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) ) just unveiled an update.
On February 17, 2026, Watsco reported 2025 results marked by a 5% revenue decline to $7.24 billion but a record gross margin of 28.0%, as pricing technologies and OEM price actions offset weaker HVAC equipment volumes amid regulatory shifts and slower homebuilding. Despite lower earnings per share of $12.25 and softer fourth-quarter sales against a strong prior-year comparison, the company generated record fourth-quarter operating cash flow of $400 million, met its inventory reduction goals during the A2L refrigerant transition, and raised its annual dividend by 10% to $13.20 per share, underscoring its debt-free balance sheet, strong cash position and confidence in long-term growth supported by continued technology investments and digital adoption among contractors.
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.
Watsco’s overall stock score reflects strong financial performance and effective management, offset by technical weaknesses and valuation concerns. The company’s robust cash flow and strategic focus on technology adoption are significant positives, while sales challenges and high valuation temper the outlook.
To see Spark’s full report on WSO stock, click here.
More about Watsco
Watsco, Inc., based in Miami, is the largest distributor in the highly fragmented North American heating, ventilation, air conditioning and refrigeration (HVAC/R) market, supplying HVAC equipment, parts and commercial refrigeration products through some 650 locations. Since entering distribution in 1989, it has pursued organic growth and more than 70 acquisitions, while investing heavily in digital platforms that now serve about 73,000 contractors and generate roughly 35% of sales via e-commerce.
Average Trading Volume: 427,028
Technical Sentiment Signal: Buy
Current Market Cap: $16.96B
For detailed information about WSO stock, go to TipRanks’ Stock Analysis page.