Q2 2026
EPS
$4.00
est $4.39-8.9%
Revenue
$2.10B
est $2.15B-1.9%
Watsco missed both earnings and revenue as gross margins compressed 180 basis points to 27.5%, a direct hit from last year's outsized refrigerant pricing benefits that won't repeat. The HVAC distributor posted $4.00 in diluted EPS versus $4.39 expected and $2.10 billion in revenue versus $2.15 billion expected, though management views current margins as normalized and is banking on a simpler post-transition operating environment to unlock better inventory turns.
