Lowe's reported mixed second-quarter results as adjusted earnings beat Wall Street estimates but sales missed and the company narrowed its fiscal 2026 outlook below analyst expectations. Net sales for the quarter ended July 31 were $25.96 billion, below the $26.11 billion consensus, while adjusted earnings per share rose to $4.40 from $4.33 a year earlier and topped the $4.22 estimate. Net earnings were $2.4 billion, with GAAP diluted earnings unchanged at $4.27 per share. Both GAAP and adjusted results included an 11-cent benefit from IEEPA tariff refunds recognized in the quarter. Comparable sales increased 0.2%, extending Lowe's streak to five consecutive quarters of positive comparable growth, helped by strength in Pro and home services and a 15.7% rise in online sales. Chairman, President and CEO Marvin R. Ellison said sustained growth in Pro, Online and Home Services offset pressure in discretionary DIY spending. Gross margin narrowed to 33.04% from 33.81% a year earlier, while operating income rose to $3.55 billion from $3.47 billion and operating margin fell to 13.67% from 14.48%. The quarter also included $96 million in pretax expenses related to the acquisitions of Foundation Building Materials and Artisan Design Group. For the first six months of fiscal 2026, Lowe's generated $7.01 billion in operating cash flow, down from $7.61 billion a year earlier, and spent $1.06 billion on capital expenditures. It ended July with $3.17 billion in cash and cash equivalents, paid $673 million in dividends, and operated 1,761 stores spanning 196.0 million square feet of retail selling space. Lowe's now expects fiscal 2026 sales of about $92 billion, down from its prior range of $92 billion to $94 billion and below the $93.35 billion analyst estimate. It forecast comparable sales to be flat for the year, versus prior guidance of flat to up 2%, adjusted diluted earnings per share of about $12.25 and GAAP EPS of about $11.75. The company also guided for an operating margin of approximately 11.2% and an adjusted operating margin of about 11.6%. The outlook includes tariff refunds booked in the second quarter but excludes any potential additional refunds in the second half, signaling a cautious stance as discretionary DIY spending remains weak even as contractor-focused demand holds up better.