Why WD-40 Stock Popped Today
Shares of WD-40 (WDFC +10.16%) spiked on Friday after the household and industrial products maker delivered profits that handily exceeded investors’ expectations.
Image source: Getty Images.
Strong revenue and earnings growth
WD-40’s net sales jumped 24% to $195 million in its fiscal 2026 third quarter, which ended on May 31.
The gains were broad-based. Sales in the company’s Americas, Asia-Pacific, and EIMEA (Europe, India, Middle East, and Africa) segments rose 29%, 24%, and 17%, respectively.
Management credited expanded distribution, e-commerce growth, and a strong customer response to its promotions as key drivers of sales.
Today’s Change
(10.16%) $24.32
Current Price
$263.74
Key Data Points
Market Cap
Day’s Range
$262.52 – $298.44
52wk Range
$175.38 – $298.90
Volume
20.4K
Avg Vol
172.5K
Gross Margin
54.76%
Dividend Yield
1.64%
Higher sales of premium versions of its WD-40 products also helped to boost the company’s profit margins.
Gross margin improved to 56.6% from 56.2% in the year-ago quarter. That, combined with other scale benefits, contributed to a 47% surge in WD-40’s operating income to $40.3 million.
All told, WD-40’s adjusted net income soared 50% to $31.5 million, or $2.33 per share. That was well above Wall Street’s estimates, which had called for per-share profits of $1.56.
Raised outlook
These solid results, along with the company’s decision to no longer pursue a sale of its Americas home care and cleaning brands, prompted management to raise its full-year guidance.
Management now sees net sales growing by 10%-12% to between $675 million and $690 million, with adjusted earnings per share rising by 6%-11% to $6.05-$6.35.
Looking further ahead, WD-40’s impressive profitability, global growth, and well-covered 1.5% dividend should all support additional long-term gains for investors.
