Lowe's Companies (LOW) reported sales of $26 billion in fiscal Q2 2026, an 8.3% increase from the prior year, with almost all of that growth driven by acquisitions rather than its existing store base. Comparable sales, which exclude businesses too new to compare, rose just 0.2% for the quarter. This divergence highlights a strategic shift where new revenue streams are masking stagnation in the company's core operations.
Over the twelve months to September 30, 2026, Lowe's stock fell 26%, while the S&P 500 returned 14%. The underperformance coincides with management's pivot toward serving larger professional contractors. Between early 2025 and August 2026, the company added two acquisitions to its portfolio: Foundation Building Materials (FBM) and Artisan Design Group (ADG). ADG serves exclusively residential construction, while FBM derives approximately 45% of its business from residential projects and the remainder from commercial construction. Management stated on the fiscal Q2 2026 call that these deals position Lowe's to win more business from larger Pros over the long term.
| Metric | Fiscal Q2 2026 Value | Change from Year Earlier |
|---|---|---|
| Total Sales | $26 billion | +8.3% |
| Comparable Sales | N/A | +0.2% |
| Comparable Average Purchase | N/A | +2.3% |
| Comparable Purchases | N/A | -2.1% |
The modest 0.2% rise in comparable sales reflects mixed underlying trends. Management attributed a 2.3% increase in comparable average purchase to mild price inflation and strength in the Pro segment. However, the number of comparable purchases fell by 2.1%, a decline driven by pressure on weather-sensitive outdoor and seasonal categories. Additionally, management noted that demand from do-it-yourself shoppers for optional projects remains weak.
Despite the acquisition-driven growth, near-term pressures persist. Management warned that softer-for-longer new home construction is creating heightened pressure on demand, describing the building market as really difficult. Consequently, Lowe's moved its full-year outlook to the bottom end of its previous range, now projecting sales of about $92 billion for the fiscal year. The company expects comparable sales to be roughly flat over this period.
Investors may find some comfort in valuation metrics. As of September 30, 2026, Lowe's shares traded at 15.5 times the company's profit per share over the past year, compared to a multiple of 21.7 for the S&P 500. Management also indicated that core Pro customers report steady backlogs, although project sizes are shrinking.
The next key indicator will be fiscal Q3 2026 results, where management expects comparable sales to match the flat full-year outlook. A rise above flat would suggest recovery in the existing business base, while a decline would indicate that growth remains dependent on non-comparable acquisitions.