Ferguson Q3 2026 earnings review

Adjusted EPS rose 7.9% to $3.43, and Ferguson raised its 2026 sales growth guide to about 7%.

Ferguson Enterprises Inc. · Q3 2026 · Published Nov 9, 2026 · By DeepCell AI · Sources

Ferguson Q3 2026 earnings review

Quarter ended September 30, 2026 · NYSE: FERG

For information only, not investment advice. No rating or price target.

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1 · Ferguson (FERG) Q3 2026 earnings review

Adjusted EPS rose 7.9% to $3.43, and Ferguson raised its 2026 sales growth guide to about 7%

  1. 1.Adjusted EPS beat the Benzinga consensus of $3.30, and net sales beat by 3.3%
  2. 2.Net sales rose 9.5% to $9,026M, with organic growth of 7.0%
  3. 3.Gross margin fell to 30.9% from 31.3%; GAAP diluted EPS fell 4.9%
  4. 4.FloWorks closed on Aug 31; net debt rose to $5,695M, 1.7x adjusted EBITDA
  5. 5.No pre-market trade had been shown by 9:09 AM ET; see the results table

Note: Adjusted EPS, adjusted operating profit and adjusted EBITDA are company non-GAAP measures.Source: Ferguson news release, Nov 9, 2026; Benzinga, Nov 9, 2026; CNBC quote, Nov 9, 2026, 9:09 AM ET; analysis of company data

2

2 · Executive summary

Adjusted EPS of $3.43 beat the Benzinga consensus by 3.9%, and net sales beat by 3.3%

Q3 2026 results vs. consensus

MetricActualConsensusVarianceResult
Adjusted EPS vs. Benzinga$3.43$3.30+$0.13 / +3.9%Beat
Net sales vs. Benzinga$9,026M$8,740M+$286M / +3.3%Beat

Share price after the Nov 9 release (CNBC)

MeasureNov 6 closeNov 9 pre-market, as of 9:09 AM ETChange vs. Nov 6 close
Ferguson (NYSE: FERG)$233.70No trade shownNot available

Note: CNBC showed no FERG pre-market trade as of 9:09 AM ET, and Benzinga reported none at 8:13 AM ET, so no reaction is shown. Seeking Alpha also reported beats on EPS and sales.Source: Ferguson news release, Nov 9, 2026; Benzinga, Nov 9, 2026; CNBC quote, Nov 9, 2026, 9:09 AM ET; analysis of company data

3

3 · Q3 results vs. consensus

Ferguson raised its 2026 sales growth guide to about 7% and the low end of its margin range to 9.6%

Calendar 2026 guidance: prior vs. updated

MetricPrior guidanceUpdated guidanceChange
Net sales growthMid-single digitAbout 7%Raised
Adjusted operating margin9.5%–9.8%9.6%–9.8%Low end raised
Interest expenseAbout $200MAbout $235MRaised
Capital expenditures$375M–$425MAbout $425MTop of range

Nine months 2026 vs. updated guidance

MetricNine months 2026Updated guidanceImplied Q4
Net sales growth6.0%About 7%Faster growth
Adjusted operating margin10.1%9.6%–9.8%Lower margin
Interest expense$161MAbout $235MAbout $74M
Capital expenditures$342MAbout $425MAbout $83M

Note: Updated guidance includes FloWorks. Implied Q4 is guidance less nine-month results (DeepCell calculation).Source: Ferguson news release, Nov 9, 2026; analysis of company data

4

4 · 2026 guidance

Net sales rose 9.5% while net income fell 6.3% to $598M on a higher tax charge

  1. Non-residential ledUS non-residential sales rose 15%; residential rose 6%.
  2. Adjusted profit roseAdjusted operating profit rose 8.9% to $962M.
  3. Tax lifted the gapIncome tax rose to $207M from $153M.

Key figures in $M for Q3 2026 vs. Q3 2025

$M unless notedQ3 2025Q3 2026YoY
Net sales$8,245M$9,026M9.5%
Adjusted operating profit$883M$962M8.9%
Operating profit$844M$885M4.9%
Net income$638M$598M(6.3%)
Adjusted diluted EPS ($)$3.18$3.437.9%

Note: The prior-year quarter included larger discrete tax benefits. EPS figures are diluted.Source: Ferguson news release, Nov 9, 2026; analysis of company data

5

5 · Q3 key financials

US adjusted operating profit rose 8.8% to $952M; Canada sales fell 4.5%

Net sales and adjusted operating profit by segment

$M, Q3 2025 vs. Q3 2026

SegmentQ3 2025Q3 2026YoY
US net sales$7,821M$8,621M10.2%
Canada net sales$424M$405M(4.5%)
US adjusted operating profit$875M$952M8.8%
Canada adjusted operating profit$22M$23M4.5%
Central and other costs($14M)($13M)—
US organic growth was 7.4%, plus 2.8% from acquisitions“Our expert associates delivered strong third quarter results, with non-residential sales up 15% and residential growth of 6%.” Kevin Murphy, CEO

Note: Residential end markets are about half of US sales. Canada faced divestments and a weaker Canadian dollar.Source: Ferguson news release, Nov 9, 2026; analysis of company data

6

6 · Segment results

7 · Adjusted operating profit bridge

8 · Net sales by segment

Amortization of $50M and FloWorks costs of $25M lifted adjusted operating profit above operating profit

Operating profit to adjusted operating profit

$M, Q3 2026

$M · Operating profit: $885M$M · Restructuring: $2M$M · FloWorks costs: $25M$M · Amortization: $50M$M · Adjusted operating profit: $962MOperating profitRestructuringFloWorks costsAmortizationAdjustedoperating profit$0M$250M$500M$750M$1,000M$1,200M$885M$2M$25M$50M$962M
Operating profit rose 4.9% to $885M

Note: Amortization is of acquired intangibles. FloWorks costs are acquisition and integration costs.Source: Ferguson news release, Nov 9, 2026; analysis of company data

9

9 · Adjusted operating profit reconciliation

Gross margin fell to 30.9% from 31.3% as prior-year supplier price increases faded

Margins

% of net sales, Q3 2025 vs. Q3 2026

Gross margin · Q3 2025: 31.3%Gross margin · Q3 2026: 30.9%Adjusted operating margin · Q3 2025: 10.7%Adjusted operating margin · Q3 2026: 10.7%Operating margin · Q3 2025: 10.2%Operating margin · Q3 2026: 9.8%Q3 2025Q3 20260.0%10.0%20.0%35.0%31.3%30.9%10.7%10.7%10.2%9.8%

Gross marginAdjusted operating marginOperating margin

Operating margin fell to 9.8% from 10.2%; adjusted margin was 10.7%

Note: Margins are each profit measure divided by net sales (DeepCell calculation). Ferguson reports adjusted operating margin flat at 10.7%.Source: Ferguson news release, Nov 9, 2026; analysis of company data

10

10 · Margin analysis

Nine-month operating cash flow fell 21.9% to $1,472M as receivables rose

Net income to operating cash flow

$M, nine months 2026

$M · Net income: $1,678M$M · Depreciation: $312M$M · Share-based pay: $65M$M · Inventories: -$308M$M · Receivables: -$1,142M$M · Payables: $931M$M · Other: -$64M$M · Operating cash flow: $1,472MNet incomeDepreciati…Share-basedpayInventoriesReceivablesPayablesOtherOperatingcash flow$0M$500M$1,000M$1,500M$2,000M$2,500M$1,678M$312M$65M-$308M-$1,142M$931M-$64M$1,472M
Higher receivables used $1,142M of cash in nine months

Note: Nine months ended Sep 30, 2026. Ferguson does not report quarterly cash flow in the release.Source: Ferguson news release, Nov 9, 2026; analysis of company data

11

11 · Nine-month cash flow

Ferguson spent $2,257M on acquisitions in nine months, largely funded by new debt

Uses and sources of cash, nine months

$M

ItemNine months 2025Nine months 2026
Acquisitions, net of cash acquired$276M$2,257M
Capital expenditures$247M$342M
Share repurchases$611M$438M
Dividends paid$493M$519M
Net change in debt($199M)$2,044M
Buybacks are paused after FloWorks; the quarterly dividend is $0.89 per share

Note: Ferguson expects to resume buybacks as net debt to adjusted EBITDA trends toward the low end of its 1–2x target.Source: Ferguson news release, Nov 9, 2026; analysis of company data

12

12 · Capital deployment

Long-term debt rose to $5,571M from $3,978M after the FloWorks acquisition

Selected balance sheet items

$M

ItemDec 31, 2025Sep 30, 2026
Cash and cash equivalents$557M$476M
Accounts receivable, net$3,312M$4,455M
Inventories$4,588M$5,215M
Goodwill$2,470M$3,375M
Long-term debt$3,978M$5,571M
Total stockholders equity$5,857M$6,659M
Net debt to adjusted EBITDA rose to 1.7x from 1.0x a year earlier

Note: Net debt was $5,695M at Sep 30, 2026, including $599M of short-term debt. Leverage uses 12-month adjusted EBITDA.Source: Ferguson news release, Nov 9, 2026; analysis of company data

13

13 · Balance sheet and leverage

Residential demand and leverage of 1.7x are the main watch points for the raised guidance

Indicator
What to watch
Implication
Q3 reading
Residential demand
US sales growth
Weak new building and repair work
Residential up 6%
Leverage
Buyback restart
Target 1–2x net debt to EBITDA
1.7x at Sep 30
Gross margin
Operating margin
Supplier price timing
30.9% vs. 31.3%
FloWorks integration
Costs and interest
Integration costs and debt
Interest $64M, 36.2% YoY

Note: Watch points are analytical, not company targets. EBITDA here is adjusted EBITDA.Source: Ferguson news release, Nov 9, 2026; analysis of company data

14

14 · Key risks to guidance

Appendix: Sales growth drivers

ClaimEvidenceCalculation
Organic growth+7.0%Total company
Acquisition growth+2.7%Includes FloWorks from Aug 31
Divestments-0.2%Canada non-core businesses
Canada sales driversOrganic +0.6%; foreign exchange -1.9%Divestments -3.2%

Source: Ferguson news release, Nov 9, 2026; analysis of company data

15

15 · Appendix: Sales growth drivers

16 · Appendix: Profit and EPS

Appendix: Acquisitions and funding

ClaimEvidenceCalculation
Acquisition spend in Q3$1,700MIncludes FloWorks, closed Aug 31
Acquisitions completed in 202611 deals, $1.5B annualized salesIncluding one after quarter end
New debt in Q3$1,200M notes; $900M term loanTerm loan matures 2029
Goodwill$3,375M, up $905M in nine monthsAcquisitions

Source: Ferguson news release, Nov 9, 2026; analysis of company data

17

17 · Appendix: Acquisitions and funding

Appendix: Nine-month results

ClaimEvidenceCalculation
Net sales, nine months$25,249M, 6.0% YoYvs. nine months 2025
Adjusted operating profit, nine months$2,541M, 6.5% YoYvs. nine months 2025
Adjusted diluted EPS, nine months$9.09, 7.2% YoYvs. nine months 2025
Net income, nine months$1,678M, 3.8% YoYvs. nine months 2025

Source: Ferguson news release, Nov 9, 2026; analysis of company data

18

18 · Appendix: Nine-month results

Appendix: Income statement detail

Net sales to operating profit, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Net sales$8,245M$9,026M9.5%
Cost of sales$5,662M$6,240M10.2%
Selling, general and administrative$1,640M$1,783M8.7%
Depreciation and amortization$96M$116M20.8%

Operating profit to net income, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Operating profit$844M$885M4.9%
Interest expense, net$47M$64M36.2%
Provision for income taxes$153M$207M35.3%

Source: Ferguson news release, Nov 9, 2026; analysis of company data

19

19 · Appendix: Income statement

Appendix: sources

  • News release: Ferguson Enterprises Inc., Form 8-K Exhibit 99.1, Nov 9, 2026 — https://www.sec.gov/Archives/edgar/data/2011641/000201164126000042/exhibit991pressreleasesept.htm
  • Consensus: Benzinga, Nov 9, 2026, 8:13 AM ET — https://www.benzinga.com/markets/earnings/26/11/63029820/ferguson-raises-sales-outlook-driven-by-nonresidential-demand
  • Consensus cross-check: Seeking Alpha, Nov 9, 2026 — https://seekingalpha.com/news/4668857-ferguson-enterprises-inc-non-gaap-eps-of-3_43-beats-by-0_14-revenue-of-9b-beats-by-310m
  • Segment and sales-growth detail: US and Canada sections and segment overview table, same news release
  • Guidance: Calendar 2026 guidance table, same news release (updated guidance includes FloWorks)
  • Non-GAAP measures: adjusted operating profit, adjusted EPS, adjusted EBITDA and net debt are company-defined; reconciliations are in the news release
  • Share price: CNBC FERG quote, Nov 6 close; no Nov 9 pre-market trade shown as of 9:09 AM ET — https://www.cnbc.com/quotes/FERG

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20

20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from Ferguson Enterprises Inc.'s Nov 9, 2026 news release (Form 8-K Exhibit 99.1). Consensus figures come from Benzinga; the share price comes from CNBC. We have not independently verified third-party data.

Forward-looking statements. Guidance and watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.

Past performance. Past results, including those for Q3 2026, are not a reliable indicator of future results.

Non-GAAP measures. Adjusted operating profit, adjusted operating margin, adjusted EPS, adjusted EBITDA and net debt follow Ferguson's definitions. They supplement, and do not replace, GAAP measures.

No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.

No affiliation. This presentation is not affiliated with, reviewed or endorsed by Ferguson Enterprises Inc. and does not represent its views. Company and brand names belong to their owners.

How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings and consult a qualified professional adviser before making any investment decision.

Date of analysis. Figures are as reported on Nov 9, 2026. No FERG pre-market trade had been shown by 9:09 AM ET on Nov 9, 2026, so no share-price reaction is given; the Nov 6 close is shown for reference.

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21

21 · Disclosures

Sources

Not investment advice; no rating or price target.

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