Lowe's Companies, Inc. (NYSE:LOW) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Lowe's Companies, Inc. (NYSE:LOW) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results were roughly in line with estimates, with revenues of US$24b and statutory earnings per share of US$4.27. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following last week's earnings report, Lowe's Companies' 30 analysts are forecasting 2026 revenues to be US$84.9b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$12.23, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$84.4b and earnings per share (EPS) of US$12.25 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Lowe's Companies

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$276. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Lowe's Companies, with the most bullish analyst valuing it at US$325 and the most bearish at US$221 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Lowe's Companies shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Lowe's Companies' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.0% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 1.6% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.6% per year. Although Lowe's Companies' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lowe's Companies' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$276, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Lowe's Companies. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Lowe's Companies analysts - going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Lowe's Companies (of which 1 doesn't sit too well with us!) you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.