WD-40 Company (WDFC) Q3 2026 earnings summary

Executive summary

• Net sales rose 24% year-over-year to $195.1 million in Q3 FY26, with double-digit growth across all regions and product lines, and maintenance products representing 97% of total sales.

• Operating income increased 47% to $40.3 million, and net income grew 44% to $30.2 million; adjusted net income was $31.5 million, up 50%.

• Adjusted EPS rose 51% to $2.33, and diluted EPS was $2.24, up 45% year-over-year.

• Growth was broad-based, driven by strong U.S. and Latin America performance, high-impact promotions, and favorable currency impacts.

• Leadership transition and strategic focus on geographic expansion, premiumization, Specialist product growth, and digital commerce.

Financial highlights

• Gross margin improved by 40 bps to 56.6% in Q3 FY26, aided by lower aerosol can costs and favorable sales mix.

• Adjusted EBITDA margin rose to 23% from 20% last year; cost of doing business decreased to 34% of net sales.

• Net income for Q3 FY26 was $30.2 million, up 44% year-over-year; adjusted net income was $31.5 million, up 50%.

• Advertising and promotional investment increased to 6.1% of net sales.

• Foreign currency translation favorably impacted net sales by $7.3 million.

Outlook and guidance

• Fiscal 2026 net sales expected at $652–$667 million constant currency (6%-9% growth) and $675–$690 million reported (10%-12% growth).

• Gross margin guidance revised to 54.5%-55.5% due to cost pressures and product reclassification.

• Non-GAAP operating income expected at $107–$113 million (5%-11% growth); non-GAAP EPS at $6.05–$6.35 (6%-11% growth).

• Most benefit from pricing and cost-saving actions expected in fiscal 2027.

• Guidance excludes a $1.3 million one-time amortization expense and is based on constant currency assumptions.