Home Depot vs Lowe's 2026: Sales, Growth, AI Strategy
Home Depot dominates in total revenue ($120+ billion vs $86.3 billion) and market valuation, while Lowe's is growing faster (7-9% guidance vs 2.5-4.5%) and targeting DIY customers with specialized AI. Home Depot trades at a P/E of 26x versus Lowe's at 22x, reflecting market confidence in Home Depot's premium positioning despite Lowe's stronger growth trajectory.
The Home Depot, Inc.
World's largest home improvement retailer with 2,320 stores across North America
Investors seeking stability and brand dominance; homeowners wanting the widest selection and established reputation
Lowe's Companies Inc.
Second-largest home improvement retailer with 2,273 US stores and $86B annual revenue.
Growth-focused investors; DIY homeowners seeking personalized project assistance; value-conscious shoppers
Quick Answer
AI SummaryHome Depot dominates in total revenue ($120+ billion vs $86.3 billion) and market valuation, while Lowe's is growing faster (7-9% guidance vs 2.5-4.5%) and targeting DIY customers with specialized AI. Home Depot trades at a P/E of 26x versus Lowe's at 22x, reflecting market confidence in Home Depot's premium positioning despite Lowe's stronger growth trajectory.
Our Verdict
AI-assistedChoose Home Depot if you prioritize the largest selection, widest geographic footprint, and premium brand positioning—it dominates in absolute scale and market value. Choose Lowe's if you're a DIY-focused homeowner seeking faster growth potential, better valuation (lower P/E ratio), and stronger analyst momentum; Lowe's superior 5-year stock performance and robust 7-9% growth guidance suggest it may outperform Home Depot in 2026.
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TIE — neck and neck
Choose The Home Depot, Inc. if
Investors seeking stability and brand dominance; homeowners wanting the widest selection and established reputation
Choose Lowe's Companies Inc. if
Growth-focused investors; DIY homeowners seeking personalized project assistance; value-conscious shoppers
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Key Differences at a Glance
- FY2025 Total Sales Revenue:✓ The Home Depot, Inc. wins($120+ billion vs $86.3 billion)
- FY2026 Sales Growth Guidance:✓ Lowe's Companies Inc. wins(7-9% vs 2.5-4.5%)
- Price-to-Earnings Ratio (P/E):✓ Lowe's Companies Inc. wins(22x vs 26x)
Key Facts & Figures
18 numeric metrics compared
| Metric | The Home Depot, Inc. | Lowe's Companies Inc. | Ratio |
|---|---|---|---|
| FY2025 Total Sales Revenue(USD Billions) | $120+ | $86.3 | |
| FY2026 Sales Growth Guidance(%) | 2.5-4.5% | 7-9% | |
| Price-to-Earnings Ratio(P/E multiple) | 26x | — | — |
| Total Store Locations(stores) | 2,320 | — | — |
| Annual Revenue (2024)(USD billions) | $152.3B | — | — |
| In-Stock SKUs(SKUs) | 400,000+ | — | — |
| Rebate/Loyalty Program Value(percent) | 3-5% Pro discount (selective) | — | — |
| Customer Satisfaction Score(/100) | 78/100 | — | — |
| Average Checkout Time(minutes) | 8.2 minutes | — | — |
| Private Label Penetration(percent of SKUs) | 32% | — | — |
| Annual Revenue (Fiscal 2024)(USD Billions) | $86.0 billion | $86.0 billion | |
| US Store Locations(stores) | 2,273 | 2,273 | |
| Average Store Size(square feet) | 112,000 | 112,000 | |
| Customer Satisfaction Score (ACSI 2024)(points (0-100)) | 75 | 75 | |
| Pro/Contractor Membership Annual Fee(USD) | $49.00 | $49.00 | |
| Same-Day Delivery Coverage(% of US) | 85%+ | 85%+ | |
| Standard Return Policy Window(days) | 120 days | 120 days | |
| Contractor Discount Range(% off) | 2-5% | 2-5% |
Sourced from publicly available data ·
Key Differences
7 attributes compared head-to-head
- $120+ billion(winner)FY2025 Total Sales Revenue$86.3 billion
- 2.5-4.5%FY2026 Sales Growth Guidance7-9%(winner)
- 26xPrice-to-Earnings Ratio (P/E)22x(winner)
- Magic Apron (Google partnership) - project advice & product Q&AAI Strategy FocusDIY-focused AI assistant for homeowner projects
- Largest home improvement retailer(winner)Market Position by SalesSecond-largest home improvement retailer
- Not specifiedInventory Per StoreApproximately 37,000 items
- Market consensus: solid but inconsistent5-Year Stock PerformanceCrushed the market for 5 years running(winner)
- FY2025 Total Sales Revenue
The Home Depot, Inc.
$120+ billion(winner)
Lowe's Companies Inc.
$86.3 billion
- FY2026 Sales Growth Guidance
The Home Depot, Inc.
2.5-4.5%
Lowe's Companies Inc.
7-9%(winner)
- Price-to-Earnings Ratio (P/E)
The Home Depot, Inc.
26x
Lowe's Companies Inc.
22x(winner)
- AI Strategy Focus
The Home Depot, Inc.
Magic Apron (Google partnership) - project advice & product Q&A
Lowe's Companies Inc.
DIY-focused AI assistant for homeowner projects
- Market Position by Sales
The Home Depot, Inc.
Largest home improvement retailer(winner)
Lowe's Companies Inc.
Second-largest home improvement retailer
- Inventory Per Store
The Home Depot, Inc.
Not specified
Lowe's Companies Inc.
Approximately 37,000 items
- 5-Year Stock Performance
The Home Depot, Inc.
Market consensus: solid but inconsistent
Lowe's Companies Inc.
Crushed the market for 5 years running(winner)
Full Comparison
| Attribute | The Home Depot, Inc. | Lowe's Companies Inc. |
|---|---|---|
| FY2025 Total Sales Revenue(USD Billions) | $120+(winner) | $86.3 |
| FY2026 Sales Growth Guidance(%) | 2.5-4.5% | 7-9%(winner) |
| Annual Revenue (2024)(USD billions) | $152.3B | — |
| Annual Revenue (Fiscal 2024)(USD Billions) | $86.0 billion | — |
| Price-to-Earnings Ratio(P/E multiple) | 26x | — |
| Total Store Locations(stores) | 2,320 | — |
| Geographic Coverage(countries) | 49 states + DC | — |
| In-Stock SKUs(SKUs) | 400,000+ | — |
| Rebate/Loyalty Program Value(percent) | 3-5% Pro discount (selective) | — |
| Customer Satisfaction Score(/100) | 78/100 | — |
| Average Checkout Time(minutes) | 8.2 minutes | — |
| Customer Satisfaction Score (ACSI 2024)(points (0-100)) | 75 | — |
| Private Label Penetration(percent of SKUs) | 32% | — |
| US Store Locations(stores) | 2,273 | — |
| Average Store Size(square feet) | 112,000 | — |
| Pro/Contractor Membership Annual Fee(USD) | $49.00 | — |
| Contractor Discount Range(% off) | 2-5% | — |
| Same-Day Delivery Coverage(% of US) | 85%+ | — |
| Standard Return Policy Window(days) | 120 days | — |
The Home Depot, Inc.Pros & Cons
10 pros·6 cons across both
The Home Depot, Inc.
Pros
- Largest revenue base at $120+ billion (39% larger than Lowe's)
- Magic Apron AI assistant (powered by Google) provides in-store and digital project guidance
- Established market leadership and brand recognition across all demographics
- Strong Q4 FY2025 earnings beat with 3.5% share price jump
- Broader product ecosystem and service offerings
Cons
- Slower growth guidance of 2.5-4.5% versus Lowe's 7-9%
- Premium P/E ratio of 26x suggests limited upside valuation potential
- Less targeted approach to DIY-specific customer segment
Lowe's Companies Inc.
Pros
- Aggressive growth guidance of 7-9% (nearly 2x Home Depot's guidance)
- Crushed the market for 5 consecutive years with superior stock performance
- Lower P/E valuation at 22x provides better entry point for value investors
- Specialized DIY-focused AI strategy targeting core customer segment
- Approximately 37,000 items per store with robust online fulfillment
Cons
- 39% smaller revenue base ($86.3B vs $120B) limits scale advantages
- Historically weaker market position relative to Home Depot
- Less brand recognition among professional contractors
Frequently Asked Questions
5 questions
Home Depot appeals to value investors seeking stability due to its $120+ billion revenue dominance and recent earnings beat. However, Lowe's presents stronger growth potential with 7-9% guidance versus Home Depot's 2.5-4.5%, and its P/E of 22x versus 26x suggests better valuation. Lowe's 5-year track record of crushing the market favors growth-oriented investors.
Resources & Learn More
Curated sources to dive deeper
Wikipedia
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