Watsco (NYSE:WSO) posts Q3 2026 sales in line with estimates but GAAP-EPS misses

Watsco (WSO) reported Q3 2026 with improving demand and normalizing trends. CEO Albert Nahmad cited 7% growth in residential HVAC equipment, expects A2L transition to be largely over by year-end, and targets 30% gross margin after adding Granite, which generates $500M in sales.

Watsco reported Q3 2026 sales of $2.22B (+7% YoY), gross profit of $586M, and EPS of $3.77. The company highlighted investments in technology and initiatives like SupplySync, VCR, and Hydros. Operating cash flow improved 79% YoY to $304M. Watsco remains debt-free with $649M in cash. E-commerce sales grew 12% YoY, reaching 37% of total sales. The company discussed its strategic goals, including leveraging data, improving customer experience, and transforming supply chain operations.

Watsco (NYSE: WSO) shares fell 3.5% after reporting Q3 2026 earnings. Revenue of $2.22B beat estimates, but EPS of $3.77 missed expectations. Operating and free cash flow margins declined. The company expects acquisitions to boost annual revenue by 10%. Shares trade at $294.57, down 15.2% YTD.

Watsco Inc. (WSO) reported Q3 earnings of $3.77 per share, missing estimates of $4.12, despite revenue of $2.22B beating expectations. Shares fell 4.22% after-hours. Operating income declined 4% due to margin compression. The company completed two acquisitions and saw e-commerce sales grow 12%.

Watsco Inc. (WSO) reported Q3 profit of $155.4M, or $3.77 per share, missing analyst estimates of $4.13 per share. Revenue was $2.22B, exceeding expectations of $2.21B.

Watsco reported Q3 GAAP EPS of $3.77, missing estimates by $0.32, while revenue of $2.22B exceeded expectations by $10M, up 7.2% year-over-year. HVAC equipment sales rose 5%, driven by a 7% increase in residential products and a 5% decline in other segments.