Key Highlights
- Ferguson delivered adjusted earnings per share of $3.39, surpassing the Street consensus of $3.30
- Revenue climbed 4.6% year-over-year to $8.75 billion, exceeding analyst projections of $8.68 billion
- Company raised full-year sales outlook to mid-single digit expansion from prior low to mid-single digit forecast
- Non-residential segment posted 8% revenue growth in the quarter; residential segment returned to positive territory
- Five acquisitions closed during Q2, with FloWorks purchase agreement signed post-quarter
Shares of Ferguson Enterprises climbed 1.3% to approximately $260 in early Monday trading after the company reported better-than-expected second-quarter results and elevated its full-year outlook.
The company posted adjusted earnings per share of $3.39, marking an increase from $3.22 in the same period last year and topping the analyst consensus estimate of $3.30. Revenue advanced 4.6% to reach $8.75 billion, exceeding Wall Street’s forecast of $8.68 billion.
Organic revenue growth in Ferguson’s US operations reached 4% during the quarter, with an additional 1% contribution from completed acquisitions.
Chief Executive Officer Kevin Murphy highlighted that Ferguson achieved “market outperformance” during the period and successfully returned its residential business to growth territory despite facing a “challenging market backdrop.”
šØ Ferguson Enterprises $FERG Q2 2026 Earnings
Steady growth + raised guidanceā¦
with active M&A and continued capital returns šš KEY METRICS (Q2 2026)
š¹ Net Sales: $8.8B (+4.6% YoY) š¢
āā¢ Organic: +3.8%
āā¢ Acquisitions: +1.0%
š¹ Operating Profit: $893Mā¦ā Emmanuel ā Big Tech & AI Investor (@EmmanuelInvest) August 10, 2026
The residential segment, representing approximately half of Ferguson’s total revenue, continued to face headwinds. New home construction remained sluggish, while repair and maintenance demand showed limited momentum.
Non-Residential Segment Powers Performance
The non-residential business emerged as the quarter’s star performer, posting an 8% revenue increase. Activity in large capital projects remained robust, characterized by expanding open order volumes and vigorous bidding dynamics.
Gross margin registered at 31.0%, representing a 20 basis point decline versus the prior year. Management attributed the year-over-year comparison to temporarily elevated margins in the prior period due to the timing of supplier pricing adjustments.
Reported diluted earnings per share reached $3.43, marking a 6.9% year-over-year improvement. Adjusted EBITDA totaled $994 million for the quarter, up 3.2%.
Outlook Enhanced, M&A Activity Persists
Ferguson elevated its full-year net sales guidance to mid-single digit growth from its previous forecast of low to mid-single digit expansion. The company also refined its adjusted operating margin guidance to a range of 9.5% to 9.8%, narrowing from the prior 9.4% to 9.8% band.
Capital expenditure expectations were also increased, now projected at $375 million to $425 million versus the previous $350 million to $400 million range.
During the quarter, Ferguson finalized five acquisitions, including Carrier Great Lakes, Dealers Supply Company, and PRD Technologies Group. These transactions expanded the company’s capabilities in HVAC, waterworks, and industrial valve sectors across various US markets.
Following quarter-end, Ferguson entered into a definitive agreement to purchase FWI Holdings, operating as FloWorks, a specialized provider of technical valves and flow control products. The transaction is anticipated to close in the third quarter. Combined annualized revenue from all eight acquisitions announced throughout the current fiscal year totals roughly $1.4 billion.
Ferguson also terminated its secondary listing on the London Stock Exchange, effective July 20, 2026.
A quarterly dividend of $0.89 per share was declared, scheduled for payment on October 7, 2026, to shareholders of record as of August 21, 2026.
FERG joined the S&P 500 index last week, taking the place of Electronic Arts. The stock has appreciated more than 15% since the start of the year, outperforming the broader market benchmark.
Current Wall Street consensus estimates project full-year 2026 revenue of $32.74 billion, translating to 4.6% growth compared to 2025 levels.
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