Watsco, Inc.
WSO · NYSE
WSO · NYSE
Watsco distributes heating, ventilation, air-conditioning and refrigeration equipment, parts and supplies, primarily serving contractors and other HVAC/R industry customers. It makes money by selling these products through its distribution business; the supplied evidence does not give a segment breakdown or segment-level contributions. Watsco reported FY2025 revenue of $7.2 billion and net income of $0.6 billion, compared with $7.6 billion of revenue and $0.6 billion of net income in FY2024. In the third quarter of 2026, revenue reached a record $2.22 billion, including 4% same-store growth.
Watsco fell 7.35%, from $327.04 to $303.00, over the supplied comparison period. The decline was concentrated in the first three sessions: the shares closed at $305.33 on Monday, $301.04 on Tuesday and a weekly low of $290.83 on Wednesday, before recovering to $303.00 on Thursday. The main company-specific catalyst was the third-quarter report: revenue reached a record $2.22 billion, up 7%, but EPS missed estimates by 8.72% and profit fell year over year. Revenue beat estimates by just 0.28%, offering little offset to the earnings shortfall. Thursday's rebound recovered part of the three-day slide, but left the stock well below its prior close.
