Ferguson Q2 Sales Rise 4.6% to $8.75B, EPS Beats; Full-Year Guidance Raised
FERG sits 27% above its 52-week low of $207.64.
Summary
Ferguson's Q2 results beat expectations on both the top and bottom lines, and management raised full-year guidance. The quarter also saw a new $2B buyback authorization and preparations for the $1.6B FloWorks acquisition.
Key Events · Earnings and Guidance · FERG
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Q2 Earnings Beat
Net sales of $8.75B (+4.6% YoY) and adjusted diluted EPS of $3.39 exceeded consensus estimates of $8.67B and $3.29, respectively.
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Full-Year Guidance Raised
Management increased its full-year outlook, citing strength in non-residential markets and effective price management.
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$2B Share Buyback Authorized
On April 30, 2026, the Board replaced the prior program with a new $2 billion repurchase authorization; $136M had been executed through June 30.
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FloWorks Acquisition on Track
The $1.6B acquisition of FloWorks, announced July 13, is expected to close in Q3 2026, funded by cash and committed financing.
Analysis · FERG · Trade & Services
A clean beat in the second quarter underscores Ferguson's momentum, with sales climbing 4.6% to $8.75 billion and adjusted diluted EPS of $3.39 topping consensus by $0.10. Confidence in non-residential demand and price realization prompted management to raise the full-year outlook. Meanwhile, the balance sheet is being actively managed — a new $2 billion buyback program was authorized, and total debt rose to $4.9 billion ahead of the $1.6 billion FloWorks acquisition expected to close next quarter. The combination of strong operating momentum and a major pending deal makes this a pivotal quarter for the investment thesis.
At the time of this filing, FERG was trading at $264.64 on NYSE in the Trade & Services sector, with a market capitalization of approximately $51.3B. The 52-week trading range was $207.64 to $271.64. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.