As Lowe's Companies, Inc. (LOW Quick QuoteLOW - Free Report) prepares to unveil its first-quarter fiscal 2026 earnings on May 20, before the opening bell, investors are eager to see if the company can beat market expectations. 

The Zacks Consensus Estimate for revenues stands at $22.91 billion, implying 9.5% growth from the prior year. Meanwhile, the consensus mark for earnings has remained stable over the past 30 days at $2.96 per share and suggests a 1.4% increase from the year-ago period.

LOW has a trailing four-quarter earnings surprise of 2.1%, on average. In the last reported quarter, this Mooresville, NC-based company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 1.5%. 
 

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What the Zacks Model Says About LOW’s Q1 Earnings

As investors prepare for Lowe’s first-quarter results, the question looms regarding earnings beat or miss. Our proven model predicts that an earnings beat is likely for Lowe’s this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lowe’s has a Zacks Rank #3 and an Earnings ESP of +0.57%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
 

Lowe's Companies, Inc. Price, Consensus and EPS Surprise

Lowe's Companies, Inc. price-consensus-eps-surprise-chart | Lowe's Companies, Inc. Quote

Key Factors to Observe Ahead of LOW's Q1 Earnings

Lowe’s first-quarter performance is likely to have been supported by continued momentum in its Pro business, which has remained a key growth engine despite ongoing pressure in the broader home improvement market. Management highlighted strong engagement from small and mid-sized professional customers, supported by investments in inventory, job-site delivery capabilities and tailored digital tools. The company’s expanding Pro ecosystem, including the rollout of the Pro Extended Aisle and deeper partnerships with professional contractors, is likely to have helped drive planned spending and repeat purchases during the quarter. We expect comparable sales to improve 0.5% in the quarter under review.

The company’s omnichannel capabilities and home services business are also likely to have been meaningful contributors to Lowe’s first-quarter performance. The company has continued to enhance its online shopping experience through faster fulfillment options, same-day delivery and AI-enabled customer tools that simplify project planning and purchasing decisions. At the same time, demand for installation and repair services is likely to have remained resilient as homeowners continued to prioritize necessary maintenance and smaller-scale renovation work over large discretionary remodels. 

Lowe’s merchandising initiatives and operational discipline are also likely to have been supportive factors in the quarter. Management had expressed confidence in categories tied to repair, maintenance and seasonal demand, including paint, plumbing, hardware and outdoor living products. Lowe’s ongoing productivity initiatives may have helped offset cost pressures while improving store execution and inventory flow. The retailer also continued leveraging AI and automation tools to improve replenishment, labor productivity and merchandising efficiency, which may have enhanced customer experience and operating performance during the period. 

However, Lowe’s first-quarter performance is likely to have been tempered by continued softness in discretionary DIY spending against a challenging housing backdrop. Management has repeatedly pointed to elevated mortgage rates, weak housing turnover and cautious consumer behavior as ongoing pressures on larger home improvement projects. Big-ticket purchases remained under pressure as homeowners deferred major renovations and focused more on smaller essential projects. Persistent uncertainty around inflation and tariffs may have weighed on customer traffic and purchasing patterns.

LOW Stock Price Performance

Shares of Lowe’s have fallen 22.3% over the past three months compared with the industry’s decline of 22.5%.

Lowe’s has trailed The Home Depot, Inc. (HD Quick QuoteHD - Free Report) but outpaced Floor & Decor Holdings, Inc. (FND Quick QuoteFND - Free Report) . While shares of Home Depot have declined 21.6%, those of Floor & Decor have plunged 34.8%.
 

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Does LOW Present a Strong Case for Value Investing?

Lowe’s valuation remains discounted relative to the industry. The stock currently trades at a forward 12-month P/E multiple of 16.87, below the industry average of 18.05. LOW is also trading below its own 12-month median P/E of 18.73, suggesting that the stock remains attractively valued relative to the industry and its recent historical range.

Lowe’s is trading at a discount to Home Depot (with a forward 12-month P/E ratio of 19.45) and Floor & Decor (22.10). 
 

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Final Words on Lowe’s Stock

Lowe’s enters its first-quarter earnings release with encouraging momentum across its Pro business, digital initiatives and operational improvement efforts, even as the broader home improvement environment remains challenging. The company appears well-positioned to benefit from steady demand in repair and maintenance categories, while its productivity initiatives and omnichannel investments are likely to support long-term execution. Although pressure on discretionary DIY spending and macroeconomic uncertainty may weigh on results, Lowe’s favorable earnings setup and attractive valuation suggest that the stock remains worth watching ahead of the release.