Watsco (WSO) Stock Slips After Q3 Results Put Margins In Focus

Watsco just posted its Q3 2026 report with record quarterly sales of US$2.22b and basic earnings per share of US$4.03. The stock slipped about 1.4% to roughly US$301, extending a soft three month stretch, even as the business reported higher revenue and net income than a year ago. The focus is on margins. A 26.4% gross margin and 10.1% operating margin arrived in a market that had been paying a premium P/E for this distributor. Today’s price dip appears to reflect a shift in sentiment around...