LOW · 10-Q · 2026Q3 · Full report

Operating Income and Margins

LOWES COMPANIES INC · 2026-08-27 · Importance 25 · Surprise 32 · From source text

Second-quarter operating margin decreased 81 basis points to 13.67% from 14.48% despite an 8.3% increase in sales. Six-month operating margin decreased 84 basis points to 12.45% from 13.29%. Second-quarter net earnings remained $2.399 billion, while diluted EPS remained $4.27. Adjusted diluted EPS increased to $4.40 from $4.33 after excluding $96 million of acquisition-related intangible-asset amortization.

Key facts

• Net earnings used in the ROIC numerator was $6,642 million for the four quarters ended July 31, 2026 and $6,858 million for the four quarters ended August 1, 2025. source
• Lease adjusted net operating profit after tax was $7,935 million for the four quarters ended July 31, 2026 and $7,975 million for the four quarters ended August 1, 2025. source
• Net earnings in the second quarter of fiscal 2026 remained consistent with the second quarter of fiscal 2025 at $2.4 billion. source
• Return on invested capital was 25.5% for the four quarters ended July 31, 2026 and 29.5% for the four quarters ended August 1, 2025. source
• Net earnings to average debt and shareholders’ deficit was 21.3% for the four quarters ended July 31, 2026 and 25.3% for the four quarters ended August 1, 2025. source
• Adjusted diluted earnings per common share were $4.40 in the second quarter of 2026 excluding acquisition-related intangible amortization. source
• Diluted earnings per common share of $4.27 were recognized for both the second quarter of fiscal 2026 and fiscal 2025. source

Impact estimates