Filing Flows › Watsco (WSO) › Q2 2026
Watsco (WSO) Q2 2026 earnings results (second quarter 2026)
10-Q filed Aug 7, 2026
Watsco (WSO) reported revenue of $2.1B for the second quarter 2026 (Q2 2026), +2% from a year earlier and +37% from the quarter before. Operating margin was 11.3%, net earnings $163M (7.8% of revenue).
Watsco, Q2 2026: revenue $2.1B (+2% year over year), operating margin 11.3%, net earnings $163M, operating cash flow −$2.5M. The chart follows the revenue to costs, profit and cash.
| Q2 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.1B | +37% | +2% |
| Gross profit | $579M | +35% | -4% |
| Operating profit | $238M | +116% | -12% |
| Net earnings | $163M | +107% | -11% |
| Operating cash flow | −$2.5M | — | — |
What changed
Revenue was $2.1B in Q2 2026, up 2% year over year and up 37% from the previous quarter.
Gross margin was 27.5%, down 1.8 points from Q2 2025. Operating profit was $0.24B, a 11.3% margin (down 1.9 points year over year). Operating profit fell $0.03B even though revenue rose $0.04B versus Q2 2025, so costs grew faster than sales. Operating expenses grew 3% against revenue growth of 2%. Net earnings were $0.16B, down 11% year over year. The effective tax rate was 20.9%.
Operating cash flow was −$2.5M. Non-cash charges added back $0.01B of depreciation and amortization and $0.01B of share-based compensation. Working capital and other items used $0.21B. Capital expenditures of $0.01B exceeded it, leaving free cash flow of −$0.01B.
Questions
What was Watsco's revenue in the second quarter 2026?
Watsco (WSO) reported revenue of $2.1B for the second quarter 2026 (Q2 2026), +2% from a year earlier and +37% from the quarter before.
Was Watsco profitable in the second quarter 2026?
Operating profit was $238M (11.3% of revenue) and net earnings $163M.
Source: Watsco 10-Q on SEC EDGAR.