NEW YORK, August 10, 2026, 07:23 EDT — U.S. cash markets remain shut while premarket activity continues.
- Ferguson reported adjusted earnings per share of $3.39, exceeding the consensus estimate of $3.30.
- Sales for the quarter increased by 4.6% to $8.75 billion, surpassing forecasts.
- The company now expects its 2026 sales to grow at a mid-single-digit rate.
Ferguson Enterprises NYSE:FERG exceeded quarterly expectations and raised its sales outlook on Monday. Shares climbed 1.0% to $259.34 ahead of the market open.
The subdued response highlights the challenge for investors. Stronger performance is needed to support a trailing price-to-earnings ratio of 26.5, following the index-led surge last week.
Ferguson reported adjusted earnings per share of $3.39, surpassing the expected $3.30. Revenue came in at $8.75 billion, exceeding the consensus forecast of $8.68 billion by 0.8%.
| Second-quarter measure | Reported | Consensus | Difference |
|---|---|---|---|
| Adjusted EPS | $3.39 | $3.30 | up $0.09, or 2.7% |
| Net sales | $8.75 billion | $8.68 billion | ahead by $0.07 billion, or 0.8% |
| Net-sales growth | 4.6% | Not stated | — |
Guidance offers a more relevant comparison than the second-quarter EPS from a year earlier. Ferguson has shifted to calendar-year reporting, so the previous January quarter does not align seasonally with the new June period.
Management narrowed its 2026 sales growth forecast to a mid-single-digit percentage. The company also lifted its capital expenditure range, moving the midpoint up by 6.7%.
| 2026 outlook | Previous | Current | Change |
|---|---|---|---|
| Net sales growth | Low to mid-single digits | Mid-single digits | Range moves higher |
| Capital expenditure | $350 million-$400 million | $375 million-$425 million | Midpoint up 6.7% |
| Capex midpoint | $375 million | $400 million | Increase of $25 million |
The previous forecast anticipated sales growth in the low- to mid-single digits, with capital expenditures between $350 million and $400 million. The projected adjusted operating margin was set at 9.4% to 9.8%.
The stock ended Friday at $256.69, then changed hands at $259.34 ahead of Monday’s session. The price remained 4.5% under the 52-week peak of $271.64.
Analysts maintained a positive outlook on Wall Street ahead of the report. Over the past three months, eight out of ten analysts advised buying Ferguson, with the remaining two suggesting a hold.
| Analyst recommendation | Analysts | Share of tracked ratings | 12-month target context |
|---|---|---|---|
| Buy | 8 | 80% | Mean price target: $292.83 |
| Hold | 2 | 20% | Lowest projected target: $267.11 |
| Sell | 0 | 0% | Highest target price: $323.73 |
The targets were set before Monday’s results. With an average target of $292.83, there was an implied upside of roughly 12.9% from the most recent premarket price, indicating little margin for any execution shortfalls.
A separate trigger emerged last week. Ferguson surged 6.7% on Monday after S&P Dow Jones Indices included it in the S&P 500.
Ferguson took the place of Electronic Arts NASDAQ:EA ahead of Wednesday’s market open. Around $20 trillion tracks or is benchmarked to the S&P 500, prompting mandatory buying from certain funds.
Ferguson’s increased spending plan is significant as the company moves further past standard plumbing distribution. The company’s capital spending is growing even as demand for housing and HVAC stays subdued.
In July, the company also announced a deal to acquire FloWorks for approximately $1.6 billion. The industrial flow-control firm posted around $1 billion in revenue for 2025, expanding the company’s reach into data centers and the semiconductor sector.
Residential markets continue to be the main short-term limitation. U.S. residential revenue declined by 1% in the March quarter, while non-residential revenue increased by 9%.
Monday trade will indicate if the earnings surprise can carry forward last week’s gains. Market participants should pay attention to the initial price action, listen for the management’s 08:30 EDT conference call, and review any revised margin information.
Risks: sluggish housing demand may counteract gains from major projects. Increased capital expenditure and the FloWorks acquisition could further raise execution risk if there is any weakening in margins or cash conversion.
The quarter surpassed expectations. Maintaining growth at a level that justifies the valuation, following share revaluation due to index inclusion, presents a greater challenge.
