Filing Flows › Watsco (WSO) › Q3 2026 › vs Q2 2026
Watsco (WSO) Q3 2026 vs Q2 2026 (quarter over quarter)
Watsco's revenue rose $115M (+5%) from $2.1B in Q2 2026 to $2.2B in Q3 2026. Gross margin 26.4% against 27.5% (-1.1 pts).
Watsco, Q3 2026: revenue $2.2B (+7% year over year), operating margin 10.1%, net earnings $155M, operating cash flow $325M. The chart draws each line against Q2 2026, the increases inside each band.
Margins
| Q3 2026 | Q2 2026 | Change | |
|---|---|---|---|
| Gross margin | 26.4% | 27.5% | -1.1 pts |
| Operating margin | 10.1% | 11.3% | -1.2 pts |
| Net margin | 7.0% | 7.8% | -0.8 pts |
| Free cash flow margin | 14.2% | -0.5% | +14.8 pts |
Every line
| Line | Q3 2026 | Q2 2026 | Change | % |
|---|---|---|---|---|
| Revenue | $2.2B | $2.1B | $115M | +5% |
| Gross profit | $586M | $579M | $7.4M | +1% |
| Cost of revenue | $1.6B | $1.5B | $108M | +7% |
| Operating profit | $225M | $238M | −$13.2M | -6% |
| Operating expenses | $361M | $341M | $20.5M | +6% |
| Pre-tax earnings | $230M | $242M | −$12.1M | -5% |
| Net earnings | $155M | $163M | −$8.0M | -5% |
| Minority interests | $27.5M | $28.0M | −$492K | -2% |
| Income tax | $47.0M | $50.6M | −$3.6M | -7% |
| Depreciation & amortization | $12.0M | $10.9M | $1.1M | +10% |
| Share-based compensation | $9.1M | $8.6M | $481K | +6% |
| Working capital & other | $149M | −$185M | $334M | — |
| Operating cash flow | $325M | −$2.5M | $328M | — |
| Free cash flow (OCF − capex) | $315M | −$11.5M | $327M | — |
| Capital expenditures | $9.7M | $9.0M | $746K | +8% |
Questions
How much did Watsco's revenue grow quarter over quarter in Q3 2026?
Watsco's revenue rose $115M (+5%) from $2.1B in Q2 2026 to $2.2B in Q3 2026. Gross margin 26.4% against 27.5% (-1.1 pts).