WD-40 Co. Posts Strong Q3 Profit and Sales Growth, Exceeding Expectations

WD-40 Company (NASDAQ: WDFC) announced robust financial results for its third fiscal quarter ended May 31, 2026, significantly surpassing market expectations. The company reported total net sales of $195.1 million, a 24% increase year-over-year, and net income of $30.2 million, marking a 44% rise from the prior year. This performance underscores the strong demand within the global maintenance products market.

Diluted earnings per share (EPS) surged to $2.24 from $1.54 in the same period last year, representing a remarkable 45% increase. This figure comfortably beat analyst estimates, which ranged between $1.57 and $1.59. Excluding a one-time amortization catch-up expense of $1.3 million, adjusted diluted EPS stood at $2.33, further exceeding expectations. The gross margin also improved to 56.6% from 56.2% in the prior fiscal quarter, signaling enhanced profitability. Operating income increased by 47% to $40.3 million.

The strong quarterly performance of WD-40 was positively received in the stock market, with the company's shares experiencing a rise in after-hours trading following the announcement. This growth was particularly driven by double-digit sales increases across all three of the company's trade blocs: Americas (up 29%), EIMEA (Europe, Middle East, and Africa, up 17%), and Asia-Pacific (up 24%). Sales of maintenance products, which constitute 97% of net sales, saw an impressive 26% year-over-year increase.

WD-40 Company is recognized as a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories, and homes worldwide. While the company made a decision to reclassify certain homecare and cleaning brands in the Americas, it maintained strong momentum in its core maintenance product portfolio. This strategic focus helps solidify the company's market leadership in its primary product categories.

Management also provided updated guidance for fiscal year 2026. Net sales, excluding the impact of foreign currency fluctuations, are projected to be between $652 million and $667 million, with reported net sales expected to be between $675 million and $690 million. The adjusted EPS guidance is set between $6.05 and $6.35, which is above the analyst consensus estimate of $5.99. This positive outlook suggests that the company is well-positioned to sustain its consistent growth trajectory in the upcoming period.