What Does The Market Want From Lowe’s Stock?

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Lowe’s (LOW) stock lost 17.2% over the past year, while the S&P 500 returned 16.5%. You probably think of Lowe’s as a store for do-it-yourself homeowners, and management says those shoppers are holding back. But management also says two acquisitions position Lowe’s to win more business from larger professional contractors, its Pro customers. Buyers at today’s price may be betting on that. So is Lowe’s Pro business still growing while homeowners hold back?

Lowe’s Pro Business Is Still Growing

Yes, so far: Management said Pro delivered another quarter of growth in the quarter ended July 31, 2026. Lowe’s posted $26 billion in total sales for the quarter, up 8.3% from a year earlier.

Pro did not grow alone. Management said Online and Home Services, which serves customers who want the job done for them, joined Pro in helping offset softer do-it-yourself spending. Online sales grew 15.7%.

Lowe’s has also put money behind Pro. Management says FBM and ADG, two acquired businesses that sell into residential construction, position the company to grow its share with larger Pro customers over the long term.

Is Lowe’s Earning More As Its Sales Grow?

Not yet. Lowe’s earned $2.4 billion in the quarter ended July 31, 2026. That matched its earnings from a year earlier on $2.0 billion more in sales.

Its operating margin slipped to 13.7% from 14.5% a year earlier. Management said gross margin was 80 basis points below the prior year’s adjusted figure. That drop included the dilutive impact of the FBM and ADG acquisitions, which suggests the businesses Lowe’s bought to reach Pro customers earn thinner margins than the rest of the company.

Where Could Lowe’s Pro Push Fall Short?

Lowe’s existing business is barely growing, and the businesses it bought sell into a weak market for new homes. Comparable sales rose just 0.2% in the quarter ended July 31, 2026, far below the rise in total sales. Comparable transactions fell 2.1%. Management attributed that decline to pressure in weather-sensitive outdoor and seasonal categories.

Management also expects continued pressure on FBM and ADG from new home construction, a market it describes as softer for longer. If Pro growth stalls, Lowe’s is left depending on do-it-yourself demand. Management calls that demand an important driver of its overall performance and says it remains under pressure.

If profit does not follow the sales, those extra sales do little for shareholders. For now, management expects adjusted earnings per share in the third quarter to be about 7% below a year earlier.

So far, Lowe’s sales to Pro customers are still growing while homeowners hold back, but the company’s profit has not grown with its sales. Lowe’s operating margin is the number to watch when the company reports in November 2026. In the quarter ended October 31, 2025, that margin was 11.9%.

Does This Mean You Should Act On LOW?

Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

There is a smarter approach. Since its inception, the Trefis High Quality (HQ) Portfolio has returned 105%, beating the benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If that is how you want to invest, the HQ Portfolio is the place to start.

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