The Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW) each reported comparable sales growth of 0.6% in Q1 2026 as large discretionary projects remained under pressure.
Home Depot reported sales of $41.8 billion, up 4.8%, with adjusted diluted earnings per share of $3.43, while Lowe’s reported sales of $23.1 billion, up 10.3%, with adjusted diluted earnings per share of $3.03.
Each company reaffirmed fiscal 2026 guidance while pointing to pressure tied to housing affordability and interest rates.
On their respective calls, Home Depot focused on fulfillment logic and online platform upgrades, while Lowe’s discussed Mylow and investments in planning systems.
Why It Matters: These home improvement moguls are positioning AI to become essential parts of their operating model as they apply digital tools to fulfillment, project planning, and online shopping to increase sales execution and customer loyalty.
- Refining Fulfillment Technology: Home Depot said it is using fulfillment logic to route orders based on distance, inventory availability, and delivery speed. Senior Executive Vice President Ann-Marie Campbell said the company has “begun to route orders to the optimal store for fulfillment,” which improves the chance of delivery success. Overall, the company reported fewer cancellations and higher customer satisfaction scores as this initiative ties the store network closer to online orders and delivery performance.
- Unifying Pro Workflows: The company has also brought its Pro tools into one workspace that supports project planning and team collaboration. Campbell said Pros can “build material lists more effectively through our AI-powered material list builder,” while also tracking deliveries and setting job site delivery preferences. The workspace gives Home Depot a more connected way to support planned Pro purchases and help customers manage work with greater visibility.
- Growing Mylow Customer Engagement: Lowe’s said Mylow, its AI assistant, now supports more than 1 million customer inquiries each month and helps customers with project guidance and home improvement questions. CEO Marvin Ellison said, “the conversion rate for online customers who use Mylow is triple that of customers who do not use the tool.” In addition, Lowe’s also reported 15.5% online sales growth for the quarter, showing how the tool fits into its digital shopping experience.
- Expanding Associate AI Tools: AI is helping Lowe’s associates complete Pro quote work faster and with less manual effort. Executive Vice President of Stores Joe McFarland said customers can submit a materials list digitally or physically, and associates can use the tool to turn it into an actionable quote. He said the process now takes minutes instead of days, while Mylow Companion has handled more than 5 million associate questions since launch.
- Pro Platforms Support Digital Growth: Home Depot and Lowe’s are using digital platforms to capture more Pro spending and improve service for project-based customers. Home Depot discussed CRM systems and delivery assets tied to its Pro distribution network, while Lowe’s pointed to MyLowe’s Pro Rewards and AI-enabled quoting for small and medium-sized Pros. The common thread is that growth for each company is becoming more connected to workflow tools and fulfillment execution.
Go Deeper -> Home Depot’s Earnings Report – MarketBeat
Lowe’s Earnings Report – MarketBeat
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