Lowe's Companies, Inc. (LOW) AI Stock Analysis

Lowe's Companies, Inc. is a home improvement retailer serving homeowners, renters, and professional contractors. The company offers a wide inventory for construction, maintenance, repair, remodeling, and decorating, including appliances, outdoor living supplies, lumber, fixtures, tools, paint, plumbing, and electrical products. Lowe's sells both national brand names and private label products, and it provides installation services through independent contractors, along with extended protection plans and repair services. As of January 28, 2022, the company operated a network of 1,971 home improvement and hardware stores. In addition to physical stores, Lowe's serves customers through online platforms such as Lowes.com and Lowesforpros.com and mobile applications.

Lowe's reported revenue of $86.29B in FY2026, up 3.1% after declining 11.0% in FY2024 and 3.1% in FY2025. Gross margin was 33.5% in FY2026, while operating margin was 11.8%, compared to an operating margin of 12.5% in FY2025 and 13.4% in FY2024. Net income reached $6.65B in FY2026 with diluted earnings per share of $12.29, down from net income of $6.96B in FY2025 and $7.73B in FY2024. Over the 5-year period from FY2021 to FY2026, revenue recorded a compound annual growth rate of -0.8%. In the latest quarter ended July 31, 2026, quarterly revenue grew 8.3% year-over-year, bringing trailing twelve-month revenue to $90.43B and profit margin to 7.3%.

As of July 31, 2026, Lowe's held $3.41B in cash and short-term investments against $42.02B in total debt, resulting in net debt of $38.62B. The company recorded negative shareholders' equity of -$7.44B and a current ratio of 1.10. In FY2026, operating cash flow was $9.86B, supporting capital expenditures of $2.21B and delivering $7.65B in free cash flow. Lowe's returned capital to shareholders through $2.64B in dividends paid and $211.0M in share buybacks in FY2026, helping reduce its 5-year share count by 18.8%.

At $197.38 as of October 16, 2026, Lowe's has a market capitalization of $110.74B and an enterprise value of $147.80B. The stock trades at a trailing price-to-earnings ratio of 16.7x and a forward multiple of 15.6x, compared to medians of 20.1x and 15.7x for its S&P 500 Consumer Cyclical peers. Its enterprise value-to-EBITDA ratio of 11.5x and price-to-sales ratio of 1.2x also sit below peer medians of 13.8x and 2.0x. Over the past year, Lowe's returned -17.1%, trailing the S&P 500 return of 16.8%, while its 5-year return of -0.8% lagged the broader market return of 83.0%.

Lowe's pays an annual forward dividend of $5.00 per share, representing a 2.53% dividend yield and a payout ratio of 39.3%. The company has paid dividends for 42 consecutive years and generated a 5-year annualized dividend growth rate of 15.9%. Dividends are distributed on a quarterly frequency, with the last ex-dividend date on October 21, 2026.

Wall Street coverage includes 20 Strong Buy, 5 Buy, 9 Hold, and 1 Sell ratings, with 0 Strong Sell ratings. The mean price target is $252.42, which is 27.9% above the last close of $197.38. For the current fiscal year ending January 31, 2027, analysts project revenue of $92.14B and earnings per share of $12.31. For the following fiscal year, 32 analysts estimate revenue of $94.39B and earnings per share of $13.00. Lowe's has beaten earnings estimates in each of the last 4 quarters, and its next earnings date is November 18, 2026.

This page is an AI-written research summary of Lowe's Companies, Inc. (LOW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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