← The Home Depot overview

The Home Depot vs Lowe's Companies: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

The Home Depot Inc (HD)

Q3 2026
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Home Depot resilient despite frozen housing and tariff drag

  • Solid Q2 results and dividend raise Home Depot beat Q2 estimates with 5.7% revenue growth and 1.7% comparable sales, raised its dividend for the 156th time, and resumed buybacks, showing steady execution despite a tough housing market.

    These results and shareholder returns were the main positive forces on the stock this quarter.

  • One-time tariff refund and cost cuts A $730 million one-time tariff refund boosted profit, while cost cuts and nationwide three-hour delivery improved efficiency and service, helping offset broader margin pressure from tariffs.

    This one-time gain and operational improvements directly lifted reported earnings and investor sentiment.

  • Frozen housing market and high rates Housing turnover stayed at historic lows and mortgage rates hit 7.45%, keeping big-ticket remodels weak. A Wolfe downgrade cited lock-in effects and rate risk, weighing on the stock.

    These housing and rate headwinds were the primary drag on demand and the stock price.

  • CEO medical leave adds uncertainty CEO Ted Decker’s medical leave introduced leadership uncertainty, while slowing consumer spending and tariff margin pressure added to near-term risks for the company.

    The unexpected CEO absence and macro pressures created uncertainty that weighed on the stock.

September 2026
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Home Depot's core demand stays frozen as mortgage rates hit a three-year high

  • Frozen housing market keeps big-ticket renovation demand weak Home Depot's CFO said housing turnover is stuck at historic lows for a fourth year, so customers are sticking to small repairs instead of big remodels. That directly limits sales growth in the company's most profitable categories and keeps a lid on the stock.

    This is the central demand problem weighing on HD and explains why sales remain under pressure.

  • Mortgage rates at 7.45% squeeze renovation budgets The average 30-year mortgage rate hit 7.45%, the highest in three years, adding thousands in yearly interest costs for buyers. With more income going to housing, there is less left for kitchen remodels and other big projects that drive Home Depot's sales.

    Rising rates are a fresh, concrete headwind that makes the frozen-housing problem worse for HD.

  • Professional contractor business keeps growing and gaining share Home Depot's sales to professional contractors grew again and beat do-it-yourself sales, helped by delivery improvements and its SRS acquisition reaching 90% of stores. Pros spend more per job, so this steady growth partly offsets the weak consumer side.

    This is the main positive force supporting HD's sales while the housing market is frozen.

  • Broad category strength and cost cuts support profit and buybacks Home Depot beat its own forecast with 13 of 16 product categories growing, and management plans billions in cost savings, a return to about 2x debt-to-EBITDA by mid-2027, and resumed share repurchases. That supports earnings per share even with soft sales.

    It shows the company's financial health and capital returns can lift the stock despite weak housing.

Latest
▲2▼2

Home Depot's core demand stays frozen as mortgage rates hit a three-year high

  • Frozen housing market keeps big-ticket renovation demand weak Home Depot's CFO said housing turnover is stuck at historic lows for a fourth year, so customers are sticking to small repairs instead of big remodels. That directly limits sales growth in the company's most profitable categories and keeps a lid on the stock.

    This is the central demand problem weighing on HD and explains why sales remain under pressure.

  • Mortgage rates at 7.45% squeeze renovation budgets The average 30-year mortgage rate hit 7.45%, the highest in three years, adding thousands in yearly interest costs for buyers. With more income going to housing, there is less left for kitchen remodels and other big projects that drive Home Depot's sales.

    Rising rates are a fresh, concrete headwind that makes the frozen-housing problem worse for HD.

  • Professional contractor business keeps growing and gaining share Home Depot's sales to professional contractors grew again and beat do-it-yourself sales, helped by delivery improvements and its SRS acquisition reaching 90% of stores. Pros spend more per job, so this steady growth partly offsets the weak consumer side.

    This is the main positive force supporting HD's sales while the housing market is frozen.

  • Broad category strength and cost cuts support profit and buybacks Home Depot beat its own forecast with 13 of 16 product categories growing, and management plans billions in cost savings, a return to about 2x debt-to-EBITDA by mid-2027, and resumed share repurchases. That supports earnings per share even with soft sales.

    It shows the company's financial health and capital returns can lift the stock despite weak housing.

July 2026
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Home Depot's profit gets a one-time tariff-refund boost as housing stays weak

  • One-time tariff refunds inflate profit Home Depot got $730 million back after the Supreme Court struck down old tariffs, using $685 million to lower costs. That lifted reported profit, but it is a one-time boost, not stronger customer demand, so investors should not expect it to repeat.

    This is the biggest new force behind HD's recent profit beat and explains why reported earnings look better than the underlying business.

  • Analyst downgrade on housing lock-in and rate risk Wolfe Research downgraded Home Depot to Peer Perform, citing the lock-in effect that keeps homeowners from moving, weaker returns from big Pro acquisitions, and rising rate risks. It prefers Lowe's, which can pressure HD shares as some investors rotate away.

    A fresh analyst downgrade directly changes how some investors value HD and highlights specific worries beyond daily price moves.

  • Improving housing affordability could revive renovation demand Lennar cut home prices to a nine-year low and mortgage rates dipped to 6.47%, making homes more affordable. Cheaper housing usually leads to more home sales and then bigger renovation projects, which would help Home Depot's sales over time.

    This points to a potential turn in the housing cycle, the main long-term driver of Home Depot's demand.

  • Tariff deadline pushed up import costs Retailers rushed Chinese imports before a July 24 tariff deadline, expecting costs to rise on furniture and appliances. Higher tariffs would squeeze Home Depot's margins unless it raises prices, which could hurt sales to budget-conscious customers.

    This is a new cost pressure that could offset the benefit of the tariff refunds and weigh on future profits.

▲2▼2

Home Depot's profit gets a one-time tariff-refund boost as housing stays weak

  • One-time tariff refunds inflate profit Home Depot got $730 million back after the Supreme Court struck down old tariffs, using $685 million to lower costs. That lifted reported profit, but it is a one-time boost, not stronger customer demand, so investors should not expect it to repeat.

    This is the biggest new force behind HD's recent profit beat and explains why reported earnings look better than the underlying business.

  • Analyst downgrade on housing lock-in and rate risk Wolfe Research downgraded Home Depot to Peer Perform, citing the lock-in effect that keeps homeowners from moving, weaker returns from big Pro acquisitions, and rising rate risks. It prefers Lowe's, which can pressure HD shares as some investors rotate away.

    A fresh analyst downgrade directly changes how some investors value HD and highlights specific worries beyond daily price moves.

  • Improving housing affordability could revive renovation demand Lennar cut home prices to a nine-year low and mortgage rates dipped to 6.47%, making homes more affordable. Cheaper housing usually leads to more home sales and then bigger renovation projects, which would help Home Depot's sales over time.

    This points to a potential turn in the housing cycle, the main long-term driver of Home Depot's demand.

  • Tariff deadline pushed up import costs Retailers rushed Chinese imports before a July 24 tariff deadline, expecting costs to rise on furniture and appliances. Higher tariffs would squeeze Home Depot's margins unless it raises prices, which could hurt sales to budget-conscious customers.

    This is a new cost pressure that could offset the benefit of the tariff refunds and weigh on future profits.

August 2026
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Home Depot beats Q2, dividend up, delivery push; housing still drags

  • Q2 beat and dividend raise Home Depot beat second-quarter expectations with revenue up 5.7% to $47.9 billion and earnings of $4.92 a share. Comparable sales rose 1.7%, the best since late 2022, and the company raised its dividend for the 156th straight time. Beating expectations and returning cash supports the stock.

    The earnings beat and dividend increase are the core new positive events driving HD this period.

  • Nationwide express delivery rollout Home Depot launched three-hour-or-less delivery from its 2,300-plus stores nationwide, with no membership required. This uses stores as local warehouses to serve contractors and do-it-yourself customers faster, which can lift sales and compete better with rivals, a new growth driver.

    This is a new operational initiative that could support future sales and competitive position.

  • Housing and consumer headwinds persist High mortgage rates and weak housing turnover kept big renovation projects depressed, and July housing starts fell below expectations. Goldman Sachs also warned consumer spending growth will slow sharply as tax refund boosts fade. These forces cap how much Home Depot's sales can grow.

    These are the main counterweights explaining why HD's outlook remains muted despite the beat.

  • CEO medical leave adds uncertainty CEO Ted Decker took a temporary medical leave six days before earnings, with no return date. The board named interim leaders, and the stock fell 1.9% on the news. Leadership uncertainty can weigh on shares, though the company still delivered strong results under interim management.

    This is a new event that created short-term uncertainty but did not derail quarterly results.

▲2▼1

Home Depot beats Q2, dividend up, delivery push; housing still drags

  • Q2 beat and dividend raise Home Depot beat second-quarter expectations with revenue up 5.7% to $47.9 billion and earnings of $4.92 a share. Comparable sales rose 1.7%, the best since late 2022, and the company raised its dividend for the 156th straight time. Beating expectations and returning cash supports the stock.

    The earnings beat and dividend increase are the core new positive events driving HD this period.

  • Nationwide express delivery rollout Home Depot launched three-hour-or-less delivery from its 2,300-plus stores nationwide, with no membership required. This uses stores as local warehouses to serve contractors and do-it-yourself customers faster, which can lift sales and compete better with rivals, a new growth driver.

    This is a new operational initiative that could support future sales and competitive position.

  • Housing and consumer headwinds persist High mortgage rates and weak housing turnover kept big renovation projects depressed, and July housing starts fell below expectations. Goldman Sachs also warned consumer spending growth will slow sharply as tax refund boosts fade. These forces cap how much Home Depot's sales can grow.

    These are the main counterweights explaining why HD's outlook remains muted despite the beat.

  • CEO medical leave adds uncertainty CEO Ted Decker took a temporary medical leave six days before earnings, with no return date. The board named interim leaders, and the stock fell 1.9% on the news. Leadership uncertainty can weigh on shares, though the company still delivered strong results under interim management.

    This is a new event that created short-term uncertainty but did not derail quarterly results.

Lowe's Companies Inc (LOW)

Q3 2026
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Lowe's Q2 Sales Beat but Guidance Cut on Weak DIY Demand

  • Q2 Sales Beat on Pro and Online Growth Lowe's Q2 sales rose 8.3% to $26 billion, powered by Pro and online growth (up 15.7%). Earnings beat estimates, and $80 million in tariff refunds boosted results. UBS also noted Lowe's defensive strengths against AI shopping agents.

    This point explains the positive drivers behind Lowe's Q2 performance, which supported the stock.

  • Full-Year Guidance Cut to Low End Lowe's cut full-year guidance to the low end (about $92 billion sales, ~$11.75 EPS) due to cautious DIY demand, a revenue miss, and softer new-home construction. This signaled weaker outlook than previously expected.

    This point highlights the negative revision to guidance, a key factor pressuring the stock.

  • Mortgage Rates Hit Three-Year High Mortgage rates reached a three-year high of 7.45–7.5%, pressuring big-ticket remodels as homeowners shifted to smaller projects, lowering average tickets. This weighed on demand for larger discretionary items.

    This point explains the macro headwind from high mortgage rates that hurt demand for big-ticket items.

  • Tariff Refunds Smaller Than Home Depot's Lowe's tariff refunds were far smaller than Home Depot's, and the sector was downgraded despite analyst preference for Lowe's. This relative disadvantage added pressure on the stock.

    This point shows a competitive disadvantage and sector downgrade that negatively affected Lowe's.

September 2026
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Lowe's squeezed by high mortgage rates and cautious homeowners

  • Lowe's cuts full-year outlook to low end Lowe's beat second-quarter earnings but lowered its fiscal 2026 guidance to the bottom of its ranges: sales about $92 billion, flat comparable sales, and earnings near $11.75 a share. The cut reflects soft demand, and it tells investors management sees no near-term pickup, weighing on the stock.

    This is the period's biggest company-specific news and directly explains why the outlook for LOW worsened.

  • Mortgage rates at three-year high of 7.45-7.5% The average 30-year mortgage rate jumped to 7.45-7.5%, the highest in three years, adding thousands in yearly payments for buyers. With less money left over, homeowners delay big remodels, which cuts into Lowe's sales of kitchens, baths and other large projects.

    Rising mortgage costs are the main outside force pressuring demand for home improvement, and they explain the stock's September slide.

  • Homeowners shift to smaller, cheaper projects Lowe's says customers are choosing small jobs like countertops or cabinets instead of full kitchen or bathroom renovations, and expects the second half to look like the first. Smaller projects mean lower average tickets, so sales grow slowly even as Lowe's gains market share.

    This explains the demand pattern behind the weak guidance and why comparable sales are barely positive.

  • UBS: Lowe's defensive strengths against AI shopping agents UBS named Lowe's one of six hardlines retailers best placed as AI shopping agents reshape retail, citing its installation services, technical expertise and project guidance. That differentiation is harder for AI agents to replace, suggesting Lowe's profit pool is more protected than pure product sellers.

    This is the one clearly positive new item, offering a counterweight to the demand worries.

Latest
▼3▲1

Lowe's squeezed by high mortgage rates and cautious homeowners

  • Lowe's cuts full-year outlook to low end Lowe's beat second-quarter earnings but lowered its fiscal 2026 guidance to the bottom of its ranges: sales about $92 billion, flat comparable sales, and earnings near $11.75 a share. The cut reflects soft demand, and it tells investors management sees no near-term pickup, weighing on the stock.

    This is the period's biggest company-specific news and directly explains why the outlook for LOW worsened.

  • Mortgage rates at three-year high of 7.45-7.5% The average 30-year mortgage rate jumped to 7.45-7.5%, the highest in three years, adding thousands in yearly payments for buyers. With less money left over, homeowners delay big remodels, which cuts into Lowe's sales of kitchens, baths and other large projects.

    Rising mortgage costs are the main outside force pressuring demand for home improvement, and they explain the stock's September slide.

  • Homeowners shift to smaller, cheaper projects Lowe's says customers are choosing small jobs like countertops or cabinets instead of full kitchen or bathroom renovations, and expects the second half to look like the first. Smaller projects mean lower average tickets, so sales grow slowly even as Lowe's gains market share.

    This explains the demand pattern behind the weak guidance and why comparable sales are barely positive.

  • UBS: Lowe's defensive strengths against AI shopping agents UBS named Lowe's one of six hardlines retailers best placed as AI shopping agents reshape retail, citing its installation services, technical expertise and project guidance. That differentiation is harder for AI agents to replace, suggesting Lowe's profit pool is more protected than pure product sellers.

    This is the one clearly positive new item, offering a counterweight to the demand worries.

July 2026
▲2▼1

Lowe's Q2: Pro and online growth offset DIY weakness, but guidance trimmed

  • Q2 sales rise 8.3% on Pro and online strength Lowe's second-quarter sales rose 8.3% to $26 billion, driven by professional contractors and online sales, which jumped 15.7%. This shows the company is still growing despite a cautious consumer, supporting the stock price.

    This is the main positive force behind Lowe's recent performance and investor sentiment.

  • Full-year guidance trimmed on DIY weakness Management cut its full-year sales outlook to about $92 billion and adjusted EPS to $12.25, citing cautious DIY spending and softer new-home construction. This lowers future profit expectations and pressures the stock.

    Guidance cuts directly affect investor expectations for future earnings and the stock's valuation.

  • Tariff refunds boost profits, but less than peers Lowe's received $80 million in tariff refunds after the Supreme Court struck down certain tariffs. While this helped earnings, it's only about one-ninth of Home Depot's refund, so the benefit is smaller and may not be sustainable.

    Tariff refunds are a one-time boost to profits, but the smaller amount limits the positive impact relative to competitors.

  • Analyst prefers Lowe's over Home Depot, but sector downgraded Wolfe Research downgraded Home Depot and the home improvement sector, but continues to prefer Lowe's for idiosyncratic upside. This relative preference may support Lowe's stock, though sector headwinds remain.

    Analyst actions can influence investor sentiment and relative performance within the sector.

▲2▼1

Lowe's Q2: Pro and online growth offset DIY weakness, but guidance trimmed

  • Q2 sales rise 8.3% on Pro and online strength Lowe's second-quarter sales rose 8.3% to $26 billion, driven by professional contractors and online sales, which jumped 15.7%. This shows the company is still growing despite a cautious consumer, supporting the stock price.

    This is the main positive force behind Lowe's recent performance and investor sentiment.

  • Full-year guidance trimmed on DIY weakness Management cut its full-year sales outlook to about $92 billion and adjusted EPS to $12.25, citing cautious DIY spending and softer new-home construction. This lowers future profit expectations and pressures the stock.

    Guidance cuts directly affect investor expectations for future earnings and the stock's valuation.

  • Tariff refunds boost profits, but less than peers Lowe's received $80 million in tariff refunds after the Supreme Court struck down certain tariffs. While this helped earnings, it's only about one-ninth of Home Depot's refund, so the benefit is smaller and may not be sustainable.

    Tariff refunds are a one-time boost to profits, but the smaller amount limits the positive impact relative to competitors.

  • Analyst prefers Lowe's over Home Depot, but sector downgraded Wolfe Research downgraded Home Depot and the home improvement sector, but continues to prefer Lowe's for idiosyncratic upside. This relative preference may support Lowe's stock, though sector headwinds remain.

    Analyst actions can influence investor sentiment and relative performance within the sector.

August 2026
▲2▼1

Lowe's Q2: Sales Up, But DIY Demand Stays Cautious

  • Q2 sales rise 8.3% to $26 billion Lowe's reported second-quarter sales of $26 billion, up 8.3% from a year earlier, driven by professional customers, online sales, and home services. This top-line growth shows the company is still expanding despite a tough consumer backdrop, which supports the stock price.

    This is the core new earnings result that directly moves the stock and answers what's driving LOW now.

  • Earnings beat, revenue miss, outlook at low end Lowe's beat earnings estimates at $4.40 per share but missed revenue expectations, and management kept its full-year outlook near the low end of prior guidance. This mixed result creates uncertainty about future growth, limiting the stock's upside even as profits hold up.

    The earnings beat and revenue miss are the key new financial details that explain the stock's mixed reaction.

  • CEO cites cautious DIY consumer CEO Marvin Ellison said customers are cautious about discretionary spending due to macro uncertainty, geopolitical uncertainty, and higher fuel prices. Weaker DIY demand pressures sales of big-ticket items, which are important for profit margins and overall growth.

    This explains the demand headwind that is holding back Lowe's sales and investor sentiment.

  • Tariff refunds and pro/online growth Lowe's received about $80 million in tariff refunds and saw strong growth in its professional contractor business and online sales, which rose 15.7%. These areas help offset weak DIY demand and support future earnings, giving investors a reason to stay positive.

    Tariff refunds and pro/online growth are new positive offsets that help explain why the stock didn't fall further.

▲2▼1

Lowe's Q2: Sales Up, But DIY Demand Stays Cautious

  • Q2 sales rise 8.3% to $26 billion Lowe's reported second-quarter sales of $26 billion, up 8.3% from a year earlier, driven by professional customers, online sales, and home services. This top-line growth shows the company is still expanding despite a tough consumer backdrop, which supports the stock price.

    This is the core new earnings result that directly moves the stock and answers what's driving LOW now.

  • Earnings beat, revenue miss, outlook at low end Lowe's beat earnings estimates at $4.40 per share but missed revenue expectations, and management kept its full-year outlook near the low end of prior guidance. This mixed result creates uncertainty about future growth, limiting the stock's upside even as profits hold up.

    The earnings beat and revenue miss are the key new financial details that explain the stock's mixed reaction.

  • CEO cites cautious DIY consumer CEO Marvin Ellison said customers are cautious about discretionary spending due to macro uncertainty, geopolitical uncertainty, and higher fuel prices. Weaker DIY demand pressures sales of big-ticket items, which are important for profit margins and overall growth.

    This explains the demand headwind that is holding back Lowe's sales and investor sentiment.

  • Tariff refunds and pro/online growth Lowe's received about $80 million in tariff refunds and saw strong growth in its professional contractor business and online sales, which rose 15.7%. These areas help offset weak DIY demand and support future earnings, giving investors a reason to stay positive.

    Tariff refunds and pro/online growth are new positive offsets that help explain why the stock didn't fall further.

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