Analyst Consensus ?
ConsensusHold26 ratings
Bullish830.8%
Neutral1661.5%
Bearish27.7%
1 unmapped firm rating excluded from the percentages.
Watsco, Inc. · WSO · FY2026 Q2 · Calendar Q3 2026
Watsco posts modest growth as margin and regional demand weigh
The supplied analysis supports a cautiously constructive operating thesis: technology adoption, digital sales, and the Jackson Supply acquisition provide growth avenues, but the evidence is tempered by lower gross margin, regional construction weakness, and inventory-related concerns.
Reported Before market openNYSEIndustrials
$12.54B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$4.00
Consensus $4.41
EPS surprise
-9.3%
Reported versus consensus
Reported revenue
$2.10B
Consensus $2.14B
Revenue surprise
-1.8%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
-12.9%
Event window
SPY move
-1.5%
Same window
Abnormal move
-11.4%
Stock minus SPY
Volume
5.5×
Versus trailing sessions
Subsequent drift
-1.8%
Up to 20 sessions
WSOSPY benchmark
Ask FN2 about WSO FY2026 Q2
Transcript, numbers and history already loaded
Why did WSO fall 12.9% after missing EPS estimates in FY2026 Q2?What changed in WSO's guidance and outlook in FY2026 Q2?Give me the bull and bear case for WSO after FY2026 Q2 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Compared with the prior analysis, the Jackson Supply acquisition had closed, digital sales had expanded to 37% of total sales, and OnCallAir had generated $1.9 billion in gross merchandise value. The current analysis also highlighted lower gross margin and a South-region new-construction slowdown, while maintaining the long-term 30% margin objective.
Guidance delta
Guidance sentiment was maintained in the supplied analysis; no new numerical guidance change was identified.
Key takeaways
- Revenue grew modestly, while gross margin declined year over year; management sees a path toward its long-term 30% margin goal.
- Digital channels remained a key operating theme: e-commerce reached 37% of sales, while OnCallAir generated $1.9 billion in gross merchandise value.
- Jackson Supply expands the Sunbelt footprint, while slower new-home construction in Florida and Texas is being offset by strength in northern markets.
Management priorities
- Scale digital sales and SupplySync.com for larger institutional customers
- Advance VCR vendor consolidation and Hydros logistics capabilities
- Continue integrating AI into pricing, inventory, and customer insights
Follow WSO with an agent that reads every filing, transcript, and price print. Free to start.
Try FN2 freeEarnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$301.04Current
$311Low
$395.77Average
$490High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 28, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Mizuho | Neutral | Neutral | Maintain | Oct 15, 2026 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | Oct 12, 2026 |
| Stephens & Co. | Overweight | Overweight | Maintain | Aug 17, 2026 |
| DA Davidson | Neutral | Neutral | Maintain | Jul 30, 2026 |
| Baird | Outperform | Outperform | Maintain | Jul 28, 2026 |
| JP Morgan | Neutral | Neutral | Maintain | Feb 19, 2026 |
| UBS | Neutral | Neutral | Maintain | Nov 6, 2025 |
| William Blair | Market Perform | Outperform | Downgrade | Oct 15, 2025 |
| Loop Capital | Hold | Hold | Maintain | Feb 27, 2025 |
| Keybanc | Overweight | Downgrade | Jul 10, 2023 | |
| Deutsche Bank | Hold | Hold | Maintain | Apr 24, 2023 |
| Wolfe Research | Underperform | Peer Perform | Downgrade | Jul 12, 2021 |
| Buckingham Research | Neutral | Neutral | Maintain | Feb 14, 2020 |
| Buckingham | Neutral | Neutral | Maintain | Feb 14, 2020 |
| Jefferies | Hold | Hold | Maintain | Oct 12, 2018 |
| Longbow Research | Neutral | Buy | Downgrade | Jul 30, 2018 |
| Stifel Nicolaus | Buy | Buy | Maintain | Apr 25, 2018 |
| Stifel | Buy | Buy | Maintain | Apr 25, 2018 |
| Seaport Global | Neutral | Accumulate | Downgrade | Jul 25, 2016 |
| Barclays | Underweight | Underweight | Maintain | Jul 25, 2016 |
| SunTrust Robinson Humphrey | Buy | Buy | Maintain | Jun 6, 2016 |
| Susquehanna | Outperform | Positive | Maintain | Jun 1, 2016 |
| Goldman Sachs | Neutral | Neutral | Maintain | Apr 20, 2016 |
| Global Hunter Securities | Buy | Accumulate | Maintain | Jul 19, 2013 |
| MKM Partners | Neutral | Buy | Downgrade | Jul 9, 2012 |
| Oppenheimer | Outperform | Outperform | Maintain | Apr 30, 2012 |
| BB&T Capital | Hold | Buy | Downgrade | Feb 16, 2012 |
Named analyst price targets
Upside is calculated against the persisted current price $301.04. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Morgan Stanley | Christopher Snyder | $330 | $279.9 | +9.6% | Oct 12, 2026 |
| D.A. Davidson | Chris Dankert | $330 | $302.41 | +9.6% | Jul 30, 2026 |
| Robert W. Baird | David Manthey | $400 | $310.57 | +32.9% | Jul 30, 2026 |
| Robert W. Baird | David Manthey | $420 | $364.37 | +39.5% | Jul 28, 2026 |
| Morgan Stanley | Analyst unavailable | $405 | $384.39 | +34.5% | Jul 10, 2026 |
| D.A. Davidson | Analyst unavailable | $385 | $384.81 | +27.9% | Jun 15, 2026 |
| Stephens | Tommy Moll | $485 | $438.47 | +61.1% | Apr 29, 2026 |
| Mizuho Securities | Analyst unavailable | $425 | $422.83 | +41.2% | Feb 18, 2026 |
| Morgan Stanley | Analyst unavailable | $370 | $370.6 | +22.9% | Jan 14, 2026 |
| UBS | Analyst unavailable | $370 | $354.22 | +22.9% | Jan 5, 2026 |
| Mizuho Securities | Analyst unavailable | $370 | $347.33 | +22.9% | Jan 5, 2026 |
| Wolfe Research | Analyst unavailable | $349 | $340.84 | +15.9% | Dec 9, 2025 |
| Mizuho Securities | Analyst unavailable | $400 | $369.33 | +32.9% | Oct 17, 2025 |
| Morgan Stanley | Analyst unavailable | $460 | $398.88 | +52.8% | Oct 8, 2025 |
| Morgan Stanley | Analyst unavailable | $505 | $456.55 | +67.8% | Jul 2, 2025 |
| Mizuho Securities | Brett Linzey | $490 | $453.09 | +62.8% | Apr 24, 2025 |
| Loop Capital Markets | Chris Dankert | $450 | $476.75 | +49.5% | Oct 29, 2024 |
| Robert W. Baird | David Manthey | $540 | $466.42 | +79.4% | Oct 24, 2024 |
| CFRA | Jonathan Sakraida | $415 | $481.39 | +37.9% | Sep 13, 2024 |
| Robert W. Baird | David Manthey | $522 | $491.62 | +73.4% | Jul 31, 2024 |
| Robert W. Baird | David Manthey | $460 | $440.6 | +52.8% | Apr 25, 2024 |
| CFRA | Jonathan Sakraida | $380 | $434.17 | +26.2% | Apr 1, 2024 |
| Mizuho Securities | Brett Linzey | $360 | $367.65 | +19.6% | Jul 25, 2023 |
| UBS | Analyst unavailable | $280 | $265.39 | -7.0% | Jan 10, 2023 |
| Deutsche Bank | Joe Ahlersmeyer | $311 | $304.39 | +3.3% | Aug 17, 2022 |
| Morgan Stanley | Analyst unavailable | $277 | $294.15 | -8.0% | Apr 22, 2022 |
Track every rating change on WSO the moment it posts. Free to start.
Start freeCompany context
Snapshot as of publicationWatsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean. It distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. The company also offers parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. It serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.
Historical context
All WSO earningsIndustrials peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| INIO INNIO N.V. Ordinary Shares | FY2026 Q3 · Calendar Q4 2026 | +29.5% | +2.1% | INIO posts record Q3, raises 2026 EBITDA guidance |
| ITW Illinois Tool Works Inc. | FY2026 Q3 · Calendar Q4 2026 | — | -0.1% | ITW: Strong Q3 growth, margin expansion and higher EPS outlook |
| UPS United Parcel Service, Inc. | FY2026 Q3 · Calendar Q4 2026 | — | +5.8% | UPS raises 2026 outlook as premium volume and efficiency support margins |
| PNR Pentair plc | FY2026 Q3 · Calendar Q4 2026 | — | +12.8% | Pentair reaffirms outlook as pool destocking ends and Taco closes |
| PCAR PACCAR Inc | FY2026 Q3 · Calendar Q4 2026 | — | -2.0% | PACCAR Q3: Parts Record, Supply Constraints Temper Outlook |
| HUBB Hubbell Incorporated | FY2026 Q3 · Calendar Q4 2026 | — | -5.1% | Hubbell: Strong Electrical Demand, Utility Constraints Temper Outlook |
Latest beats and misses
Who reports nextBeat on EPS
- HCAFY2026 Q3 · October 27, 2026+8.6% EPS-3.3% move
- GLWFY2026 Q3 · October 27, 2026+3.3% EPS-1.1% move
- STXFY2027 Q1 · October 27, 2026+3.1% EPS+3.7% move
- LPLAFY2026 Q3 · October 27, 2026+5.5% EPS+0.1% move
- RGENFY2026 Q3 · October 27, 2026+14.5% EPS-2.4% move
- NVSFY2026 Q3 · October 27, 2026+9.3% EPS+2.0% move
Missed on EPS
- HSBCFY2026 Q3 · October 27, 2026-4.5% EPS-5.7% move
- BROFY2026 Q3 · October 26, 2026-1.8% EPS-5.0% move
- PSA-PLFY2026 Q3 · October 26, 2026-32.1% EPS— move
- PSA-PNFY2026 Q3 · October 26, 2026-32.1% EPS— move
- PSA-POFY2026 Q3 · October 26, 2026-32.1% EPS— move
- PSA-PKFY2026 Q3 · October 26, 2026-32.1% EPS— move
Get the WSO recap when the next report posts
One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.
Sources
- Earnings call transcript and parsed analysis · 2026-08-14T22:17:29.838650+00:00
- FN2 earnings calendar · 2026-09-03T01:23:14.877038+00:00
- Polygon adjusted daily market bars · 2026-10-28T02:00:41.993420+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-28T02:00:41.990027+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-28. For educational purposes only; not investment advice.