Watsco Q3 revenue rises 7% to record $2.22 billion; EPS falls 5% to $3.77
Watsco reported record third-quarter revenue of $2.22 billion, up 7%, helped by acquisitions, but diluted earnings per share fell 5% to $3.77 as gross margin and operating income declined. For the nine months, revenue rose 3% while earnings per share fell 7% to $9.72, and the company said residential unit volumes returned to growth.
Key points
- Q3 operating income fell 4% to $225 million; operating margin was 10.1% versus 11.4% a year earlier
- Q3 gross profit margin was 26.4% versus 27.5% last year; same-store sales rose 4%
- Nine-month operating cash flow rose 79% to $304 million
- Acquisitions of Jackson Supply (June 2026) and The Granite Group (October 2026) add 107 locations and $730 million in annualized revenue
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 7, 2026, 11:17 PM ET, from the text of the filing and its press-release exhibits only.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.