Lowe’s Maintains $12.25-$12.75 EPS Forecast as AI Offsets Rising Costs
Lowe’s reported Q1 comparable sales up 0.6% and adjusted EPS $3.03, beating estimates, and kept full-year EPS guidance at $12.25-$12.75. It plans to offset higher transportation and resin costs with AI-driven efficiencies, including its Mylow shopping assistant and AI support for store associates.
1. First-Quarter Financial Results
Lowe’s reported first-quarter comparable sales growth of 0.6%, slightly below expectations, while adjusted earnings per share of $3.03 topped analyst forecasts. Despite the beat on EPS, shares dipped 1.5% in morning trading following the sales miss.
2. AI-Driven Productivity Initiatives
The company cited its Mylow AI-powered shopping assistant, which delivers price quotes in minutes from photos, notes or spreadsheets, and AI tools enabling Spanish-language support for associates. CFO Brandon Sink said these initiatives will help counter near-term transport cost pressures.
3. Cost Headwinds and Outlook
Lowe’s noted rising transportation, plastics and resin expenses due to higher fuel and oil costs. Management maintained its full-year adjusted EPS guidance of $12.25 to $12.75, expecting AI efficiencies to temper these headwinds in the back half of 2026.