$FERG · Ferguson Enterprises Inc. /DE/
Ferguson reported Q3 FY2026 (quarter ended September 30, 2026) net sales of $9.026B, up 9.5% year over year, driven by low- to mid-single-digit price inflation, higher volume, and 2.7% incremental acquisition sales. Net income was $598M (down from $638M a year ago), with GAAP diluted EPS of $3.08 and adjusted diluted EPS of $3.18, up 7.9% year over year. Gross margin was 30.9% versus 31.3% a year earlier, and operating margin was 9.8%.
- Net sales rose 9.5% to $9.026B in Q3 FY2026.
- Adjusted diluted EPS was $3.18, up 7.9% year over year.
- GAAP net income fell to $598M from $638M a year ago.
- Gross margin declined to 30.9% from 31.3%.
- FloWorks acquisition closed August 31, 2026, adding 2.7% to sales.
Shares rose 11.22% to $259.93 in the regular session, with extended-hours trading at $261.00 (+0.41% vs close), indicating a positive reception to the revenue beat and EPS growth.
Ferguson delivered strong top-line growth and EPS expansion despite margin pressure, reinforcing its position in North American construction distribution.
Ferguson's 9.5% revenue growth, led by non-residential demand, reflects continued strength in North American construction distribution despite a modest gross-margin compression.
Gross margin compression (30.9% vs 31.3%) from supplier rebate timing and higher interest expense ($64M vs $47M) pressured net income. Operating cash flow fell to $1,472M from $1,884M on higher working capital investment and cash taxes.