filecrux
Oct 27, 11:51 AM
$WSO Is Watsco's record
$2.22B quarter enough when gross margin slipped to 26.4% and EPS fell 5%?
🏢 Watsco, the largest HVAC/R distributor in North America, was worth about
$11.65B at
$305.33 a share at 16:00 ET on October 26, 2026, and it grew Q3 2026 revenue 7% to a record
$2.22B while diluted EPS fell 5% to
$3.77 from
$3.98
📉 Gross margin slid to 26.4% from 27.5% a year ago, which Watsco tied to customer and end-market mix and to smaller OEM price increases in 2026 than in 2025
📈 On the other side, same-store sales rose 4% and residential equipment sales rose 7% on 5% unit growth, and Watsco says momentum continued into Q4 and that Q3 margin is more in line with historical seasonality
📅 Next: Watsco's Q3 call, 10:00 a.m. (EDT) on October 27, 2026; watch its word on Q4 gross margin as The Granite Group, a Northeast plumbing and HVAC distributor with about
$500M in sales bought October 9, joins
Source: GlobeNewswire release + SEC 8-K, Oct 27
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