Watsco (WSO) Earnings: Q3 2026 Results

The quarter ended September 30, 2026 and Watsco published the results on October 27, 2026. Revenue and diluted EPS are shown against Q3 2025, the same quarter a year earlier, which takes seasonal swings out of the comparison.

• Watsco acquired Jackson Supply Company on June 1, 2026, and its locations added $77.8 million to Q3 2026 revenues. The Granite Group closed on October 9, 2026, after the quarter ended, so it is not in these figures.
• Watsco's same-store figures exclude locations opened, acquired or closed in the preceding 12 months. Its sales are seasonal: air conditioning replacement demand is typically highest in the second and third quarters.

Source: Watsco Q3 2026 results, October 27, 2026. Also in the Form 10-Q for the quarter ended September 30, 2026. Figures as reported; checked against the release on November 10, 2026.

How Watsco splits revenue in its own release, under its own labels, for Q3 2026 against Q3 2025. Indented lines are parts of the line above them.

• Watsco's United States revenue was $2.0 billion in Q3 2026, up 7% from $1.9 billion in Q3 2025, 91% of total revenue.
• Watsco's Canada revenue was $86.3 million in Q3 2026, down 2% from $87.8 million in Q3 2025, 4% of total revenue.
• Watsco's Latin America and the Caribbean revenue was $104 million in Q3 2026, up 15% from $90.8 million in Q3 2025, 5% of total revenue.

Segment lines are the figures writers cite most often, because they show where the growth in a quarter came from. Companies redraw their segments from time to time and restate the prior year to match, so a year-ago figure here can differ from the one printed a year ago. When that has happened, the note above says so.

Revenue and diluted EPS for the last 5 quarters. Each date links to that quarter's release.

Revenues and GAAP diluted EPS for Common and Class B common stock, each as first reported in that quarter's release. Watsco reports in thousands; figures here are in millions.

We do not hold a confirmed date for Watsco's next report. Companies post the date on their investor relations site a few weeks ahead, usually with the time of the conference call.

Each quarter keeps its own page with the figures as reported, so a link to one stays pointed at the same numbers after the next report.

• Q3 2026 (this page), reported Oct 27, 2026

Watsco is the largest distributor of HVAC/R equipment in North America and reports a single segment. At December 31, 2025 it operated from 695 locations serving more than 130,000 active contractors in the replacement and new construction markets, and its 2025 revenues were $7.2 billion. (Watsco Form 10-K, 2025, Feb 27, 2026)

Watsco's Q3 2026 revenues rose 7% to a record $2.22 billion. Excluding acquisitions, HVAC equipment was 67% of sales and grew 5%, other HVAC products were 29% and grew 2%, and commercial refrigeration products were 4% and grew 10%. Within equipment, residential products rose 7% and commercial products fell 5%, with commercial down 10% in U.S. markets. (Watsco Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026; Watsco Form 10-Q, Q3 2026, Nov 6, 2026)

Residential compressor-bearing systems showed a 5% increase in units and a 2% increase in average selling price. Watsco attributed the unit growth to stabilization of the HVAC equipment market after the 2025 transition to new A2L refrigerant products, and said same-store sales improved steadily through the selling season. (Watsco Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026; Watsco Form 10-Q, Q3 2026, Nov 6, 2026)

Same-store sales were $2,141.5 million, up 4%. The rest of the increase came from acquisitions: $77.8 million from locations acquired in the preceding 12 months, almost all of it Jackson Supply Company, which Watsco bought on June 1, 2026 for 517,884 shares of Common stock. By region, the 10-Q shows United States revenues of $2,029.8 million, Latin America and the Caribbean $104.3 million, and Canada $86.3 million, down from $87.8 million. (Watsco Form 10-Q, Q3 2026, Nov 6, 2026)

Watsco's supply is concentrated with one manufacturer. Purchases from Carrier and its affiliates were 62% of all inventory purchases in Q3 2026, against 61% a year earlier, and Watsco holds an 80% controlling interest in Carrier Enterprise I, one of its joint ventures with Carrier. Gross margin fell 110 basis points to 26.4%, which Watsco put down to customer mix, end-market mix, less impactful OEM pricing actions than in 2025, and the mix of equipment and non-equipment sales. (Watsco Form 10-Q, Q3 2026, Nov 6, 2026; Watsco Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026)

Watsco reports only GAAP earnings per share, with no adjusted figure. Diluted EPS for Common and Class B common stock fell 5% to $3.77 in Q3 2026 from $3.98. Operating income decreased 4% to $225 million and operating margin narrowed to 10.1% from 11.4%, as SG&A grew 8% to $370.7 million (5% on a same-store basis) on performance-based compensation, delivery and facilities costs and technology spending. (Watsco Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026; Watsco Form 10-Q, Q3 2026, Nov 6, 2026)

Two deductions sit between Watsco's net income of $182.8 million and its EPS. Net income attributable to non-controlling interest, mainly Carrier's share of the joint ventures, was $27.5 million, and earnings allocated to restricted common stock were $10.2 million. Diluted shares rose to 38,558,158 from 37,918,392, partly because of the shares issued for Jackson Supply. (Watsco Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026; Watsco Form 10-Q, Q3 2026, Nov 6, 2026)

The effective income tax rate was 23.0%, against 23.2% a year earlier. On October 15, 2026, 799,431 shares of Class B restricted stock granted to Watsco's CEO between 2011 and 2018 vested, and the 10-Q says the deduction for them will produce an income tax benefit and a lower effective tax rate. (Watsco Form 10-Q, Q3 2026, Nov 6, 2026)

Diluted EPS divides net income by the weighted average number of shares outstanding in the quarter, plus the shares that options and other equity awards could add. Buybacks shrink that count and lift EPS for the same profit; share issuance and stock awards enlarge it.

Watsco does not publish a revenue or earnings outlook in its release. For Q3 2026 it said same-store sales growth had improved through the season with further momentum thus far in the fourth quarter, and that Jackson Supply and The Granite Group added 107 locations and $730 million in annualized revenue, expected to bolster annual revenue by approximately 10%. (Watsco Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026)

The Granite Group, a distributor of HVAC and plumbing products with annual sales of about $500 million from 82 locations in the Northeast, was acquired on October 9, 2026 for $342.6 million in cash, net of cash acquired, plus 338,176 shares of Common stock. Watsco also raised its annual dividend by 10% to $13.20 per share in April 2026 and signed a $750 million revolving credit facility in October 2026. (Watsco Form 10-Q, Q3 2026, Nov 6, 2026; Watsco Q3 2026 release (Form 8-K, Exhibit 99.1), Oct 27, 2026)

A consensus figure is the average of the models published by the analysts who cover Watsco, collected by a data provider and revised up to the day of the report. A quarter that lands above it says how expectations were set as much as how the business did, and the share price on the day also reflects the guidance and the lines no consensus covers.

The consensus figures on this page are Yahoo Finance's, as pulled on the date shown. Each comes with the number of analysts behind it; the smaller that number, the more one revised estimate can move the average.

The figures below are the ones Watsco's own release and filings put weight on for Q3 2026, with the latest reported value for each.

What the quarter means for a holding is a separate question from what it reported. The case for and against owning WSO is on is WSO a buy or a sell?, what analysts expect next is on the WSO forecast, and what the company does is on the Watsco (WSO) stock page.

Every number on this page can be traced to a document Watsco published. Checking one takes a couple of minutes, and it is worth doing before you quote a figure anywhere.

• The results release is the document linked in the source line above. Companies publish it on their investor relations site at the moment results go out, and it carries the headline tables: revenue, operating income, net income and EPS for the quarter and the year-ago quarter.
• The same release is filed with the SEC as Exhibit 99.1 to a Form 8-K under Item 2.02, usually on the day of the report. The SEC copy does not change after the fact, which makes it the safer thing to link when you cite a number.
• The quarterly report (Form 10-Q) follows within a few weeks and carries the full financial statements, the segment note and management's discussion of what changed. The fourth quarter is covered by the annual report (Form 10-K) instead.
• Restated comparisons are flagged in the notes on this page. When a company redraws its segments or changes how it adjusts EPS, it restates the year-ago column, so the year-ago figure in a new release can differ from the one printed a year ago. This page always uses the comparison in the newer release, because that is the like-for-like one.

A walk-through of every line in a release, with what each one tells you, is in how to read an earnings report.