Watsco, Inc. (WSO)

Watsco’s second fiscal quarter of 2026 missed consensus on both the top and bottom line, based on preliminary results reported July 29, as revenue of about $2.1 billion versus an estimate of roughly $2.1 billion came in at a -1.8% miss and EPS of $4.00 versus $4.41 missed by -9.3%. Revenue still rose 2.1% from about $2.06 billion a year ago, led by the U.S. business at about $1.4 billion, up 1.3%, while gross margin held near 27.5% and operating margin was about 11.3% with operating income around $238 million. Net income fell 11.0% to about $163 million from $183.6 million a year ago, and EPS was down from $4.52. Watsco recorded negative operating cash flow of about $348 million and paid about $134 million in dividends. Consensus for the next period calls for EPS of $4.32 on revenue of $2.20 billion.