Watsco Q2 revenue rises 2% to $2.1 billion, but EPS falls 12% to $4.00
Watsco reported second-quarter 2026 revenue up 2% to $2.1 billion, with growth of 1% on a same-store basis. Profit fell, with operating income down 12% to $238 million and diluted earnings per share down 12% to $4.00, as gross margin narrowed to 27.5% from 29.3% a year earlier. The company also closed its Jackson Supply acquisition in June 2026, which it says has annualized sales of about $230 million.
Key points
- Q2 revenue rose 2% to $2.1 billion; gross profit fell 4% to $579 million
- Q2 diluted EPS fell 12% to $4.00, versus $4.52 a year earlier
- Year-to-date operating cash flow was a use of $21 million, a $164 million improvement from a $185 million use in 2025
- Jackson Supply, with about $230 million in annualized sales across 25 Sunbelt locations, was acquired in June 2026
The filing
Written by AI on Nov 8, 2026, 1:12 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on July 29, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.