LOWES COMPANIES INC 10-Q

low-20260501 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 1, 2026 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 1-7898 LOWE’S COMPANIES, INC. (Exact name of registrant as specified in its charter) North Carolina 56-0578072 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1000 Lowes Blvd. , Mooresville , NC 28117 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: ( 704 ) 758-1000 Former name, former address and former fiscal year, if changed since last report: Not Applicable Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.50 per share LOW New York Stock Exchange Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. CLASS OUTSTANDING AT 5/26/2026 Common Stock, $0.50 par value 560,707,041 LOWE’S COMPANIES, INC. - TABLE OF CONTENTS - Page No. Forward-Looking Statements ii PART I - Financial Information 1 Item 1. Financial Statements 1 Consolidated Statements of Earnings 1 Consolidated Statements of Comprehensive Income 1 Consolidated Balance Sheets 2 Consolidated Statements of Shareholders’ Deficit 3 Consolidated Statements of Cash Flows 4 Notes to Consolidated Financial Statements 5 Note 1: Summary of Significant Accounting Policies 5 Note 2: Acquisitio ns 5 Note 3: Revenue 6 Note 4: Restricted Investments 8 Note 5: Fair Value Measurements 8 Note 6 : Goodwill and Intangible Assets 8 Note 7 : Accounts Payable 10 Note 8 : Debt 11 Note 9 : Derivative Instruments 12 Note 10 : Shareholders’ Deficit 12 Note 1 1 : Earnings Per Share 12 Note 1 2 : Supplemental Disclosure 13 Note 1 3 : Segment Information 13 Report of Independent Registered Public Accounting Firm 16 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3. Quantitative and Qualitative Disclosures about Market Risk 22 Item 4. Controls and Procedures 22 PART II - Other Information 24 Item 1. Legal Proceedings 24 Item 1A. Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24 Item 5. Other Information 24 Item 6. Exhibits 25 Signature 26 i Table of Contents FORWARD-LOOKING STATEMENTS This Form 10-Q includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as “believe”, “expect”, “anticipate”, “plan”, “desire”, “project”, “estimate”, “intend”, “will”, “should”, “could”, “would”, “may”, “strategy”, “potential”, “opportunity”, “outlook”, “scenario”, “guidance”, and similar expressions are forward-looking statements. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives (including objectives related to environmental and social matters), business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services including customer acceptance of new offerings and initiatives, macroeconomic conditions and consumer spending, trade policy changes and tariffs, share repurchases, and Lowe’s strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. Such statements involve risks and uncertainties and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements. A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe’s and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, age of housing stock, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, geopolitical or armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers. Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in “Item 1A - Risk Factors” and “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” in our most recent Annual Report on Form 10-K and as may be updated from time to time in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law. ii Table of Contents Part I - FINANCIAL INFORMATION Item 1. Financial Statements Lowe’s Companies, Inc. Consolidated Statements of Earnings (Unaudited) In Millions, Except Per Share and Percentage Data Three Months Ended May 1, 2026 May 2, 2025 Current Earnings Amount % Sales Amount % Sales Net sales $ 23,078 100.00 % $ 20,930 100.00 % Cost of sales 15,535 67.32 13,944 66.62 Gross margin 7,543 32.68 6,986 33.38 Expenses: Selling, general and administrative 4,423 19.16 4,046 19.33 Depreciation and amortization 566 2.45 446 2.13 Operating income 2,554 11.07 2,494 11.92 Interest – net 399 1.73 337 1.61 Pre-tax earnings 2,155 9.34 2,157 10.31 Income tax provision 527 2.29 516 2.47 Net earnings $ 1,628 7.05 % $ 1,641 7.84 % Weighted average common shares outstanding - basic 559 559 Basic earnings per common share $ 2.90 $ 2.93 Weighted average common shares outstanding - diluted 560 560 Diluted earnings per common share $ 2.90 $ 2.92 See accompanying notes to the consolidated financial statements (unaudited). Lowe’s Companies, Inc. Consolidated Statements of Comprehensive Income (Unaudited) In Millions, Except Percentage Data Three Months Ended May 1, 2026 May 2, 2025 Amount % Sales Amount % Sales Net earnings $ 1,628 7.05 % $ 1,641 7.84 % Cash flow hedges – net of tax ( 3 ) ( 0.01 ) ( 3 ) ( 0.01 ) Other ( 2 ) ( 0.01 ) — — Other comprehensive loss ( 5 ) ( 0.02 ) ( 3 ) ( 0.01 ) Comprehensive income $ 1,623 7.03 % $ 1,638 7.83 % See accompanying notes to the consolidated financial statements (unaudited). 1 Table of Contents Lowe’s Companies, Inc. Consolidated Balance Sheets (Unaudited) In Millions, Except Par Value Data May 1, 2026 May 2, 2025 January 30, 2026 Assets Current assets: Cash and cash equivalents $ 786 $ 3,054 $ 982 Short-term investments 458 368 370 Receivables - net 1,151 96 1,090 Merchandise inventory - net 18,447 18,335 17,300 Other current assets 1,320 822 1,213 Total current assets 22,162 22,675 20,955 Property, less accumulated depreciation 18,254 17,636 18,362 Operating lease right-of-use assets 4,182 3,799 4,303 Long-term investments 247 300 319 Deferred income taxes - net — 118 — Goodwill 3,945 311 3,945 Intangible assets - net 5,807 274 5,908 Other assets 344 259 352 Total assets $ 54,941 $ 45,372 $ 54,144 Liabilities and shareholders' deficit Current liabilities: Short-term borrowings $ 380 $ — $ — Current maturities of long-term debt 810 4,183 2,431 Current operating lease liabilities 662 562 713 Accounts payable 11,975 11,235 9,762 Accrued compensation and employee benefits 972 853 1,285 Deferred revenue 1,629 1,500 1,477 Other current liabilities 3,846 4,055 3,795 Total current liabilities 20,274 22,388 19,463 Long-term debt, excluding current maturities 36,751 30,541 37,490 Noncurrent operating lease liabilities 3,937 3,669 4,043 Deferred income taxes - net 1,239 — 1,039 Deferred revenue - Lowe's protection plans 1,248 1,266 1,262 Other liabilities 762 762 764 Total liabilities 64,211 58,626 64,061 Shareholders' deficit: Preferred stock, $ 5 par value: Authorized – 5.0 million shares; Issued and outstanding – none — — — Common stock, $ 0.50 par value: Authorized – 5.6 billion shares; Issued and outstanding – 561 million, 560 million, and 561 million, respectively 280 280 281 Capital in excess of par value 68 13 370 Accumulated deficit ( 9,884 ) ( 13,833 ) ( 10,839 ) Accumulated other comprehensive income 266 286 271 Total shareholders' deficit ( 9,270 ) ( 13,254 ) ( 9,917 ) Total liabilities and shareholders' deficit $ 54,941 $ 45,372 $ 54,144 See accompanying notes to the consolidated financial statements (unaudited). 2 Table of Contents Lowe’s Companies, Inc. Consolidated Statements of Shareholders’ Deficit (Unaudited) In Millions Three Months Ended May 1, 2026 Common Stock Capital in Excess of Par Value Accumulated Deficit Accumulated Other Comprehensive Income Total Shares Amount Balance January 30, 2026 561 $ 281 $ 370 $ ( 10,839 ) $ 271 $ ( 9,917 ) Net earnings — — — 1,628 — 1,628 Other comprehensive loss — — — — ( 5 ) ( 5 ) Cash dividends declared, $ 1.20 per share — — — ( 673 ) — ( 673 ) Share-based payment expense — — 60 — — 60 Repurchases of common stock ( 1 ) ( 1 ) ( 364 ) — — ( 365 ) Issuance of common stock under share-based payment plans 1 — 2 — — 2 Balance May 1, 2026 561 $ 280 $ 68 $ ( 9,884 ) $ 266 $ ( 9,270 ) Three Months Ended May 2, 2025 Common Stock Capital in Excess of Par Value Accumulated Deficit Accumulated Other Comprehensive Income Total Shares Amount Balance January 31, 2025 560 $ 280 $ — $ ( 14,799 ) $ 288 $ ( 14,231 ) Net earnings — — — 1,641 — 1,641 Other comprehensive loss — — — — ( 2 ) ( 2 ) Cash dividends declared, $ 1.15 per share — — — ( 645 ) — ( 645 ) Share-based payment expense — — 53 — — 53 Repurchases of common stock ( 1 ) ( 1 ) ( 41 ) ( 30 ) — ( 72 ) Issuance of common stock under share-based payment plans 1 1 1 — — 2 Balance May 2, 2025 560 $ 280 $ 13 $ ( 13,833 ) $ 286 $ ( 13,254 ) See accompanying notes to the consolidated financial statements (unaudited). 3 Table of Contents Lowe’s Companies, Inc. Consolidated Statements of Cash Flows (Unaudited) In Millions Three Months Ended May 1, 2026 May 2, 2025 Cash flows from operating activities: Net earnings $ 1,628 $ 1,641 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 644 507 Noncash lease expense 169 131 Deferred income taxes 203 126 Loss on property and other assets - net 4 20 Share-based payment expense 65 58 Changes in operating assets and liabilities: Accounts receivable ( 63 ) ( 3 ) Merchandise inventory – net ( 1,145 ) ( 926 ) Other operating assets ( 125 ) ( 103 ) Accounts payable 2,212 1,945 Other operating liabilities ( 242 ) ( 17 ) Net cash provided by operating activities 3,350 3,379 Cash flows from investing activities: Purchases of investments ( 337 ) ( 391 ) Proceeds from sale/maturity of investments 319 375 Capital expenditures ( 521 ) ( 518 ) Proceeds from sale of property and other long-term assets 6 2 Other – net 32 ( 1 ) Net cash used in investing activities ( 501 ) ( 533 ) Cash flows from financing activities: Net change in commercial paper 378 — Repayment of debt ( 2,376 ) ( 778 ) Proceeds from issuance of common stock under share-based payment plans 2 2 Cash dividend payments ( 674 ) ( 645 ) Repurchases of common stock ( 363 ) ( 112 ) Other – net ( 12 ) ( 20 ) Net cash used in financing activities ( 3,045 ) ( 1,553 ) Net (decrease)/increase in cash and cash equivalents ( 196 ) 1,293 Cash and cash equivalents, beginning of period 982 1,761 Cash and cash equivalents, end of period $ 786 $ 3,054 See accompanying notes to the consolidated financial statements (unaudited). 4 Table of Contents Lowe’s Companies, Inc. Notes to Consolidated Financial Statements (Unaudited) Note 1: Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements (unaudited) and notes to the condensed consolidated financial statements (unaudited) are presented in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all the disclosures normally required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The condensed consolidated financial statements (unaudited), in the opinion of management, contain all normal recurring adjustments necessary to present fairly the consolidated balance sheets as of May 1, 2026, and May 2, 2025, and the statements of earnings, comprehensive income, shareholders’ deficit, and cash flows for the three months ended May 1, 2026, and May 2, 2025. The January 30, 2026, consolidated balance sheet was derived from the audited financial statements. The Company consolidates the financial results of Foundation Building Materials (FBM) and Artisan Design Group (ADG) on a one-month lag due to differences in reporting calendars. These interim condensed consolidated financial statements (unaudited) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Lowe’s Companies, Inc. (the Company) Annual Report on Form 10-K for the fiscal year ended January 30, 2026 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year. Reclassifications Receivables-net, Goodwill, and Intangible assets-net for the prior period ended May 2, 2025, were reclassified to conform with current period presentation and were previously included in Other current assets and Other assets on the consolidated balance sheets. Accounting Pronouncements Not Yet Adopted Accounting pronouncements not disclosed in this Form 10-Q or in the Annual Report are either not applicable to the Company or are not expected to have a material impact to the Company. Note 2: Acquisitions Artisan Design Group (ADG) On June 2, 2025, the Company completed the acquisition of ADG for an aggregate cash purchase price of $ 1.3 billion. Acquisition-related costs were expensed as incurred. ADG is a leading nationwide provider of design, distribution and installation services for interior surface finishes, including flooring, cabinets and countertops, to national, regional and local home builders and property managers. The acquisition has enhanced the Company’s Pro customer offerings by expanding its presence into a new distribution channel within a highly fragmented market. Intangible assets acquired totaled $ 714 million and include trademarks of $ 130 million with a useful life of 15 years, customer relationships of $ 550 million with a useful life of 20 years, backlog of $ 26 million, and non-compete agreements of $ 8 million with a useful life of 5 years, each of which are included in the intangible assets - net line item within the accompanying consolidated balance sheets. Goodwill of $ 366 million is primarily attributable to synergies associated with the acquisition. We expect $ 302 million of goodwill to be deductible for tax purposes. Foundation Building Materials (FBM) On October 9, 2025, the Company completed the acquisition of FBM for an aggregate cash purchase price of $ 8.8 billion. Acquisition-related costs were expensed as incurred. FBM strengthens the Company’s Total Home strategy by expanding our offerings to Pro customers through enhanced capabilities, faster fulfillment, improved digital tools, a robust trade credit platform, and significant cross-selling opportunities between FBM and Lowe's. Intangible assets acquired totaled $ 5,041 million, and include trademarks of $ 950 million with a useful life of 15 years, customer relationships of $ 3,920 million with a useful life of 20 years, backlog of $ 75 million, and a non-compete agreement of 5 Table of Contents $ 96 million with a useful life of 5 years, each of which are included in the intangible assets - net line item within the accompanying consolidated balance sheets. Goodwill of $ 3,254 million is primarily attributable to synergies associated with the acquisition. We expect $ 993 million of goodwill to be deductible for tax purposes. The following table summarizes our preliminary aggregate purchase price allocations: ADG FBM (In millions) June 2, 2025 October 9, 2025 Allocation: Cash acquired $ 2 $ 71 Receivables 202 912 Merchandise inventory 106 485 Other current assets 28 95 Property 36 512 Operating lease right-of-use assets 137 470 Goodwill 366 3,254 Intangible assets 714 5,041 Other assets 35 17 Current operating lease liabilities ( 31 ) ( 92 ) Accounts payable ( 73 ) ( 325 ) Accrued compensation and employee benefits ( 29 ) ( 77 ) Deferred revenue ( 22 ) ( 66 ) Other current liabilities ( 35 ) ( 150 ) Noncurrent operating lease liabilities ( 95 ) ( 348 ) Deferred income taxes, net ( 36 ) ( 995 ) Other liabilities ( 5 ) ( 26 ) Net assets acquired $ 1,300 $ 8,778 We have prepared analyses necessary to assess the fair values of the assets acquired and liabilities assumed and the amount of goodwill to be recognized as of the acquisition dates. These fair values were based on management’s estimates and assumptions; however, the amounts indicated above are preliminary in nature and are subject to adjustment as additional information is obtained about the facts and circumstances that existed as of the acquisition dates. Accordingly, there may be adjustments to the assigned values of acquired assets and liabilities assumed. The final determination of acquisition date fair values and residual goodwill will be completed as soon as practicable, and within the measurement period of up to one year from the acquisition dates as permitted under GAAP. Any adjustments to provisional amounts that are identified during the measurement period will be recorded in the reporting period in which the adjustment is determined. Measurement period adjustments recorded were immaterial as of May 1, 2026. Pro forma revenue and earnings since the acquisitions have not been provided as the acquisitions were not material to the consolidated financial statements. Note 3: Revenue Net sales consists primarily of revenue, net of sales tax, associated with contracts with customers for the sale of goods and services in amounts that reflect consideration the Company is entitled to in exchange for those goods and services. 6 Table of Contents The following table presents the Company’s sources of revenue: (In millions) Three Months Ended May 1, 2026 May 2, 2025 Products $ 22,055 $ 20,169 Services 706 544 Other 317 217 Net sales $ 23,078 $ 20,930 A provision for anticipated merchandise returns is provided through a reduction of sales and cost of sales in the period that the related sales are recorded. The merchandise return reserve is presented on a gross basis, with a separate asset and liability included in the consolidated balance sheets. The balances and classification within the consolidated balance sheets for anticipated sales returns and the associated right of return assets are as follows: (In millions) Classification May 1, 2026 May 2, 2025 January 30, 2026 Anticipated sales returns Other current liabilities $ 251 $ 245 $ 178 Right of return assets Other current assets 153 144 109 Deferred revenue - retail and stored-value cards Retail deferred revenue consists of amounts received for which customers have not yet taken possession of the merchandise or for which installation has not yet been completed. The majority of revenue for goods and services is recognized in the quarter following revenue deferral. Stored-value cards deferred revenue includes outstanding stored-value cards such as gift cards and returned merchandise credits that have not yet been redeemed. Deferred revenue for retail and stored-value cards are as follows: (In millions) May 1, 2026 May 2, 2025 January 30, 2026 Retail deferred revenue $ 1,157 $ 1,001 $ 936 Stored-value cards deferred revenue 472 499 541 Deferred revenue $ 1,629 $ 1,500 $ 1,477 Deferred revenue - Lowe’s protection plans The Company defers revenues for its separately-priced long-term extended protection plan contracts (Lowe’s protection plans) and recognizes revenue on a straight-line basis over the respective contract term. Expenses for claims are recognized in cost of sales when incurred. (In millions) May 1, 2026 May 2, 2025 January 30, 2026 Deferred revenue - Lowe’s protection plans $ 1,248 $ 1,266 $ 1,262 Three Months Ended (In millions) May 1, 2026 May 2, 2025 Lowe’s protection plans deferred revenue recognized into sales $ 144 $ 143 Lowe’s protection plans claim expenses 61 58 7 Table of Contents Disaggregation of Revenues The following table presents the Company’s net sales disaggregated by merchandise division: Three Months Ended May 1, 2026 May 2, 2025 (In millions) Net Sales % Net Sales % Home Décor 1 $ 7,174 31.1 % $ 7,095 33.9 % Building Products 2 6,813 29.5 6,839 32.7 Hardlines 3 6,786 29.4 6,572 31.4 Other 551 2.4 424 2.0 Retail Home Improvement 21,324 92.4 20,930 100.0 Other segment net sales 1,754 7.6 — — Total $ 23,078 100.0 % $ 20,930 100.0 % Note: Merchandise division net sales for the prior period have been reclassified to conform to the current period presentation. 1 Home Décor includes the following product categories: Appliances, Flooring, Kitchens & Bath, and Paint. 2 Building Products includes the following product categories: Building Materials, Electrical, Lumber, Millwork, and Rough Plumbing. 3 Hardlines includes the following product categories: Lawn & Garden, Power Equipment, Seasonal & Outdoor Living, and Tools & Hardware. The following table presents the Company’s net sales disaggregated by geographical area: (In millions) Three Months Ended May 1, 2026 May 2, 2025 United States $ 23,010 $ 20,930 Canada 68 — Net Sales $ 23,078 $ 20,930 Note 4: Restricted Investments Short-term and long-term investments include restricted balances pledged as collateral primarily for the Lowe’s protection plans program and are as follows: (In millions) May 1, 2026 May 2, 2025 January 30, 2026 Short-term restricted investments $ 458 $ 368 $ 370 Long-term restricted investments 247 300 319 Total restricted investments $ 705 $ 668 $ 689 Note 5: Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value measurements establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: • Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities • Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly • Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities 8 Table of Contents Assets and Liabilities that are Measured at Fair Value on a Recurring Basis The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of May 1, 2026, May 2, 2025, and January 30, 2026: Fair Value Measurements at (In millions) Classification Measurement Level May 1, 2026 May 2, 2025 January 30, 2026 Available-for-sale debt securities: U.S. Treasury securities Short-term investments Level 1 $ 185 $ 205 $ 195 Money market funds Short-term investments Level 1 90 79 81 Corporate debt securities Short-term investments Level 2 84 9 32 Certificates of deposit Short-term investments Level 1 53 10 31 Foreign government debt securities Short-term investments Level 2 34 4 21 Municipal obligations Short-term investments Level 2 9 2 10 Commercial paper Short-term investments Level 2 3 59 — U.S. Treasury securities Long-term investments Level 1 199 140 211 Corporate debt securities Long-term investments Level 2 44 115 92 Foreign government debt securities Long-term investments Level 2 4 38 16 Municipal obligations Long-term investments Level 2 — 7 — Derivative instruments: Fixed-to-floating interest rate swaps Other current liabilities Level 2 $ 16 $ 6 $ 15 Fixed-to-floating interest rate swaps Other liabilities Level 2 — 33 — There were no transfers between Levels 1, 2, or 3 during any of the periods presented. When available, quoted prices were used to determine fair value. When quoted prices in active markets were available, financial assets were classified within Level 1 of the fair value hierarchy. When quoted prices in active markets were not available, fair values for financial assets and liabilities classified within Level 2 were determined using pricing models, and the inputs to those pricing models were based on observable market inputs. The inputs to the pricing models were typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads, and benchmark securities, among others. The Company has performance-based contingent consideration related to the fiscal 2022 sale of the Canadian retail business which is classified as a Level 3 long-term investment, and such contingent consideration had an estimated fair value of zero as of May 1, 2026, May 2, 2025, and January 30, 2026. The Company’s measurements of fair value of the contingent consideration are based on an income approach, which requires certain assumptions considering operating performance of the business and a risk-adjusted discount rate. Changes in the estimated fair value of the contingent consideration are recognized within selling, general and administrative expenses (SG&A) in the consolidated statements of earnings. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis During the three months ended May 1, 2026, and May 2, 2025, the Company had no material measurements of assets and liabilities at fair value on a nonrecurring basis subsequent to their initial recognition. Other Fair Value Disclosures The Company’s financial assets and liabilities not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable, and long-term debt and are reflected in the financial statements at cost. With the exception of long-term debt, cost approximates fair value for these items due to their short-term nature. As further described in Note 9 , certain long-term debt is associated with a fair value hedge and the changes in fair value of the hedged debt is included in the carrying value of long-term debt in the consolidated balance sheets. The fair values of the Company’s unsecured notes were estimated using quoted market prices. 9 Table of Contents Carrying amounts and the related estimated fair value of the Company’s long-term debt, excluding finance lease obligations and the 2025 Term Loan, are as follows: May 1, 2026 May 2, 2025 January 30, 2026 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Unsecured notes (Level 1) $ 35,186 $ 32,070 $ 34,275 $ 30,563 $ 37,530 $ 34,907 Note 6: Goodwill and Intangible Assets Goodwill There were no changes to the carrying amount of goodwill by reportable segment as of May 1, 2026, from the amounts previously disclosed in the Company’s Annual Report for the fiscal year ended January 30, 2026. As of May 1, 2026, the Company does not have any goodwill impairment. Intangible Assets The gross carrying amount and accumulated amortization of intangible assets, consist of the following: May 1, 2026 May 2, 2025 January 30, 2026 (In millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets: Customer-related $ 4,722 $ ( 233 ) $ 4,489 $ 239 $ ( 100 ) $ 139 $ 4,722 $ ( 174 ) $ 4,548 Trademarks and trade names 1,100 ( 58 ) 1,042 20 ( 19 ) 1 1,100 ( 40 ) 1,060 Other 207 ( 65 ) 142 — — — 208 ( 42 ) 166 Total definite-lived intangible assets $ 6,029 $ ( 356 ) $ 5,673 $ 259 $ ( 119 ) $ 140 $ 6,030 $ ( 256 ) $ 5,774 Indefinite-lived intangible assets: Trademark $ 134 $ — $ 134 $ 134 $ — $ 134 $ 134 $ — $ 134 Total intangible assets $ 6,163 $ ( 356 ) $ 5,807 $ 393 $ ( 119 ) $ 274 $ 6,164 $ ( 256 ) $ 5,908 Our intangible asset amortization expense was $ 100 million and $ 3 million for the three months ended May 1, 2026, and May 2, 2025, respectively. Note 7: Accounts Payable The Company has an agreement with a third party to provide a supplier finance program which facilitates participating suppliers’ ability to finance payment obligations from the Company with designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to finance one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s outstanding payment obligations that suppliers financed to participating financial institutions, which are included in accounts payable on the consolidated balance sheets, are as follows: (In millions) May 1, 2026 May 2, 2025 January 30, 2026 Financed payment obligations $ 1,438 $ 1,606 $ 1,440 10 Table of Contents Note 8: Debt Revolving Credit Facilities On September 16, 2025, the Company entered into a $ 2.0 billion five-year unsecured credit agreement (2025 Credit Agreement) with a syndicate of banks, which has a maturity date of September 2030, replacing the Company’s $ 2.0 billion five-year unsecured revolving credit agreement entered into in December 2021, and as amended (Third Amended and Restated Credit Agreement). On September 16, 2025, the Company also amended the five-year unsecured revolving credit agreement dated September 1, 2023 (the 2023 Credit Agreement) with a syndicate of banks, which has a maturity date of September 2028 and an aggregate availability of $ 2.0 billion. Under the amendment, borrowings under the 2023 Credit Agreement will no longer be subject to a SOFR credit spread adjustment. The 2025 Credit Agreement and the 2023 Credit Agreement (collectively the Long-Term Credit Agreements) support the Company’s commercial paper program. The amounts available to be drawn under the Long-Term Credit Agreements are reduced by the amount of borrowings under the commercial paper program. Outstanding borrowings under the Company’s commercial paper program were $ 380 million, with a weighted average interest rate of 3.84 %, as of May 1, 2026. There were no outstanding borrowings under the Company’s Long-Term Credit Agreements as of May 1, 2026. As of May 2, 2025 and January 30, 2026, there were no outstanding borrowings under the Company’s commercial paper program or the Long-Term Credit Agreements. On September 16, 2025, the Company also entered into a $ 1.0 billion 364-day unsecured revolving credit agreement (collectively with the Long-Term Credit Agreements the “Revolving Credit Facilities”) which has a maturity date of September 2026 and had no outstanding borrowings as of May 1, 2026. Total combined availability under the Revolving Credit Facilities was $ 4.6 billion as of May 1, 2026. Long-Term Debt On September 16, 2025, the Company entered into a $ 2.0 billion unsecured term loan credit agreement (2025 Term Loan) which has a maturity date of October 2028. There was $ 2.0 billion in outstanding borrowings under the 2025 Term Loan as of May 1, 2026, with an interest rate of 4.661 %. In addition, on September 30, 2025, the Company issued $ 5.0 billion of unsecured fixed rate notes (collectively, the September 2025 Notes) as follows: Principal Amount (in millions) Maturity Date Interest Rate Discount (in millions) $ 650 October 2027 3.950 % $ 2 $ 750 October 2028 4.000 % $ 3 $ 1,100 March 2031 4.250 % $ 6 $ 1,300 October 2032 4.500 % $ 8 $ 1,200 October 2035 4.850 % $ 8 Interest on the September 2025 Notes with October maturity dates is payable semiannually in arrears in April and October of each year until maturity. Interest on the September 2025 Notes with March maturity dates is payable semiannually in arrears in March and September of each year until maturity. The indenture governing the September 2025 Notes contains a provision that allows the Company to redeem these notes at any time, in whole or in part, at specified redemption prices, plus accrued and unpaid interest. The indenture also contains a provision that allows the holders of the notes to require the Company to repurchase all or any part of their notes if a change of control triggering event occurs. If elected under the change of control provisions, the repurchase of the notes will occur at a purchase price of 101 % of the principal amount, plus accrued and unpaid interest. The indenture governing the September 2025 Notes does not limit the aggregate principal amount of debt securities that the Company may issue and does not require the Company to maintain specified financial ratios or levels of net worth or liquidity. 11 Table of Contents The discounts associated with these issuances, which include the underwriting and issuance discounts, are recorded in long-term debt and are being amortized over the respective terms of the notes using the effective interest method. Note 9: Derivative Instruments The Company utilizes fixed-to-floating interest rate swap agreements as fair value hedges on certain debt. The notional amounts for the Company’s material derivative instruments are as follows: (In millions) May 1, 2026 May 2, 2025 January 30, 2026 Fair value hedges: Fixed-to-floating interest rate swap agreements $ 550 $ 850 $ 550 See Note 5 for the gross fair values of the Company’s outstanding derivative financial instruments and corresponding fair value classifications. The cash flows related to settlement of the Company’s hedging derivative financial instruments are classified in the consolidated statements of cash flows based on the nature of the underlying hedged items. The Company accounts for the fixed-to-floating interest rate swap agreements as fair value hedges using the shortcut method of accounting under which the hedges are assumed to be perfectly effective. Thus, the change in fair value of the derivative instruments offsets the change in fair value on the hedged debt, and there is no net impact in the consolidated statements of earnings from the fair value of the derivatives. Note 10: Shareholders’ Deficit The Company has a share repurchase program that is executed through purchases made from time to time either in the open market, which may be made under pre-set trading plans meeting the requirements of Rule 10b5-1(c) of the Securities Exchange Act of 1934, or through private off-market transactions. Shares purchased under the repurchase program are returned to authorized and unissued status. Any excess of cost over par value is charged to additional paid-in capital to the extent that a balance is present. Once additional paid-in capital is fully depleted, remaining excess of cost over par value is charged to accumulated deficit. As of May 1, 2026, the Company had $ 10.5 billion remaining in its share repurchase program. The Company also withholds shares from employees to satisfy either the exercise price of stock options exercised or the statutory withholding tax liability resulting from the vesting of share-based awards. Total shares repurchased for the three months ended May 1, 2026, and May 2, 2025, were as follows: Three Months Ended May 1, 2026 May 2, 2025 (In millions) Shares Cost Shares Cost Share repurchase program 1 1.2 $ 302 — $ 1 Shares withheld from employees 0.3 63 0.3 71 Total share repurchases 1.5 $ 365 0.3 $ 72 1 Includes excise tax on share repurchases in excess of issuances as part of the cost basis of the shares acquired. Note 11: Earnings Per Share The Company calculates basic and diluted earnings per common share using the two-class method. The following table reconciles earnings per common share for the three months ended May 1, 2026, and May 2, 2025: 12 Table of Contents Three Months Ended (In millions, except per share data) May 1, 2026 May 2, 2025 Basic earnings per common share: Net earnings $ 1,628 $ 1,641 Less: Net earnings allocable to participating securities ( 5 ) ( 5 ) Net earnings allocable to common shares, basic $ 1,623 $ 1,636 Weighted-average common shares outstanding 559 559 Basic earnings per common share $ 2.90 $ 2.93 Diluted earnings per common share: Net earnings $ 1,628 $ 1,641 Less: Net earnings allocable to participating securities ( 5 ) ( 5 ) Net earnings allocable to common shares, diluted $ 1,623 $ 1,636 Weighted-average common shares outstanding 559 559 Dilutive effect of non-participating share-based awards 1 1 Weighted-average common shares, as adjusted 560 560 Diluted earnings per common share $ 2.90 $ 2.92 Anti-dilutive securities excluded from diluted weighted-average common shares 0.3 0.2 Note 12: Supplemental Disclosure Net interest expense is comprised of the following: Three Months Ended (In millions) May 1, 2026 May 2, 2025 Long-term debt $ 402 $ 358 Short-term borrowings 2 — Lease obligations 4 5 Interest income ( 9 ) ( 25 ) Interest capitalized ( 2 ) ( 2 ) Interest on tax uncertainties 1 1 Other 1 — Interest – net $ 399 $ 337 Supplemental disclosures of cash flow information: Three Months Ended (In millions) May 1, 2026 May 2, 2025 Cash paid for interest, net of amount capitalized $ 751 $ 665 Cash paid for income taxes – net 47 45 Non-cash investing and financing activities: Leased assets obtained in exchange for new finance lease liabilities $ 14 $ 13 Leased assets obtained in exchange for new operating lease liabilities 1 51 203 Cash dividends declared but not paid 673 645 1 Excludes $ 35 million of leases signed but not yet commenced as of May 1, 2026. Note 13: Segment Information The Company’s operations include one reportable operating segment, Retail Home Improvement, and the chief operating decision maker (CODM) is the Chairman, President, and Chief Executive Officer. Our operating segments reflect the way in 13 Table of Contents which internally reported financial information is regularly reviewed by the CODM who has the ultimate decision-making authority for resource allocation and assessing performance of our segments. • Retail Home Improvement Reportable Segment - We are engaged in retail operations that sell a wide assortment of home décor , hardlines, and building products both in stores and online throughout the United States. In addition, we have specialists on-site to provide services, including home improvement installation services, and tool and equipment rental. • Other - As discussed in Note 2 , in 2025, Lowe’s acquired FBM, a leading distributor of interior building products, and ADG, a nationwide provider of design, distribution and installation services for interior surface finishes. FBM operations are organized into two lines of business and represent two operating segments, Ceilings and Wall Systems and Commercial Doors and Hardware. ADG is deemed to be a separate operating segment, referred to as Interior Finishes. These three operating segments do not meet the thresholds prescribed under ASC Topic 280 to be deemed a reportable segment, therefore, results from these operating segments are presented in “Other”. The CODM regularly reviews operating income as the measure of each operating segment’s profit or loss, as well as significant segment expenses of our Retail Home Improvement segment to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Corporate expenses are allocated to the individual operating segments. The CODM also uses these measures in monitoring plan versus actual results. The CODM does not review segment assets at a different asset level or category than those disclosed in the consolidated balance sheets. The following table presents the Company’s operating income results for its Retail Home Improvement reportable segment, including significant segment expenses: Three Months Ended May 1, 2026 May 2, 2025 (In millions, except percentage data) Amount % Sales Amount % Sales Net Sales $ 21,324 100.00 % $ 20,930 100.00 % Less: Cost of sales 14,079 66.02 13,944 66.62 Expenses: Employee compensation and benefits 2,847 13.35 2,812 13.44 Occupancy and facility costs 492 2.31 469 2.24 Advertising 207 0.97 199 0.95 Other segment items 1 647 3.03 566 2.70 Selling, general and administrative: 4,193 19.66 4,046 19.33 Depreciation and amortization 466 2.19 446 2.13 Operating income $ 2,586 12.13 % $ 2,494 11.92 % 1 Other segment items primarily include financial services costs, technology service costs, insurance costs, impairment costs, and store environment initiative and display costs. 14 Table of Contents The following table presents a reconciliation of our Retail Home Improvement results to our consolidated totals: May 1, 2026 Retail Home Improvement Other Consolidated (In millions, except percentage data) Amount % Sales Amount % Sales Amount % Sales Net sales $ 21,324 100.00 % $ 1,754 100.00 % $ 23,078 100.00 % Operating income 2,586 12.13 ( 32 ) ( 1.82 ) 2,554 11.07 Interest – net 399 1.73 Pre-tax earnings 2,155 9.34 Income tax provision 527 2.29 Net earnings $ 1,628 7.05 % Prior to the fourth quarter of 2025, Retail Home Improvement was our only operating segment and represented our total Company consolidated results. Therefore, a reconciliation to our consolidated totals is not applicable for the quarter ended May 2, 2025. 15 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Lowe’s Companies, Inc. Results of Review of Interim Financial Information We have reviewed the accompanying condensed consolidated balance sheets of Lowe's Companies, Inc. and subsidiaries (the "Company") as of May 1, 2026 and May 2, 2025, the related condensed consolidated statements of earnings, comprehensive income, shareholders’ deficit, and cash flows, for the three-month periods ended May 1, 2026 and May 2, 2025, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America. We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of January 30, 2026, and the related consolidated statements of earnings, comprehensive income, shareholders’ deficit, and cash flows for the year then ended (not presented herein); and in our report dated March 23, 2026, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of January 30, 2026, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. Basis for Review Results This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. /s/ DELOITTE & TOUCHE LLP Charlotte, North Carolina May 28, 2026 16 Table of Contents Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This discussion and analysis summarizes the significant factors affecting our consolidated operating results, liquidity and capital resources during the three months ended May 1, 2026, and May 2, 2025. This discussion and analysis should be read in conjunction with the consolidated financial statements and notes to the consolidated financial statements that are included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2026 (the Annual Report), as well as the consolidated financial statements (unaudited) and notes to the consolidated financial statements (unaudited) contained in this report. Unless otherwise specified, all comparisons made are to the corresponding period of fiscal 2025. This discussion and analysis is presented in four sections: • Executive Overview • Operations • Financial Condition, Liquidity and Capital Resources • Critical Accounting Policies and Estimates EXECUTIVE OVERVIEW The following table highlights our financial results: Three Months Ended (in millions, except per share data) May 1, 2026 May 2, 2025 Net sales $ 23,078 $ 20,930 Net earnings 1,628 1,641 Diluted earnings per share $ 2.90 $ 2.92 Adjusted diluted earnings per share $ 3.03 N/A Net cash provided by operating activities $ 3,350 $ 3,379 Capital expenditures 521 518 Repurchases of common stock 1 365 72 Cash dividend payments 674 645 1 Repurchases of common stock on a trade-date basis. Net sales in the first quarter of fiscal 2026 improved 10.3% to $23.1 billion compared to net sales of $20.9 billion in the first quarter of fiscal 2025. Comparable sales for the first quarter of fiscal 2026 increased 0.6%, consisting of an increase in comparable average ticket of 1.5%, partially offset by a decrease of 0.9% in comparable customer transactions. Net earnings in the first quarter of fiscal 2026 remained consistent with the first quarter of fiscal 2025 at $1.6 billion. Diluted earnings per common share were $2.90 in the first quarter of fiscal 2026 compared to $2.92 in the first quarter of fiscal 2025. Included in the first quarter of 2026 results are pre-tax expenses of $96 million consisting of intangible asset amortization related to the acquisitions of ADG and FBM. Excluding the impact of this item, adjusted diluted earnings per common share were $3.03 in the first quarter of 2026 (see the non-GAAP financial measures discussion). For the first three months of fiscal 2026, cash flows from operating activities were approximately $3.4 billion, with $521 million used for capital expenditures. Continuing to deliver on our commitment to return cash to shareholders, during the first quarter of fiscal 2026, we paid $674 million in dividends and repaid $2.4 billion of bond maturities as we continued to progress toward our deleveraging commitment. The first quarter of fiscal 2026 continued to reflect a challenging macroeconomic environment. In addition, winter storms impacted the start of the quarter and delayed the beginning of the spring selling season. As weather improved, customers responded to our seasonal offerings, and we were encouraged by the improvement in demand. Despite these conditions, we delivered solid first quarter results through disciplined execution and continued progress against our Total Home strategy. We continued to drive growth in Pro, Online and Home Services, supported by our loyalty program, expanded fulfillment options and ongoing investments in technology and productivity initiatives. We remain focused on disciplined execution, productivity and strategic investments that position Lowe’s for sustainable long-term growth. 17 Table of Contents Tariffs Beginning in 2025, the United States enacted significant changes to its trade policy and imposed a series of new tariffs on most imported goods. For 2026, the tariff environment remains dynamic and subject to ongoing modification, including court rulings, changes to existing tariffs and potential for additional tariffs this year. We continue to monitor and comply with these changes and evaluate potential impacts, including possible adjustments to our merchandise assortment, pricing, and global supply chain strategies. The Company is the importer of record for certain imported products and pays tariffs directly. The Supreme Court declared on February 20, 2026 that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were invalid. Significant uncertainty remains as to the refund of IEEPA tariffs, including potential for appeal, timing of eligibility in future refund phases, and ultimate amounts to be received. OPERATIONS The following table sets forth the percentage relationship to net sales of each line item of the consolidated statements of earnings (unaudited), as well as the percentage change in dollar amounts from the prior period. This table should be read in conjunction with the following discussion and analysis and the consolidated financial statements (unaudited), including the related notes to the consolidated financial statements (unaudited). Three Months Ended Basis Point Increase/(Decrease) in Percentage of Net Sales May 1, 2026 May 2, 2025 Net sales 100.00 % 100.00 % N/A Gross margin 32.68 33.38 (70) Expenses: Selling, general and administrative 19.16 19.33 (17) Depreciation and amortization 2.45 2.13 32 Operating income 11.07 11.92 (85) Interest – net 1.73 1.61 12 Pre-tax earnings 9.34 10.31 (97) Income tax provision 2.29 2.47 (18) Net earnings 7.05 % 7.84 % (79) The following table sets forth key metrics utilized by management in assessing business performance. This table should be read in conjunction with the following discussion and analysis and the consolidated financial statements (unaudited), including the related notes to the consolidated financial statements (unaudited). Three Months Ended Other Metrics May 1, 2026 May 2, 2025 Comparable sales increase/(decrease) 1 0.6 % (1.7) % Customer transactions (in millions) 2 197 199 Average ticket 2 $ 107.65 $ 105.12 At end of period: Number of retail stores 1,759 1,750 Sales floor square feet (in millions) 196 195 Average retail store size selling square feet (in thousands) 3 112 112 Net earnings to average debt and shareholders’ deficit 22.5 % 26.7 % Return on invested capital 4 26.8 % 31.0 % 1 A comparable location is a retail location that has been open longer than 13 months. A location that is identified for relocation is no longer considered comparable in the month of its relocation. A location we decide to close is no longer considered comparable as of the beginning of the month in which we announce its closing. Comparable sales include online sales, which positively impacted first quarter fiscal 2026 and fiscal 2025 comparable sales by approximately 185 basis points and 65 basis points, respectively. Acquisitions are typically included in comparable sales after they have been owned for more than 12 months. 2 Customer transactions and average ticket represent metrics used by management to evaluate performance of our retail locations. 18 Table of Contents 3 Average store size selling square feet is defined as sales floor square feet divided by the number of stores open at the end of the period. 4 Return on invested capital is calculated using a non-GAAP financial measure. See below for additional information and reconciliations of non-GAAP measures. Non-GAAP Financial Measures Adjusted Diluted Earnings Per Share Adjusted diluted earnings per share is considered a non-GAAP financial measure. The Company believes this non-GAAP financial measure provides useful insight for analysts and investors in understanding the comparison of operational performance for fiscal 2026. Adjusted diluted earnings per share excludes the impact of a certain item, further described below. Fiscal 2026 Impacts During fiscal 2026, the Company recognized financial impacts from the following: • In the first quarter of fiscal 2026, the Company recognized pre-tax expenses o f $96 million consisting of intangible asset amortization related to the acquisitions of Artisan Design Group and Foundation Building Materials (Acquisition of businesses). Adjusted diluted earnings per share should not be considered an alternative to, or more meaningful indicator of, the Company’s diluted earnings per common share as prepared in accordance with GAAP. The Company’s methods of determining non-GAAP financial measures may differ from the method used by other companies and may not be comparable. Three Months Ended May 1, 2026 Pre-Tax Earnings Tax 1 Net Earnings Diluted earnings per share, as reported $ 2.90 Non-GAAP adjustments – per share impacts Acquisition of businesses 0.17 (0.04) 0.13 Adjusted diluted earnings per share $ 3.03 1 Represents the corresponding tax benefit or expense specifically related to the item excluded from adjusted diluted earnings per share. Return on Invested Capital Return on Invested Capital (ROIC) is calculated using a non-GAAP financial measure. Management believes ROIC is a meaningful metric for analysts and investors as a measure of how effectively the Company is using capital to generate financial returns. Although ROIC is a common financial metric, numerous methods exist for calculating ROIC. Accordingly, the method used by our management may differ from the methods used by other companies. We encourage you to understand the methods used by another company to calculate ROIC before comparing its ROIC to ours. We define ROIC as the rolling 12 months’ lease adjusted net operating profit after tax (Lease adjusted NOPAT) divided by the average of current year and prior year ending debt and shareholders’ deficit. Lease adjusted NOPAT is a non-GAAP financial measure, and net earnings is considered to be the most comparable GAAP financial measure. The calculation of ROIC, together with a reconciliation of net earnings to Lease adjusted NOPAT, is as follows: 19 Table of Contents Four Quarters Ended (In millions, except percentage data) May 1, 2026 May 2, 2025 Calculation of Return on Invested Capital Numerator Net Earnings $ 6,641 $ 6,843 Plus: Interest expense – net 1,468 1,299 Operating lease interest 178 176 Provision for income taxes 2,104 2,166 Lease adjusted net operating profit 10,391 10,484 Less: Income tax adjustment 1 2,500 2,520 Lease adjusted net operating profit after tax $ 7,891 $ 7,964 Denominator Average debt and shareholders’ deficit 2 $ 29,486 $ 25,661 Net earnings to average debt and shareholders’ deficit 22.5 % 26.7 % Return on invested capital 26.8 % 31.0 % 1 Income tax adjustment is defined as lease adjusted net operating profit multiplied by the effective tax rate, which was 24.1% and 24.0% for the periods ended May 1, 2026, and May 2, 2025, respectively. 2 Average debt and shareholders’ deficit is defined as average current year and prior year ending debt, including current maturities, short-term borrowings, and operating lease liabilities, plus the average current year and prior year ending total shareholders’ deficit. Results of Operations Net Sales – Net sales in the first quarter of 2026 increased 10.3% to $23.1 billion. Comparable sales increased 0.6%, consisting of a 1.5% increase in comparable average ticket, partially offset by a 0.9% decline in comparable customer transactions. During the first quarter of 2026, nine of our 13 product categories experienced positive comparable store sales, led by Rough Plumbing, Lawn & Garden, and Appliances. Strength in these categories reflects continued growth with our Pro customer and online, as well as our broad assortment of appliances available next-day to our customers in the majority of the United States. Gross Margin – For the first quarter of 2026, gross margin as a percentage of sales decreased 70 basis points compared to 2025. The gross margin decline for the quarter was driven by the operational cost structure of acquisitions during 2025, partially offset by favorability from credit revenue. SG&A – For the first quarter of 2026, SG&A expense leveraged 17 basis points as a percentage of sales compared to the first quarter of 2025, primarily due to the operational cost structure of acquisitions during 2025. Depreciation and Amortization – Depreciation and amortization deleveraged 32 basis points as a percentage of sales for the first quarter of 2026 compared to 2025, primarily due to amortization of intangible assets of acquired businesses in 2025. Interest – Net – Net interest expense for the first quarter of 2026 deleveraged 12 basis points as a percentage of sales primarily due to the costs related to the September 2025 debt issuance and the 2025 Term Loan. Income Tax Provision – Our effective income tax rates were 24.5% and 23.9% for the three months ended May 1, 2026 and May 2, 2025, respectively. FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES Sources of Liquidity Cash flows from operations, combined with our continued access to capital markets on both a short-term and long-term basis, as needed, remain adequate to fund our operations, make strategic investments to support long-term growth, return cash to 20 Table of Contents shareholders in the form of dividends, and repay debt maturities as they become due. We believe these sources of liquidity will continue to support our business for the next twelve months. As of May 1, 2026, we held $0.8 billion of cash and cash equivalents, as well as $4.6 billion in undrawn capacity on our Revolving Credit Facilities. Cash Flows Provided by Operating Activities Three Months Ended (In millions) May 1, 2026 May 2, 2025 Net cash provided by operating activities $ 3,350 $ 3,379 Cash flows from operating activities continued to provide the primary source of our liquidity. The decrease in net cash provided by operating activities for the three months ended May 1, 2026, compared to the three months ended May 2, 2025, was primarily driven by changes in working capital and lower net earnings. Cash Flows Used in Investing Activities Three Months Ended (In millions) May 1, 2026 May 2, 2025 Net cash used in investing activities $ (501) $ (533) Net cash used in investing activities primarily consists of transactions related to capital expenditures. Our capital expenditures generally consist of investments in our strategic initiatives to enhance our ability to serve customers, improve existing stores, and support expansion plans. Capital expenditures were $521 million and $518 million for the three months ended May 1, 2026, and May 2, 2025, respectively. For fiscal 2026, our guidance for capital expenditures is approximately $2.5 billion. Cash Flows Used in Financing Activities Three Months Ended (In millions) May 1, 2026 May 2, 2025 Net cash used in financing activities $ (3,045) $ (1,553) Net cash used in financing activities primarily consists of transactions related to our debt and cash dividend payments. Debt The 2025 Credit Agreement and the 2023 Credit Agreement (collectively the Long-Term Credit Agreements) support the Company’s commercial paper program. The amounts available to be drawn under the Long-Term Credit Agreements are reduced by the amount of borrowings under the commercial paper program. As of May 1, 2026, the Company had outstanding borrowings under the commercial paper program of $380 million. The following table includes additional information related to our debt for the three months ended May 1, 2026, and May 2, 2025: Three Months Ended (In millions) May 1, 2026 May 2, 2025 Repayment of debt (2,376) (778) Net change in commercial paper 378 — Maximum commercial paper outstanding at any period 1,000 — Weighted-average interest rate of short-term borrowings outstanding 3.84 % — % 21 Table of Contents Share Repurchases We have a share repurchase program, authorized by the Company’s Board of Directors, that is executed through purchases made from time to time either in the open market or through private off-market transactions. We also withhold shares from employees to satisfy tax withholding liabilities on share-based payments. Shares repurchased are retired and returned to authorized and unissued status. The following table provides, on a settlement date basis, the total number of shares repurchased, average price paid per share, and the total amount paid for share repurchases for the three months ended May 1, 2026, and May 2, 2025: Three Months Ended (In millions, except per share data) May 1, 2026 May 2, 2025 Total amount paid for share repurchases 1 $ 363 $ 112 Total number of shares repurchased 1.5 0.5 Average price paid per share $ 243.36 $ 243.44 1 Excludes unsettled share repurchases and unpaid excise taxes. As of May 1, 2026, we had $10.5 billion remaining available under our share repurchase program with no expiration date. Dividends are paid in the quarter immediately following the quarter in which they are declared. Dividends paid per share increased from $1.15 per share for the three months ended May 2, 2025, to $1.20 per share for the three months ended May 1, 2026. Capital Resources We expect to maintain our investment grade rating and have access to the capital markets on both a short-term and long-term basis when needed for liquidity purposes by issuing commercial paper or new long-term debt. The availability and the borrowing costs of these funds could be adversely affected, however, by a downgrade of our debt ratings or a deterioration of certain financial ratios. The table below reflects our debt ratings by Standard & Poor’s (S&P) and Moody’s as of May 28, 2026, which we are disclosing to enhance understanding of our sources of liquidity and the effect of our ratings on our cost of funds. Our commercial paper and senior debt ratings may be subject to revision or withdrawal at any time by the assigning rating organization, and each rating should be evaluated independently of any other rating. Debt Ratings S&P Moody’s Commercial Paper A-2 P-2 Senior Debt BBB+ Baa1 Senior Debt Outlook Stable Stable There are no provisions in any agreements that would require early cash settlement of existing debt or leases as a result of a downgrade in our debt rating or a decrease in our stock price. CRITICAL ACCOUNTING POLICIES AND ESTIMATES Our significant accounting policies are described in Note 1 to the consolidated financial statements presented in the Annual Report. Our critical accounting policies and estimates are described in “Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Annual Report. Our significant and critical accounting policies and estimates have not changed significantly since the filing of the Annual Report. Item 3. - Quantitative and Qualitative Disclosures about Market Risk The Company is exposed to certain market risks, including changes in interest rates, transportation costs, and commodity prices. The Company’s market risks have not changed materially from those disclosed in the Annual Report for the fiscal year ended January 30, 2026. Item 4. - Controls and Procedures The Company’s management, with the participation of the Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of the Company’s “disclosure controls and procedures,” (as such term is defined in Rule 13a-15(e) 22 Table of Contents promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act)). Based upon their evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that, as of May 1, 2026, the Company’s disclosure controls and procedures were effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the SEC (1) is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and (2) is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. The Company is undergoing a multi-year technology transformation which includes updating and modernizing our distribution and replenishment systems, as well as certain accounting and finance systems. These updates are expected to continue for the next few years, and management will continue to evaluate the design and implementation of the Company’s internal controls over financial reporting as the transformation continues. No change in the Company’s internal control over financial reporting occurred during the quarter ended May 1, 2026, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. 23 Table of Contents Part II – OTHER INFORMATION Item 1. - Legal Proceedings The Company is from time to time a party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of business. With respect to such lawsuits, claims, and proceedings, the Company records reserves when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. The Company applies a threshold of $1,000,000 for purposes of disclosing environmental proceedings involving a governmental authority, if any, under this Item 1. The Company does not believe that any of these proceedings, individually or in the aggregate, would be expected to have a material adverse effect on its results of operations, financial position, or cash flows. The Company maintains liability insurance for certain risks that are subject to certain self-insurance limits. Item 1A. - Risk Factors There have been no material changes in the Company’s risk factors from those disclosed in Part I, “Item 1A. Risk Factors” in our Annual Report filed with the SEC on March 23, 2026. Item 2. - Unregistered Sales of Equity Securities and Use of Proceeds Issuer Purchases of Equity Securities The following table sets forth information with respect to purchases of the Company’s common stock on a trade date basis made during the three months ended May 1, 2026: Total Number of Shares Purchased 1 Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs 2 Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs 2, 3 January 31, 2026 - February 27, 2026 339 $ 282.80 — $ 10,786,142,988 February 28, 2026 - April 3, 2026 1,489,283 243.36 1,224,766 10,486,130,126 April 4, 2026 - May 1, 2026 793 231.35 — 10,486,130,126 As of May 1, 2026 1,490,415 $ 243.36 1,224,766 $ 10,486,130,126 1 The total number of shares repurchased includes shares withheld from employees to satisfy either the exercise price of stock options or the statutory withholding tax liability upon the vesting of share-based awards. 2 On December 7, 2022, the Company announced that its Board of Directors authorized an additional $15.0 billion of share repurchases with no expiration. 3 Excludes excise tax on share repurchases in excess of issuances, which is recognized as part of the cost basis of the shares acquired in the consolidated statements of shareholders’ deficit. Item 5. - Other Information During the three months ended May 1, 2026, none of the Company’s directors or executive officers adopted or terminated any contract, instruction, or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement” (as those terms are defined in Regulation S-K, Item 408). 24 Table of Contents Item 6. - Exhibits Exhibit Number Incorporated by Reference Exhibit Description Form File No. Exhibit Filing Date 3.1 Restated Charter of Lowe’s Companies, Inc. 10-Q 001-07898 3.1 September 1, 2009 3.2 Bylaws of Lowe’s Companies, Inc., as amended and restated November 11, 2022. 8-K 001-07898 3.1 November 16, 2022 10.1 Form of Lowe ’ s Companies, Inc. Performance Share Unit Award Agreement.* 10.2 Form of Lowe ’ s Companies, Inc. Restricted Stock Award Agreement . * 15.1 Deloitte & Touche LLP Letter re Unaudited Interim Financial Information.‡ 31.1 Certification of Principal Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.‡ 31.2 Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.‡ 32.1 Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.† 32.2 Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.† 101.INS Inline XBRL Instance Document – the XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.‡ 101.SCH Inline XBRL Taxonomy Extension Schema Document.‡ 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.‡ 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.‡ 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.‡ 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.‡ 104 Cover Page Interactive Data File (formatted as Inline XBRL document and included in Exhibit 101).‡ * Indicates a management contract or compensatory plan or arrangement. ‡ Filed herewith. † Furnished herewith. 25 Table of Contents SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. LOWE’S COMPANIES, INC. (Registrant) May 28, 2026 By: /s/ Dan C. Griggs, Jr. Date Dan C. Griggs, Jr. Senior Vice President, Tax and Chief Accounting Officer 26