Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Watsco ( (WSO) ) has provided an update.
On April 28, 2026, Watsco reported first-quarter 2026 results that showed flat revenue of $1.53 billion and gross profit of $428 million, with operating income down 2% and earnings per share down 3% to $1.87, reflecting lower unit volumes but higher average selling prices tied to the ongoing A2L refrigerant transition that began in early 2025. Cash used in operations improved sharply to $19 million from $178 million a year earlier as working capital needs eased, while U.S. markets grew 2% against an 11% international decline, and the company increased its annual cash dividend by 10% in April 2026 to $13.20 per share.
The company also agreed to acquire Jackson Supply Company, a leading Sunbelt HVAC distributor with annual sales of $230 million, in a deal expected to close in the second quarter of 2026 and add meaningful scale and diversification in core Sunbelt markets under Jackson’s existing leadership team. Watsco’s growing technology ecosystem continued to gain traction, with e-commerce sales up 16% to represent 36% of trailing 12‑month sales and its OnCallAir digital sales platform generating a 20% rise in gross merchandise value, reinforcing the company’s competitive edge and supporting its buy‑and‑build expansion strategy in a stabilizing but still seasonal HVAC market.
The most recent analyst rating on (WSO) stock is a Hold with a $370.00 price target. To see the full list of analyst forecasts on Watsco stock, see the WSO Stock Forecast page.
Spark’s Take on WSO Stock
According to Spark, TipRanks’ AI Analyst, WSO is a Outperform.
The score is driven primarily by strong financial quality (conservative leverage and robust free-cash-flow generation) and constructive technical momentum. This is tempered by a relatively expensive valuation (P/E ~32.6) and earnings-call commentary pointing to ongoing near-term volume and sales softness despite margin improvement initiatives.
To see Spark’s full report on WSO stock, click here.
More about Watsco
Watsco, Inc. is the largest distributor in the highly fragmented North American heating, ventilation, air conditioning and refrigeration (HVAC/R) market, supplying residential and light-commercial equipment, parts and related products. The Miami-based company focuses on organic growth and acquisitions, supports about 74,000 contractors with advanced digital tools, and maintains a debt‑free balance sheet to fund technology and network expansion.
Since entering HVAC distribution in 1989, Watsco has completed more than 70 acquisitions and generated an 18% compounded annual total shareholder return, leveraging its scale and technology to consolidate a Sunbelt- and U.S.-centric customer base. It has invested over $250 million in e-commerce, mobile apps and digital sales platforms that drive higher customer engagement, efficiency and loyalty across its 650 locations.
Average Trading Volume: 476,148
Technical Sentiment Signal: Strong Buy
Current Market Cap: $17.91B
For a thorough assessment of WSO stock, go to TipRanks’ Stock Analysis page.