WD-40 Company (NASDAQ:WDFC) Crushes Q3 Estimates, Pushes Stock to Double-Digit Gains
WD-40 Company (NASDAQ:WDFC) delivered a standout performance in its fiscal third quarter, blowing past analyst expectations on both the top and bottom lines and sending shares surging in after-hours trading. The company reported net sales of $195.1 million for the quarter ended May 31, 2026, a 24% increase year-over-year. This figure significantly exceeded the consensus analyst estimate of $176.2 million.
On the earnings front, the beat was even more pronounced. Non-GAAP adjusted diluted earnings per share (EPS) came in at $2.33, crushing the analyst estimate of $1.59 and representing a 51% jump compared to the $1.54 reported in the same quarter last year.
The market’s reaction was immediate and forceful. Following the release, shares of WD-40 surged approximately 14% in after-market trading, a clear signal that the market was pricing in a much weaker outcome than what management delivered. The stock had already been on a strong run, gaining roughly 20% over the past month, but this quarterly report validated the upward momentum.
Segment Performance
The 24% total sales growth was broad-based, with all three of the company’s trade blocs contributing to the momentum.
- Americas: Sales rose 29% to $101.2 million, driven by a 31% increase in maintenance product sales. Strong performance in the United States was fueled by expanded distribution and a high-impact promotional program. Latin America also saw solid gains, particularly in Brazil and Mexico.
- EIMEA (Europe, India, Middle East, Africa): Sales increased 17% to $66.6 million. Growth was attributed to higher sales volume in both direct and distributor markets, as well as favorable currency tailwinds. The region also benefited from customer inventory builds ahead of anticipated price increases.
- Asia-Pacific: Sales jumped 24% to $27.3 million. China led the way with higher sales volumes supported by promotional programs and expanded distribution across online and industrial channels.
Operational Highlights
The company’s profitability also showed marked improvement. Gross margin expanded to 56.6%, up from 56.2% in the prior year, showcasing the company's pricing power and operational leverage.
Key financial metrics for the quarter include:
- Operating Income: $40.3 million, up 47% year-over-year.
- Net Income: $30.2 million, up 44% year-over-year. Excluding a one-time amortization expense related to the reclassification of homecare and cleaning assets, adjusted net income was $31.5 million, up 50%.
- Dividend & Buybacks: The Board declared a quarterly dividend of $1.02 per share. Additionally, the company repurchased 31,250 shares during the quarter and approved a new $100 million share repurchase program effective September 1, 2026.
Updated Outlook vs. Analyst Estimates
Management used the strong results to update their full-year fiscal 2026 guidance. The company now expects net sales, excluding the impact of foreign currency fluctuations, to be between $652 million and $667 million. On a reported basis, including current exchange rates, that range moves to $675 million to $690 million.
This outlook is notably higher than the current analyst consensus, which had modeled full-year sales of roughly $674.9 million. The company also tightened its non-GAAP diluted EPS guidance to a range of $6.05 to $6.35. For comparison, analysts had been projecting full-year EPS of approximately $6.15, placing the new midpoint of management’s guidance slightly ahead of street expectations.
It is worth noting that the guidance now includes the impact of the company’s Americas homecare and cleaning brands, which the company previously considered for divestiture. Management decided to "no longer actively market" these brands and reclassify them, adding approximately $12 million in net sales and $0.17 in diluted EPS to the full-year outlook.
Analyst & Investor Takeaway
The combination of a massive earnings beat, an upgraded full-year forecast, and a new $100 million buyback authorization has created a powerful bullish catalyst for the stock. The company’s “Must-Win Battles” strategy—focusing on geographic expansion, the WD-40 Specialist line, premiumized products, and e-commerce—is clearly gaining traction and delivering double-digit growth across the board.
For a deeper look at how WD-40 has performed historically and to track future projections against analyst estimates, view the detailed earnings history and consensus forecasts.
View WD-40 Earnings History and Estimates
See Analyst Ratings and Forecasts for WDFC
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.
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WD-40 Co (NASDAQ:WDFC) Surges on Q3 Earnings Beat and Upgraded Outlook
WD-40 Company (NASDAQ:WDFC) Crushes Q3 Estimates, Pushes Stock to Double-Digit Gains
WD-40 Company (NASDAQ:WDFC) delivered a standout performance in its fiscal third quarter, blowing past analyst expectations on both the top and bottom lines and sending shares surging in after-hours trading. The company reported net sales of $195.1 million for the quarter ended May 31, 2026, a 24% increase year-over-year. This figure significantly exceeded the consensus analyst estimate of $176.2 million.
On the earnings front, the beat was even more pronounced. Non-GAAP adjusted diluted earnings per share (EPS) came in at $2.33, crushing the analyst estimate of $1.59 and representing a 51% jump compared to the $1.54 reported in the same quarter last year.
The market’s reaction was immediate and forceful. Following the release, shares of WD-40 surged approximately 14% in after-market trading, a clear signal that the market was pricing in a much weaker outcome than what management delivered. The stock had already been on a strong run, gaining roughly 20% over the past month, but this quarterly report validated the upward momentum.
Segment Performance
The 24% total sales growth was broad-based, with all three of the company’s trade blocs contributing to the momentum.
Operational Highlights
The company’s profitability also showed marked improvement. Gross margin expanded to 56.6%, up from 56.2% in the prior year, showcasing the company's pricing power and operational leverage.
Key financial metrics for the quarter include:
Updated Outlook vs. Analyst Estimates
Management used the strong results to update their full-year fiscal 2026 guidance. The company now expects net sales, excluding the impact of foreign currency fluctuations, to be between $652 million and $667 million. On a reported basis, including current exchange rates, that range moves to $675 million to $690 million.
This outlook is notably higher than the current analyst consensus, which had modeled full-year sales of roughly $674.9 million. The company also tightened its non-GAAP diluted EPS guidance to a range of $6.05 to $6.35. For comparison, analysts had been projecting full-year EPS of approximately $6.15, placing the new midpoint of management’s guidance slightly ahead of street expectations.
It is worth noting that the guidance now includes the impact of the company’s Americas homecare and cleaning brands, which the company previously considered for divestiture. Management decided to "no longer actively market" these brands and reclassify them, adding approximately $12 million in net sales and $0.17 in diluted EPS to the full-year outlook.
Analyst & Investor Takeaway
The combination of a massive earnings beat, an upgraded full-year forecast, and a new $100 million buyback authorization has created a powerful bullish catalyst for the stock. The company’s “Must-Win Battles” strategy—focusing on geographic expansion, the WD-40 Specialist line, premiumized products, and e-commerce—is clearly gaining traction and delivering double-digit growth across the board.
For a deeper look at how WD-40 has performed historically and to track future projections against analyst estimates, view the detailed earnings history and consensus forecasts.
View WD-40 Earnings History and Estimates See Analyst Ratings and Forecasts for WDFC
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.
Read full article here »