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Lowe’s (LOW) posted a Q3 EPS beat, contrasting with Home Depot’s (HD) miss from the day prior. While HD’s earnings miss and soft guidance bolstered cautious expectations, LOW’s standout results and relatively resilient outlook are triggering strong gains in the stock.

• LOW’s Q3 adjusted EPS of $3.06 topped consensus, up 6% yr/yr, with total sales reaching $20.8 bln and comparable sales rising 0.4% yr/yr, slightly above HD’s +0.2%, despite an approximate 100 bps hurricane headwind.
• Like HD, LOW trimmed its FY26 EPS guide to approximately $12.25, marginally below the prior $12.20-$12.45 range, citing soft DIY demand for large projects, ongoing macro uncertainty, and a quieter storm season.
• LOW nudged its FY26 revenue outlook higher ($86.0 bln vs prior $84.5-$85.5 bln) on the back of its strategic Foundation Building Materials (FBM) acquisition, though the FY26 comp guide was eased to flat from flat to +1%.
• The Pro business grew for the quarter, aided by the FBM deal closing in October, which expands portfolio, fulfillment reach, and cross-selling potential. Pro customer confidence and spending remain stable, with about 75% reporting healthy job prospects and credit access.
• November is off to a solid start, with comps rebounding into positive territory, helped by early holiday and seasonal momentum, strength in appliances, tools, and home decor categories.
• Executives highlighted continued operational discipline, productivity initiatives, and AI-driven efficiency gains, with positive comps in 10 of 14 merchandise divisions.
• Housing market sluggishness and high rates continue to weigh on big-ticket remodel demand, but LOW points to record homeowner equity ($400K avg), a persistent “lock-in effect,” and pent-up remodeling demand should rates ease.
• Smaller ticket repairs are holding up well.

Briefing.com Analyst Insight:

LOW delivered a reassuring Q3 that helped counteract the caution from HD’s outlook. Despite macro headwinds, the company beat earnings expectations and maintained revenue growth, thanks to solid Pro business trends and the FBM acquisition. Near-term results are hampered by consumer softness, but operational discipline, early positive Q4 comps, and growth in appliances point to relative resilience. While sector challenges remain, LOW appears well-positioned to outperform if the macro backdrop improves.