LOW · Q2 FY2027
LOWES COMPANIES INC Q2 FY2027 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $25.96B | $23.96B (yr ago) | Beat |
| EPS | $4.27 | $4.27 (yr ago) | Miss |
| Free Cash Flow | $3.12B | $3.74B (yr ago) | Miss |
| Gross Margin | 33.0% | 33.8% (yr ago) | Miss |
| Operating Margin | 13.7% | 14.5% (yr ago) | Miss |
What changed
Revenue increased 8.3% year over year to $25.96 billion, but diluted EPS remained unchanged at $4.27. Gross and operating margins each contracted by 80 basis points, while quarterly free cash flow declined 16.6% to $3.12 billion.
Impact on the investment thesis
Fair value remains $195 per share because stronger revenue did not translate into EPS growth or better cash conversion. The quarter reinforces rather than changes the thesis: Lowe’s is growing again, but the current price already reflects a reasonable normalization outcome.