FERG earnings analysis
What we found in FERG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Ferguson delivered $8.751 billion of revenue and $3.43 diluted EPS, beating consensus by approximately $140 million and $0.15, respectively. Revenue rose approximately 17% sequentially and 27% year over year, while management raised its 2026 sales and adjusted operating margin outlook. Gross-margin pressure and weakness in Canada remain headwinds, and the FloWorks acquisition is excluded from the outlook pending its expected Q3 2026 closing. The supplied 10-Q text reports no material changes to previously disclosed risk factors.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and EPS beat estimates
- Revenue was $8.751 billion, ahead of the $8.611 billion consensus estimate by approximately $140 million, or 1.6%. Diluted EPS was $3.43 versus the $3.28 estimate, a $0.15 beat.
- Strong sequential and annual growth
- Revenue increased from $7.47 billion in the prior quarter and $6.87 billion in the year-ago quarter, representing sequential growth of approximately 17% and year-over-year growth of approximately 27%.
- Full-year outlook raised
- Management raised the 2026 sales outlook to mid-single-digit growth from low- to mid-single-digit growth and lifted adjusted operating margin guidance to 9.5%-9.8% from 9.4%-9.8%.
- Higher planned capital investment
- Planned capital expenditures increased to $375-$425 million from $350-$400 million, indicating greater investment in capacity and infrastructure.
- Continued share repurchases
- The company completed $136 million of share repurchases under the April 2026 program by June 30, 2026, leaving $1.864 billion of the authorized $2 billion program available.
- Controls remained effective
- Management reported that disclosure controls remained effective at a reasonable assurance level as of June 30, 2026, with no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, controls.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Gross-margin pressure
- Gross-margin pressure remains a headwind: the prior-quarter gross margin was 31.0%, and management characterized the current results as including a gross-margin decline. Margin sensitivity could limit operating leverage despite the raised 9.5%-9.8% adjusted operating margin outlook.
- Canadian market weakness
- Canada remained weak relative to U.S. operations, creating geographic concentration risk even as consolidated revenue reached $8.751 billion. The filing does not provide a separate quantitative Canada revenue figure in the supplied text.
- FloWorks execution and timing
- The 2026 outlook excludes the expected impact of the FloWorks acquisition, which is expected to close in Q3 2026. Integration and timing risk therefore remain, particularly against the raised $375-$425 million capital expenditure plan.
- No material risk-factor updates
- The filing states that there were no material changes to the risk factors disclosed in the Transition Report. Accordingly, no new or updated material risk factor was identified in this quarter’s filing.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.43
What they said about what is next.
Management raised the 2026 net sales outlook from low- to mid-single-digit growth to mid-single-digit growth and increased adjusted operating margin guidance from 9.4%-9.8% to 9.5%-9.8%. Planned capital expenditures increased from $350-$400 million to $375-$425 million. Guidance excludes the expected impact of the FloWorks acquisition, which is expected to close in Q3 2026.
The filing reads better than the one before it.
What came before.
- 10-Q · May 5, 2026
- Ferguson reported Q1 2026 revenue of $7.472 billion, marking a 3.6% increase year-over-year. Diluted EPS rose 23.1% to $2.13, while gross margin improved to 31.0%. Segment performance was driven by strong growth in…
- 10-K · September 26, 2025
- Ferguson positions itself as the largest value‑added distributor in a $340 billion North American construction market, emphasizing scale (1,519 U.S. branches, 227 Canada branches) and value‑added services. Recent…
- 10-Q · March 11, 2025
- Ferguson reported quarterly revenue of $6,872 million, up $199 million (+3.0%) versus the prior-year quarter, but operating profit and diluted EPS declined to $410 million and $1.38, respectively. Cash increased to $764…
- 10-Q · December 10, 2024
- Ferguson Enterprises reported Q1 financial results with a slight revenue increase of 0.83% year-over-year, reaching $7.77 billion. However, diluted EPS decreased to $2.34, down from $2.54 in the prior year, reflecting…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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