Lowe’s stock falls as company confronts ‘reality’ of tariffs, sluggish housing market

Brooke DiPalma · Senior Reporter

Thu, February 26, 2026 at 4:20 AM GMT+9 3 min read

In this article:

LOW

+0.52%

COST

-0.60%

GT

-0.65%

1913.HK

+1.91%

Lowe’s (LOW) stock fell on Wednesday after the home improvement retailer issued cautious guidance that overshadowed its fourth quarter earnings beat.

The company said it expects same-store sales growth to be flat to up 2% year over year in 2026. Wall Street was looking for 2% growth, according to Bloomberg consensus data.

“We’re just focused on the reality,” CEO Marvin Ellison told Yahoo Finance. “We have a very dynamic tariff environment, and that environment is in existence prior to the Supreme Court ruling, … in addition to the fact that we have housing turnover at its lowest level since the early 1990s.”

He added, “It was just really appropriate for us to be conservative because there’s so much that we don’t know about this macro [environment].”

NYSE - Nasdaq Real Time Price • USD

(LOW)

Follow    



  View Quote Details   

264.38 +1.36 (+0.52%)

As of 2:43:06 PM EST. Market Open.

LOW ^GSPC

Advanced Chart

Lowe’s full-year earnings forecast of approximately $12.25 to $12.75 per share fell short of the $13 per share forecast that Wall Street expected. The company also issued revenue guidance of $92 billion to $94 billion, which was roughly in line with the Street’s forecast of $93.2 billion.

For the fourth quarter, adjusted earnings of $1.98 were $0.04 higher than the Street predicted. Revenue grew 10% to $20.58 billion, slightly above the expectations of $20.35 billion.

Same-store sales rose 1.3% during the quarter, boosted by growth in its Pro business, home services sales, and a “strong holiday performance.”

_Read more: _Live coverage of corporate earnings

Tariffs, low housing turnover add pressure

The results for the quarter ended Jan. 30, 2026, follow the Supreme Court’s 6-3 ruling that deemed President Trump’s tariffs enacted under the International Emergency Economic Powers Act (IEEPA) illegal. The IEEPA tariffs brought in $133.5 billion in revenue, if not more, which could be subject to refunds.

Unlike other companies, such as Costco (COST), Goodyear (GT), and Prada (PRDSF), that sued the administration to preserve their right to a refund, Ellison said Lowe’s did not file and that it is “just too early to speculate about a refund.”

“What I will tell you is that when I talk to my legal team, there are quite a few maneuvers that the administration can take to prevent a refund from being a reality in the near-term, and so we’re not sitting back factoring in that we’re going to receive a refund,” he said.

An employee walks through a Lowe’s home improvement store on Aug. 20, 2024, in Los Angeles, Calif. (Eric Thayer/Getty Images) · Eric Thayer via Getty Images

Meanwhile, a stuck housing market has challenged the broader home improvement industry. Mortgage rates have hovered around 6%, sidelining many potential homebuyers.

Only 2.8% of US homes changed hands in 2025, marking the lowest turnover rate since 1995, according to Redfin data.

Story Continues  

Ellison said Lowe’s is still seeing a “lock-in” effect, where consumers are opting to renovate their homes rather than moving. That led to high-single-digit sales growth for Lowe’s home installation business.

“Customers [are] replacing key things in the home that are breaking down,” including water heaters, HVAC systems, windows, and doors, Ellison said.

During the State of the Union address on Tuesday night, President Trump addressed problems in the housing market, saying that lower interest rates will solve affordability concerns while preserving home values for those who already own homes.

Ellison said Americans have “record equity in homes” of about $400,000 on average, adding that “equity is a net benefit to the overall wealth portfolio of the homeowner.”

However, he said that his team is “not as focused on the policies” as it is on “providing a really good value for homeowners.”

—

Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance

Terms and Privacy Policy

Privacy Dashboard

More Info