Lowe's Eyes Q3 Earnings Beat as Brokerages Lift Targets

Lowe's Companies, Inc. is preparing to report its third-quarter fiscal 2026 financial results before the market opens on Nov. 18, followed by an earnings conference call at 9 a.m. Eastern time. The Zacks Consensus Estimate projects quarterly revenue to rise 7.5% year over year to $22.38 billion. Meanwhile, the consensus forecast for earnings per share stands at $2.86, pointing to a 6.5% decline from the previous year. Zacks reported that its predictive model indicates an earnings beat is likely, pointing to a Zacks Rank #3 and an Earnings ESP of +0.59%.

The upcoming report follows second-quarter earnings where the home improvement retailer delivered $4.40 per share, topping estimates of $4.22 by $0.18. Quarterly revenue expanded 8.3% year over year to $25.96 billion, though it missed consensus projections of $26.13 billion. Lowe's has maintained its full-year fiscal 2026 earnings guidance at 12.250-12.250 per share, matching average analyst forecasts.

Wall Street brokerages have updated their outlooks ahead of the announcement. Analysts at Sanford C. Bernstein raised their target on the stock to $270.00 from $254.00 while maintaining an outperform rating. JPMorgan Chase & Co. similarly boosted its price target to $275.00 from $252.00, reiterating an overweight stance. MarketBeat data shows an overall consensus rating of Moderate Buy among analysts, with an average price target of $254.74.

Business performance during the quarter is expected to reflect sustained traction in professional contractor demand alongside the integration of Foundation Building Materials and Artisan Design Group. Digital investments, including the AI-driven MyLow assistant and the MyLowe's Pro Rewards program, have aimed to bolster customer retention. However, retail conditions remain constrained by high interest rates, inflation, subdued residential construction, and weak housing turnover, which continue to dampen larger renovations and discretionary consumer spending.

Institutional ownership in the retailer remains substantial at 74.06%, though insider activity logged $12.9M in net sales over the trailing 12 months, according to GuruFocus. Lowe's previously recorded fiscal 2025 sales exceeding $86 billion, with a scheduled webcast replay of the upcoming conference call set to remain online through Nov. 17, 2027.