Lowe's reports Q2 2026 results, updates full-year guidance

Lowe's Companies (NYSE: LOW ) held its second-quarter earnings conference call on Wednesday.

Below is the complete transcript from the call.

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View the webcast at Watch the full earnings call below: Summary Lowe's Companies reported an increase in sales with a focus on enhancing customer conversion through their AI tool, Milo, which significantly boosts online conversion rates.

The company is experiencing strong growth in its Pro and 'Do It For Me' segments, despite a cautious consumer environment affected by elevated fuel prices and economic uncertainty.

Management emphasized ongoing strategic investments in their Total Home strategy and Perpetual Productivity Improvement initiatives to drive future growth and maintain resilience in challenging conditions.

Lowe's Companies highlighted a disciplined approach to cost management, enabling them to achieve positive comparable sales across multiple merchandise divisions despite external pressures.

The company updated its full-year guidance, anticipating sales of approximately $92 billion, with adjusted operating margin projected at approximately 11.6% and adjusted diluted earnings per share of around $12.25.

Full Transcript A Experience, along with the compelling value offered by our loyalty programs are driving increased conversion and enabling us to respond to dynamic customer preferences.

And our online AI agent, Milo, continues to add value to digitally engaged customers as they ask the tool for help with home improvement projects, product specifications and solutions to fit their needs.

Since its inception, Milo, which also powers our Associate AI Companion Application, has supported over 25 million questions from customers and associates, demonstrating the strong adoption and resonance of the tool.

In fact, the conversion rate for online customers who use Milo is triple that of customers who do not use the tool, reinforcing that a well designed agency AI experience can be a clear driver in the purchasing decision.

Now to Home services, We delivered another quarter of growth as do it for me.

Customers continue to engage with the simpler and more convenient experience we've created, especially in replacement projects.

The enhancements have improved conversion cycle time and customer satisfaction, giving us confidence in our position to capture more of these larger projects when homeowners are ready to take them on.

Now let me transition to the macro environment.

While the long term fundamentals supporting home improvement remain intact, the near term environment continues to be dynamic.

Elevated fuel prices combined with broader economic uncertainty have influenced household budgets.

Customers continue to tell us that they're being cautious about their spending and prioritizing where and when they invest in their homes.

As a result, discretionary DIY demand remains under pressure.

Despite this, we continue to see solid performance from our pro customers and our do it for Me businesses, reflecting the success of of our Total Home strategy.

Given Lowe's customer mix, the pace and health of DIY demand remains an important driver of our overall performance.

While these external conditions remain uncertain, we remain committed to being a workplace of choice for our associates, providing our customers with a great shopping experience and advancing our strategic investments.

This approach has enabled us to deliver five consecutive quarters of positive comps, demonstrating the resilience of our strategy across chain economic conditions.

Equally important, our Perpetual Productivity Improvement initiatives, or ppi, continue to advance.

This disciplined expense control and focus on optimizing our resources gives us the flexibility to continue investing in our strategic priorities, positioning the company to outperform as market conditions improve Before I close, I'd like to thank our frontline associates for everything they do to serve our customers and every day.

Spending time in stores each week remains one of the most rewarding parts of my job, and every visit reinforces the passion, expertise and commitment that our associates bring to Lowes.

Their insights continue to help us improve the customer experience and their dedication remains one of our greatest competitive advantages.

And with that, I'LL turn the call over to Bill.

B Thanks Marvin and good morning everyone.

This quarter we delivered positive comp sales in nine of our 13 merchandise divisions, demonstrating continued strong execution, a commitment to value and disciplined approach to managing through the current challenging environment.

In building products, we generated broad based growth with positive comps in rough plumbing, millwork, electrical and lumber.

These results reflect our strategic investments in pro and ongoing strength in repair and maintenance projects.

Within rough plumbing, we drove sales in H Vac, water heaters and air circulation supported by trusted brands like A.O. smith and Sharkbite whose solutions make installation fast and simple.

We also delivered positive comps in lumber, specifically in treated lumber, siding and composite decking with leading brands like Trex, Timbertech and Deckorators.