Ferguson Enterprises (FERG) Stock Climbs on Strong Q2 Results and Improved Outlook

Key Highlights

• Adjusted earnings per share reached $3.39, surpassing analyst forecasts of $3.30
• Revenue increased 4.6% to $8.75 billion, exceeding Wall Street projections of $8.68 billion
• Annual revenue outlook improved to mid-single digit expansion from previous low to mid-single digit range
• Non-residential segment posted 8% revenue growth during the quarter; residential sector achieved positive growth despite market headwinds
• The company finalized five strategic acquisitions and entered an agreement to purchase FloWorks

Shares of Ferguson Enterprises climbed 1.3% to approximately $260 in premarket activity on Monday following the company’s second-quarter earnings report that exceeded analyst projections and featured an improved annual outlook.

Ferguson plc, FERG

The company’s adjusted earnings per share of $3.39 represented an improvement from $3.22 in the same period last year and topped the Street consensus estimate of $3.30. Revenue advanced 4.6% year-over-year to $8.75 billion, outperforming analyst projections of $8.68 billion.

In the United States, organic revenue expanded 4% during the three-month period, while completed acquisitions contributed an additional 1% to overall growth.

Chief Executive Kevin Murphy noted that Ferguson achieved “market outperformance” during the second quarter and managed to return the residential segment to positive territory despite facing a “challenging market backdrop.”

Ferguson Enterprises $FERG Q2 2026 Earnings
Steady growth + raised guidance…
with active M&A and continued capital returns

KEY METRICS (Q2 2026)
Net Sales: $8.8B (+4.6% YoY)
 • Organic: +3.8%
 • Acquisitions: +1.0%
Operating Profit: $893M…

— Emmanuel – Big Tech & AI Investor (@EmmanuelInvest) August 10, 2026

The residential business, representing approximately half of total company revenue, continued facing headwinds. New home construction remained sluggish while repair and remodeling activity stayed subdued.

Commercial Segment Powers Growth

The non-residential division emerged as the performance leader, delivering 8% revenue expansion during the period. Large-scale project activity maintained momentum, supported by expanding open order backlogs and robust bidding pipeline activity.

Gross profit margin registered 31.0%, declining 20 basis points compared to the prior-year quarter. Management attributed the comparison to temporarily elevated margins in the year-ago period resulting from the timing of vendor pricing adjustments.

Reported diluted earnings per share totaled $3.43, representing a 6.9% year-over-year gain. Adjusted EBITDA climbed 3.2% to $994 million for the quarter.

Enhanced Forecast and M&A Activity

Ferguson raised its annual net revenue projection to mid-single digit growth from the previously stated low to mid-single digit range. The adjusted operating margin forecast was narrowed to 9.5% to 9.8%, up from the prior 9.4% to 9.8% band.

The company also elevated its capital expenditure guidance to a range of $375 million to $425 million, compared to the earlier $350 million to $400 million forecast.

During the quarter, Ferguson closed five acquisitions, including Carrier Great Lakes, Dealers Supply Company, and PRD Technologies Group, among others. These transactions expanded the company’s footprint in HVAC, waterworks, and industrial valve segments across various US markets.

Following quarter-end, Ferguson entered a binding agreement to acquire FWI Holdings, operating as FloWorks, which specializes in technical valves and flow control products. The transaction is anticipated to conclude in the third quarter. Combined annualized revenue from all eight acquisitions announced through the current fiscal year approximates $1.4 billion.

Ferguson also terminated its secondary listing on the London Stock Exchange, which became effective July 20, 2026.

The board approved a quarterly dividend of $0.89 per share, scheduled for payment on October 7, 2026, to shareholders of record as of August 21, 2026.

FERG joined the S&P 500 index last week, taking the place of Electronic Arts. Year-to-date, the stock has appreciated more than 15%, exceeding the broader market benchmark’s performance.

Analyst consensus currently projects fiscal 2026 revenue of $32.74 billion, implying 4.6% growth compared to fiscal 2025.

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