Lowe’s Shares Slide 4% As 2026 Outlook Disappoints Despite Q4 Beat

Font: Financial Modeling Prep  • Feb 25, 2026

Lowe’s (NYSE: LOW) issued softer-than-expected guidance for the current fiscal year, overshadowing stronger-than-anticipated fourth-quarter results and sending shares down more than 4% intra-day Wednesday.

Persistent pressure in the U.S. housing market, driven by elevated home prices and subdued hiring trends, has led to uneven demand conditions, even as interest and mortgage rates have begun to moderate. These dynamics have weighed on retailers such as Lowe’s that rely on home improvement and repair spending.

Chief Executive Officer Marvin Ellison stated that the housing environment “remains pressured,” emphasizing that the company would concentrate on controllable factors, including productivity initiatives.

For fiscal 2026, Lowe’s projected comparable sales growth ranging from flat to up 2%, compared with Bloomberg consensus expectations for a 2% increase. Adjusted diluted earnings per share were forecast at approximately $12.25 to $12.75, below analyst projections of $13.

In the quarter ended in January, adjusted earnings per share came in at $1.98, up from $1.93 a year earlier and ahead of consensus estimates of $1.94. Comparable sales increased 1.3%, exceeding expectations for 0.47% growth. Net sales rose 11% to $20.58 billion, topping forecasts of $20.35 billion.

The results followed peer Home Depot’s recent report of better-than-expected fourth-quarter same-store sales, though Home Depot executives also highlighted ongoing consumer caution and housing market headwinds.