Watsco Reports Q3 2026 Results with Revenue Growth Driven by Acquisitions
Watsco (WSO) reported third-quarter revenue of $2.22 billion, a 7% increase compared to the prior year, fueled primarily by the acquisition of Jackson Supply and a 4% rise in same-store sales. While top-line growth remains steady, non-GAAP EPS fell 5% to $3.77 due to margin compression caused by shifts in customer mix toward larger accounts and higher variable expenses. The company saw strong performance in residential HVAC equipment sales, which grew 7%, and a significant rebound in residential new construction sales. However, commercial HVAC equipment sales declined by 5%. Despite the earnings dip, Watsco maintains a robust balance sheet with $649 million in cash and zero debt, supported by a 79% year-to-date improvement in operating cash flow.
Tickers: $WSO
Topics: Acquisitions EPS Gross Margin HVAC Equipment Sales Revenue Growth Same-Store Sales