Lowe's Companies, Inc. (NYSE:LOW) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Lowe's Companies reported in line with analyst predictions, delivering revenues of US$84b and statutory earnings per share of US$12.23, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Lowe's Companies

Following last week's earnings report, Lowe's Companies' 32 analysts are forecasting 2026 revenues to be US$84.7b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$12.29, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$84.7b and earnings per share (EPS) of US$12.58 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$279, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Lowe's Companies, with the most bullish analyst valuing it at US$309 and the most bearish at US$217 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Lowe's Companies shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 1.2% growth on an annualised basis. That is in line with its 1.1% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 5.1% annually. So although Lowe's Companies is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lowe's Companies. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lowe's Companies' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Lowe's Companies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Lowe's Companies going out to 2028, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Lowe's Companies (1 is a bit concerning!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.