# Watsco, Inc. (WSO)

> Source: Nexqual · https://nexqual.com/WSO · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Watsco, Inc. (WSO), nexqual.com/WSO" · informational, not investment advice.

**Price:** USD 327.04 (+7.22% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 305.03 · day 302.37–330.65 · 52w 277.34–459 · market cap $13.5B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $7.28B, net income $476M (6.5% margin), free cash flow $697M (SEC filings).
- Valuation: P/E 28.4x (avg 29.3x at the last 3 fiscal year-ends).
- 2 of 80 tracked superinvestors hold WSO (13F, Q2 2026): 1 new, 1 added, 0 reduced, 0 unchanged.
- Analysts: Hold (mean 2.86 on a 1–5 scale) (14 analysts), mean target USD 349.9 (range 315–433).
- Total return with dividends: 1Y -5.6% vs S&P 500 +14.9%; 5Y +28.4% vs S&P 500 +80.3%.
- Next earnings: 2026-10-27, EPS estimate USD 4.11, revenue estimate $2.21B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $6.28B | $7.27B | $7.28B | $7.62B | $7.24B | $7.28B |
| Gross profit | $1.67B | $2.03B | $1.99B | $2.04B | $2.03B | — |
| Operating income | $629M | $832M | $795M | $782M | $720M | $685M |
| Net income | $419M | $601M | $536M | $536M | $497M | $476M |
| EPS (diluted) | $10.78 | $15.41 | $13.67 | $13.30 | $12.25 | — |
| Free cash flow | $324M | $536M | $526M | $743M | $535M | $697M |
| Gross margin | 26.6% | 27.9% | 27.4% | 26.8% | 28.0% | — |
| Operating margin | 10.0% | 11.4% | 10.9% | 10.3% | 10.0% | 9.4% |
| Net margin | 6.7% | 8.3% | 7.4% | 7.0% | 6.9% | 6.5% |
| Revenue growth | +24.2% | +15.8% | +0.1% | +4.6% | -5.0% | — |
| Cash + short-term investments | $118M | $148M | $210M | $782M | $733M | — |
| Total debt | $285M | $244M | $305M | $337M | $362M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 28.4x · P/S 1.9x · P/FCF 19.4x · P/B 4.5x · FCF yield 5.17% · Earnings yield 3.53% · Dividend yield (paid, TTM) 3.70%
P/E at fiscal year-ends: Dec 2025 25.7x, Dec 2024 33.1x, Dec 2023 29.2x.

## Superinvestors (SEC 13F-HR, Q2 2026)
2 of 80 tracked investors hold WSO. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Thomas Gayner | Markel Group | 1.90% | $249M | Added +2.7% |
| Francois Rochon | Giverny Capital | 0.92% | $27.5M | New position |

## Analysts
Consensus Hold (mean 2.86 on a 1–5 scale), 14 analysts; mean target USD 349.9 (low 315, high 433).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-15 | Mizuho | Target lowered | Neutral | $350 → $325 |
| 2026-10-12 | Morgan Stanley | Target lowered | Equal-Weight | $370 → $330 |
| 2026-08-17 | Stephens & Co. | Reiterated | Overweight | $485 |
| 2026-07-30 | DA Davidson | Target lowered | Neutral | $385 → $330 |
| 2026-07-28 | Baird | Target lowered | Outperform | $460 → $420 |
| 2026-07-10 | Morgan Stanley | Target raised | Equal-Weight | $370 → $405 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -5.6% | +28.4% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -5.7% | +5.1% |
| Volatility (annualized) | 34.8% | 31.8% |
| Max drawdown | -38.2% (Apr 2026→Oct 2026) | -46.9% (Nov 2024→Oct 2026) |

## Peers (Industrial Distribution)
AIT (Applied Industrial Technologies) USD 319.4 -5.75% · WCC (WESCO International, Inc.) USD 323.68 -7.23% · QXO (QXO, Inc.) USD 11.02 +6.89% · CNM (Core & Main, Inc.) USD 42.33 +2.17% · POOL (Pool Corporation) USD 197.21 +14.36% · XMTR (Xometry, Inc.) USD 89.16 +0.25%

## More
Full page: https://nexqual.com/WSO · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)


Other companies that name WSO in their own reports (relationship from WSO's side):

| Relationship | Company | Their filing | Sentence |
|---|---|---|---|
| partner | CARRIER GLOBAL Corp (CARR) | 10-K 2026-02-05 | "We sell our products and services through certain key distributor, joint venture and similar relationships, including the Carrier Enterprise joint ventures with Watsco, Inc., AHI-Carrier FZC, a United…" |

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $1.93B | 91.5% | +2.8% |
| Latin America & Caribbean | $89.8M | 4.3% | -4.8% |
| Canada | $88.3M | 4.2% | -5.7% |
| Total revenue | $2.10B | 100% | — |

## Company outlook (8-K filed 2026-07-29)

- "The Company expects more conventional supply-chain trends for the remainder of 2026, providing the opportunity for better inventory turns and enhanced returns on invested capital."
- "Watsco assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law. 3 WATSCO, INC."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $4.11 | $4.31 | -4.7% | $2.21B | 10 |
| Next quarter (ends 2026-12-31) | $1.94 | $2.05 | -5.2% | $1.72B | 9 |
| Current fiscal year (ends 2026-12-31) | $12.14 | $12.71 | -4.4% | $7.58B | 11 |
| Next fiscal year (ends 2027-12-31) | $13.30 | $13.74 | -3.2% | $8.08B | 11 |