Filing Flows › Watsco (WSO) › How it makes money
How Watsco (WSO) makes money
Watsco (WSO) made $2.2B of revenue in the third quarter 2026 (Q3 2026), +7% from a year earlier. Of every dollar of revenue, 26¢ was left as gross profit, 10¢ was left as operating profit, 7¢ was left as net earnings.
Drawing the Sankey…
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $2.2B | 100.0% |
| Cost of revenue | $1.6B | 73.6% |
| Gross profit | $586M | 26.4% |
| Operating expenses | $361M | 16.3% |
| Operating profit | $225M | 10.1% |
| Income tax | $47.0M | 2.1% |
| Net earnings | $155M | 7.0% |
| Operating cash flow | $325M | 14.6% |
| Free cash flow | $315M | 14.2% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $2.2B | +7% |
| Q2 2026 | $2.1B | +2% |
| Q1 2026 | $1.5B | +0.1% |
| Q4 2025 | $1.6B | -10% |
| Q3 2025 | $2.1B | -4% |
| Q2 2025 | $2.1B | -4% |
| Q1 2025 | $1.5B | -2% |
From Watsco's 10-Q filed Nov 6, 2026 (on EDGAR).
Questions
How does Watsco make money?
Watsco (WSO) made $2.2B of revenue in the third quarter 2026 (Q3 2026), +7% from a year earlier. Of every dollar of revenue, 26¢ was left as gross profit, 10¢ was left as operating profit, 7¢ was left as net earnings.
What is Watsco's profit margin?
Net earnings were $155M, 7.0% of revenue, in the third quarter 2026; the operating margin was 10.1%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.