Filing Flows › Watsco (WSO) › Q3 2026
Watsco (WSO) Q3 2026 earnings results (third quarter 2026)
10-Q filed Nov 6, 2026
Watsco (WSO) reported revenue of $2.2B for the third quarter 2026 (Q3 2026), +7% from a year earlier and +5% from the quarter before. Operating margin was 10.1%, net earnings $155M (7.0% of revenue).
Watsco, Q3 2026: revenue $2.2B (+7% year over year), operating margin 10.1%, net earnings $155M, operating cash flow $325M. The chart follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.2B | +5% | +7% |
| Gross profit | $586M | +1% | +3% |
| Operating profit | $225M | -6% | -4% |
| Net earnings | $155M | -5% | -4% |
| Operating cash flow | $325M | — | -8% |
| Free cash flow | $315M | — | -9% |
What changed
Revenue was $2.2B in Q3 2026, up 7% year over year and up 5% from the previous quarter.
Gross margin was 26.4%, down 1.1 points from Q3 2025. Operating profit was $0.23B, a 10.1% margin (down 1.2 points year over year). Operating profit fell $0.01B even though revenue rose $0.15B versus Q3 2025, so costs grew faster than sales. Operating expenses grew 8% against revenue growth of 7%. Net earnings were $0.16B, down 4% year over year. The effective tax rate was 20.4%.
Operating cash flow was $0.33B (down 8% year over year), 178% of net income including minority interests. Non-cash charges added back $0.01B of depreciation and amortization and $0.01B of share-based compensation. Working capital and other items added $0.12B. Capital expenditures of $0.01B left free cash flow of $0.32B.
Questions
What was Watsco's revenue in the third quarter 2026?
Watsco (WSO) reported revenue of $2.2B for the third quarter 2026 (Q3 2026), +7% from a year earlier and +5% from the quarter before.
Was Watsco profitable in the third quarter 2026?
Operating profit was $225M (10.1% of revenue) and net earnings $155M.
Source: Watsco 10-Q on SEC EDGAR.