Filing Flows › Watsco (WSO) › Q1 2026
Watsco (WSO) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 8, 2026
Watsco (WSO) reported revenue of $1.5B for the first quarter 2026 (Q1 2026), +0.1% from a year earlier and -3% from the quarter before. Operating margin was 7.2%, net earnings $79.1M (5.2% of revenue).
Watsco, Q1 2026: revenue $1.5B (+0.1% year over year), operating margin 7.2%, net earnings $79.1M, operating cash flow −$18.9M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.5B | -3% | +0.1% |
| Gross profit | $428M | -0.2% | -0.5% |
| Operating profit | $110M | +9% | -2% |
| Net earnings | $79.1M | +10% | -1% |
| Operating cash flow | −$18.9M | -105% | — |
What changed
Revenue was $1.5B in Q1 2026, roughly flat year over year and down 3% from the previous quarter.
Gross margin was 27.9%, down 0.2 points from Q1 2025. Operating profit was $0.11B, a 7.2% margin (down 0.1 points year over year). Operating profit fell $2.0M even though revenue rose $1.9M versus Q1 2025, so costs grew faster than sales. Operating expenses fell 0% while revenue was flat. Net earnings were $0.08B, down 1% year over year. The effective tax rate was 20.3%.
Operating cash flow was −$0.02B. Non-cash charges added back $0.01B of depreciation and amortization and $0.01B of share-based compensation. Working capital and other items used $0.13B. Capital expenditures of $0.01B exceeded it, leaving free cash flow of −$0.03B.
Questions
What was Watsco's revenue in the first quarter 2026?
Watsco (WSO) reported revenue of $1.5B for the first quarter 2026 (Q1 2026), +0.1% from a year earlier and -3% from the quarter before.
Was Watsco profitable in the first quarter 2026?
Operating profit was $110M (7.2% of revenue) and net earnings $79.1M.
Source: Watsco 10-Q on SEC EDGAR.