Lowe's lowered its full-year 2026 revenue forecast to $92.0 billion and earnings per share forecast to approximately $11.75. This report examines investors' response and the company's future growth strategy.
Lowe's Companies revised its earnings forecast in August 2026 and indicated that it would maintain its full-year revenue forecast at $92.0 billion and EPS forecast at approximately $11.75. It explained that, against a backdrop of slowing demand, slower growth in the home-improvement market could affect its margins and comparable-store sales. At the same time, the expansion of its professional business and rollout of digital tools are expected to support operations despite the near-term weakening in spending conditions.
The revision was announced shortly after the company launched an AI-powered materials list for professional customers. The list is central to its growth strategy in the professional market, but additional efforts are currently considered necessary to generate results amid weak spending conditions and management's cautious stance. This suggests that investment decisions based on a long-term recovery in demand should be approached cautiously.
The company's analysis report estimates that revenue will reach approximately $100.1 billion and earnings approximately $810 million by 2029, requiring annual revenue growth of 4.2% and approximately $1.5 billion in additional earnings. Fair value was estimated at $258.19 relative to the current share price, implying approximately 19% upside.
Within the investment community, views differ on the current fair value of the shares, with estimates ranging from $230.66 to $258.19. The focus of the discussion is how weak home-improvement spending and cautious revenue expectations could affect long-term earnings growth.