Lowe's earnings show contractor demand holding up as housing stays weak
Lowe’s strong Pro demand and weak housing point to the same floor-level pressures Home Depot associates already know: fewer big remodels, more contractor work.
Weak housing demand is still steering the business toward smaller fixes and contractor work, and that is the signal Home Depot associates should watch on the sales floor. Lowe’s said professional contractors helped carry its quarter, even as it flagged softer housing demand and higher fuel costs, a combination that usually shows up as more price-sensitive customers, tighter attention to delivery costs and less lift from big-ticket remodeling jobs.
Lowe’s said first-quarter comparable sales rose 0.6%, adjusted diluted earnings per share came in at $3.03 and revenue reached $23.1 billion for the quarter ended May 1. The company also recorded $96 million in pre-tax expenses tied to the acquisitions of Foundation Building Materials and Artisan Design Group, then reaffirmed its full-year 2026 outlook. For workers, the message is not that demand has vanished. It is that the demand that remains is more selective, more Pro-driven and less dependent on a broad housing upcycle.
That matters at Home Depot because the same pattern has been showing up there too. Home Depot said first-quarter sales rose 4.8% to $41.8 billion, with comparable sales up 0.6% globally and 0.4% in the U.S. Net earnings were $3.3 billion, or $3.30 per diluted share, and the company reaffirmed fiscal 2026 guidance. The numbers suggest a market that is still moving, but not with the easy momentum store teams get when homeowners are chasing large remodels and new builds.
Home Depot has been leaning harder into the contractor channel, especially after completing its $18.25 billion acquisition of SRS Distribution on June 18, 2024. SRS serves professional roofer, landscaper and pool contractor customers, which fits the broader push toward job-site delivery, special orders and faster problem solving for pros. In practical terms, that means Pro desks and delivery coordination can matter as much as, or more than, the kind of discretionary DIY traffic that surges in a hot housing market.
Home Depot’s March 2026 Pro Forecast pointed the same way. It said home values were rising 1.9% and incomes were up 3.3%, with affordability expected to improve in 20 major U.S. housing markets. It also said building-material costs had risen 3.5% year over year, the highest increase in three years. JPMorgan said in January 2026 that U.S. house prices were expected to stall at 0% this year while home sales gradually improved. For store leaders, that is the operating backdrop: a slow, uneven market where contractors keep moving, repairs stay active and every sale has to be won with speed, service and sharp execution.
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