Lowe's issued underwhelming 2026 sales guidance that overshadowed stronger-than-expected fourth-quarter results, sending shares lower in premarket trading. CEO Marvin Ellison described the housing-market backdrop as "pressured," with the company forecasting flat to 2% comparable sales growth for the fiscal year.

The home-improvement retailer reported Q4 adjusted earnings of $1.98 per share, surpassing estimates of $1.94. Comparable sales rose 1.3%, beating expectations of 0.47%, while net sales increased 11% to $20.58 billion, above forecasts. However, full-year earnings guidance of $12.25 to $12.75 per share fell short of the $13 consensus estimate.

Elevated home prices and muted hiring continue to constrain housing demand despite moderating interest rates. This challenging environment contrasts with peer Home Depot's unexpected increase in Q4 same-store sales. Lowe's remains focused on productivity initiatives as it navigates a housing market that shows few signs of immediate improvement.