1B vs. $20.9B in the prior-year quarter, up 10.3% year over year
- Comparable sales: up 0.6%
- Net earnings: $1.6B
- Diluted EPS: $2.90 vs. $2.92 last year
- Adjusted diluted EPS: $3.03, up 3.8% year over year (excludes $96M pre-tax acquisition-related expenses for FBM and ADG)
- Online sales growth: up 15.5%
- Gross margin: 32.7% (down 70 bps, largely due to acquisition dilution from FBM and ADG)
- Operating margin: 11.1%; adjusted operating margin: 11.5% (down 43 bps)
- Free cash flow: $2.8B
- Store count: 1,759 stores representing 196.0 million square feet of retail selling space
What Drove the Quarter
Lowe’s characterized the quarter as a strong spring execution story, with several themes shaping results.
SpringFest drove an early-season surge. After a slow February with comps down 1.4%, March rebounded sharply to plus 2.1% and April held steady at plus 0.5%. Lowe’s third annual SpringFest event generated positive comps across all three geographic divisions and all hardlines merchandise divisions. Targeted promotions, MyLowe’s Rewards member deals and free same-day delivery on items like mulch resonated with customers. Live goods, landscape products, hardscapes, patio furniture and riding mowers all stood out.
Online momentum is accelerating, not leveling off. Online sales surged 15.5% in the quarter, marking four consecutive quarters of positive comp growth in the digital channel. Improvements in user experience, same-day delivery for loyalty members and the rollout of Mylow are all contributing. Mylow is Lowe’s AI-powered shopping assistant built on OpenAI’s platform and now handles over one million customer inquiries per month. According to Ellison, it converts at triple the rate of customers who do not use the tool.
Pro, Appliances and Home Services carried the comp. Lowe’s highlighted continued strength in Pro sales, appliances and home services as the primary drivers of comparable sales growth. The DIY customer remains under pressure from a challenging housing macro and broader economic uncertainty, but Pro demand continues to provide a consistent and growing base of business.
Acquisitions are expanding the Pro ecosystem structurally. The $96M in acquisition-related expenses recognized in Q1 reflect the ongoing integration of Foundation Building Materials and Artisan Design Group, which together added roughly $2B to total revenue in the quarter. These are not short-term moves. They represent Lowe’s deliberate expansion into the professional contractor supply chain across building materials and interior finishes.
Traffic is still soft, but ticket is growing. The familiar pattern of selective shoppers continues. Comparable transactions are under pressure while average ticket is rising, reflecting consumers who are making fewer but more purposeful trips. Brands that help shoppers complete projects efficiently with clear bundling, companion item suggestions and project-focused content are best positioned to grow basket size even in a softer traffic environment.
Outlook and Implications for Suppliers and Brands
For home improvement brands and suppliers, the Q1 results and reaffirmed guidance point to three clear priorities heading into the back half of 2026.
- The digital shelf is where growth is being won: Four consecutive quarters of double-digit online comp growth at Lowe’s is not a trend to watch. It is the current reality. Brands that have not recently audited PDP content, refreshed imagery or tightened copy are losing ground in the fastest-growing channel. With Mylow now influencing over a million customer interactions per month, clean product data and clear content matter more than ever as AI surfaces and recommends products.
- Pro investment is a long-term platform, not a short-term push: Foundation Building Materials, Artisan Design Group and the ongoing buildout of Pro-focused services signal that Lowe’s Pro strategy is structural. Suppliers in tools, building materials, fasteners, interior finishes and HVAC should be sharpening Pro-specific value propositions, bulk configurations and jobsite-ready messaging now. Waiting for the housing market to recover before prioritizing Pro means leaving growth on the table.
- Win the basket, not just the shelf: With transactions down and ticket up, shoppers are on a mission when they visit Lowe’s. Brands that present clear project solutions with bundles, kits and compatible product suggestions are better positioned to grow units per transaction even when traffic stays pressured. Every touchpoint from packaging to PDP to in-aisle merchandising should help shoppers take the next step confidently.
Porchlight’s Perspective
At Porchlight, we read Lowe’s Q1 results as a reminder that execution is the differentiator in this market. The macro is not getting easier and Ellison called it the toughest housing environment since the financial crisis. But Lowe’s is still posting positive comps, growing online at 15.5% and building a Pro ecosystem that will compound over time. For brands, the opportunity is real but it requires showing up with sharper digital content, stronger Pro relevance and merchandising that makes project decisions easier. The brands doing that work now will be the ones growing with Lowe’s when the housing market eventually turns.
Additional Resources
Lowe’s Q1 2026 Earnings Press Release