Ferguson Beats Estimates, Raises Sales Outlook

The distributor posted quarterly sales growth driven by acquisitions and strong nonresidential demand, and lifted its fiscal 2026 forecast.

Updated on Nov. 10, 2026 in Corporate Finance

Bold flat-color vector editorial illustration of stacked pipe and copper tubing bundles in an open distribution yard beneath a crane arm, in slate, steel blue, and copper tones. — Ferguson Enterprises reported third-quarter adjusted earnings of $3.43 per share and raised its fiscal 2026 sales growth forecast to about 7%. AI Illustration. Upload story photo >

Ferguson Enterprises reported third-quarter adjusted earnings of $3.43 per share, above the $3.30 analyst estimate. Sales rose 9.5% year over year to $9.03 billion, topping the $8.74 billion consensus, and the company raised its fiscal 2026 net sales growth forecast to about 7%.

Why it matters

The results show continued demand across the company's residential and nonresidential customer base, with acquisitions contributing a meaningful share of growth. Management's plan to resume share buybacks as leverage falls toward its target range signals how it intends to deploy capital going forward.

Gross margin fell 40 basis points to 30.9% while adjusted operating margin held flat at 10.7%, and the company invested $1.7 billion in acquisitions including FloWorks. Net debt stood at 1.7 times adjusted EBITDA at quarter end, within its targeted 1-2 times range, though the filing does not detail the timing of future acquisition spending.

The players

Ferguson Enterprises

Ferguson Enterprises is a large North American distributor of plumbing, HVAC and related products to residential and commercial contractors, operating Industrial and Waterworks businesses.

The details

Growth came from 7.0% organic expansion and 2.7% from acquisitions, with U.S. net sales up 10.2% and Canadian sales down 4.5%. Residential revenue rose 6% while nonresidential revenue climbed 15%, supported by market share gains and strong bidding activity.

Sept. 30: Quarter end, when net debt to adjusted EBITDA was measured at 1.7 times.
Aug. 31: FloWorks acquisition completed.
Nov. 20: Shareholder-of-record date for the quarterly dividend.
Jan. 8: Quarterly dividend of 89 cents payable.

Market Landscape

Ferguson's growth mix, with 2.7 points from acquisitions layered on organic gains, reflects an industry pattern of consolidating smaller regional distributors. Nonresidential strength is offsetting residential softness, which positions the company to benefit from large-project activity relative to competitors more exposed to housing.

Investors tracking Ferguson can watch whether buybacks resume once leverage nears the lower end of the company's 1-2 times target range. The company's dividend of 89 cents per share, with a November record date and January payment, is the most immediate shareholder cash flow in the filing.

The takeaway

Ferguson's quarter shows acquisitions and nonresidential demand can outweigh softness elsewhere, and the buyback timeline will indicate how management weighs growth spending against returning cash to shareholders.