WD-40 (WDFC) Earnings Date & Reports

Key Takeaways

• WD-40 Company (WDFC) reported fiscal fourth quarter 2026 net sales of $176.8 million, an 8.1% year-over-year increase that topped analyst estimates of roughly $172 million.
• Diluted earnings per share (EPS) came in at $1.06, below the consensus estimate of approximately $1.13 as higher input costs and increased spending weighed on profitability.
• Full-year fiscal 2026 net sales rose 11% to $688.0 million, with full-year EPS of $6.08 on net income of $82.3 million.
• Management guided to fiscal 2027 EPS of $6.40 to $6.70 on net sales of $715 million to $735 million, reflecting 5% to 10% growth.
• Gross margin pressure from specialty chemicals and other inputs was flagged as a key factor, though the company expects sequential improvement beginning in the first quarter of fiscal 2027.

Earnings Context and Why It Matters

WD-40 Company, the San Diego-based maker of the iconic WD-40 Multi-Use Product and a portfolio of maintenance and homecare brands, operates on a fiscal year ending August 31. Its fourth quarter and full fiscal year 2026 results, released on October 21, 2026, closed out a year in which the business navigated volatile input costs, currency swings, and ongoing investment in its brands and people. Because WD-40's products are sold in more than 176 countries and territories, this report offers investors a useful read on global consumer demand, supply-chain execution, and margin durability for a widely recognized consumer staples franchise.

Reported Results

For the three months ended August 31, 2026, WD-40 posted net sales of $176.8 million, up 8.1% from $163.5 million in the prior-year period and ahead of the roughly $172 million Wall Street had expected. The top-line beat reflected continued strength in maintenance products, which management said grew at the top of the company's long-term target range.

Profitability, however, came in lighter than anticipated. Diluted EPS was $1.06, missing the consensus estimate of approximately $1.13 by about $0.08. Gross margin was pressured by higher costs for specialty chemicals and other inputs, while selling, general and administrative (SG&A) expenses rose due to performance-based incentive compensation and elevated freight costs. Higher advertising and sales promotion spending also supported revenue growth but trimmed near-term earnings.

For the full fiscal year, net sales reached $688.0 million, an 11% increase over $620.0 million in fiscal 2025. Full-year net income was $82.3 million, or $6.08 per diluted share.

Looking ahead, the company issued fiscal 2027 guidance calling for net sales between $715 million and $735 million on a constant-currency basis, gross margin of 54.0% to 55.5%, operating income of $114 million to $120 million, and diluted EPS of $6.40 to $6.70 based on an estimated 13.4 million weighted average shares outstanding.

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Market Reaction and Investor Sentiment

Heading into the release, sentiment around WD-40 had cooled, with the stock down roughly 17% over the three months preceding earnings amid concerns about input-cost inflation and softer near-term margins. The fourth quarter report reinforced that narrative: revenue beat expectations, but the EPS shortfall, driven by higher specialty chemical costs and increased spending, underscored the margin pressure investors had been watching. The stock traded near $192 following the results, reflecting a relatively muted initial reaction as the top-line strength and in-line full-year guidance were weighed against the earnings miss.

Forward Outlook and Key Factors to Monitor

Management signaled that the fourth quarter of fiscal 2026 likely marked the low point for gross margin, with sequential improvement expected to begin in the first quarter of fiscal 2027. Investors will be watching whether that recovery materializes, particularly given the guidance's assumption that crude oil prices remain near current levels through the first half of fiscal 2027 before moderating.

Input costs for specialty chemicals and freight remain the central swing factors for profitability. Because raw-material expenses feed directly into gross margin, any sustained rise in energy or chemical prices could delay the anticipated margin rebound.

On the demand side, continued strength in maintenance products and the company's ability to sustain advertising and promotion investments of roughly 6% of net sales will be key to supporting revenue growth within the projected 4% to 7% range. Currency movements and the performance of international markets across more than 176 countries and territories also remain important variables to monitor.

Finally, investors should track progress against the company's fiscal 2027 targets for operating income growth of 5% to 10% and diluted EPS of $6.40 to $6.70, as these figures will test whether WD-40 can convert its resilient sales growth into expanding profitability as cost pressures ease.

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