Lowe’s Companies Inc (NYSE:LOW) reported better-than-expected earnings, similar to Home Depot (NYSE:HD), but announced its 2026 guidance short of expectations, according to Telsey Advisory Group.

The Lowe’s Companies Analyst: Analyst Joseph Feldman maintained an Outperform rating, while raising the price target from $85 to $95.

The Lowe’s Companies Thesis: The company reported earnings of $1.98 per share, topping the consensus of $1.94 per share, with the upside driven by higher sales and gross margins, Feldman said in the note.

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"Demand was consistent across all regions, excluding January storms," he added.

Lowe’s 2026 guidance reflects a stable home improvement industry, which is expected to grow between -1% and +1%. That’s in line with Home Depot's guidance, reflecting low consumer confidence and affordability issues, the analyst stated.

He expects Lowe’s to outperform the industry, given its Total Home strategy, which is "strengthening merchandising and space productivity, leveraging technology, broadening the omnichannel model, and expanding the Pro business," he further wrote.

LOW Price Action: Shares of Lowe’s Companies had declined by 0.14% to $262.72 at the time of publication on Thursday.

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