TLDR
- Ferguson posted adjusted EPS of $3.39, beating the Wall Street estimate of $3.30
- Net sales grew 4.6% to $8.75 billion, topping analyst expectations of $8.68 billion
- Full-year sales guidance upgraded to mid-single digit growth from low to mid-single digit
- Non-residential revenue rose 8% in Q2; residential returned to growth despite a weak market
- Ferguson completed five acquisitions in the quarter and agreed to acquire FloWorks
Ferguson Enterprises beat second-quarter earnings estimates on Monday and raised its full-year guidance, sending FERG stock up 1.3% to around $260 in premarket trading.
Adjusted EPS came in at $3.39, up from $3.22 a year ago and ahead of the Wall Street consensus of $3.30. Net sales rose 4.6% to $8.75 billion, beating analyst expectations of $8.68 billion.
Organic revenue in the US grew 4% for the quarter, with acquisition activity adding another 1% to growth.
CEO Kevin Murphy said the company delivered “market outperformance” in Q2 and that Ferguson returned to residential growth despite what he called a “challenging market backdrop.”
🚨 Ferguson Enterprises $FERG Q2 2026 Earnings
Steady growth + raised guidance…
with active M&A and continued capital returns 👀📊 KEY METRICS (Q2 2026)
🔹 Net Sales: $8.8B (+4.6% YoY) 🟢
• Organic: +3.8%
• Acquisitions: +1.0%
🔹 Operating Profit: $893M…— Emmanuel – Big Tech & AI Investor (@EmmanuelInvest) August 10, 2026
Residential end markets, which account for roughly half of Ferguson’s revenue, stayed soft. New construction activity was weak and repair and maintenance demand remained muted.
Non-Residential Drives the Quarter
Non-residential revenue was the standout, climbing 8% in the quarter. Large capital project activity stayed healthy, with growth in open order volumes and strong bidding activity.
Gross margin came in at 31.0%, down 20 basis points from a year ago. The company said the prior year margin was temporarily elevated by the timing of supplier price increases.
Reported diluted EPS was $3.43, up 6.9% year over year. Adjusted EBITDA for the quarter reached $994 million, a 3.2% increase.
Guidance Lifted, Acquisitions Continue
Ferguson upgraded its full-year net sales outlook to mid-single digit growth, up from its prior low to mid-single digit range. Adjusted operating margin guidance was tightened to 9.5% to 9.8% from a prior range of 9.4% to 9.8%.
Capital expenditure guidance was also raised, moving to $375 million to $425 million from $350 million to $400 million.
The company completed five acquisitions during the quarter, including Carrier Great Lakes, Dealers Supply Company, and PRD Technologies Group, among others. The deals added HVAC, waterworks, and industrial valve capabilities across multiple US regions.
After the quarter closed, Ferguson signed a definitive agreement to acquire FWI Holdings, known as FloWorks, a specialist in technical valves and flow control solutions. The deal is expected to close in Q3. Annualized revenue from all eight acquisitions announced so far this year totals approximately $1.4 billion.
Ferguson also cancelled its secondary listing on the London Stock Exchange, which took effect on July 20, 2026.
The company declared a quarterly dividend of $0.89 per share, payable October 7, 2026, to stockholders of record as of August 21, 2026.
FERG was added to the S&P 500 last week, replacing Electronic Arts. The stock is up more than 15% year to date, outpacing the broader index.
Wall Street currently models full-year 2026 sales of $32.74 billion, representing 4.6% growth from 2025.
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