Household products company WD-40 (NASDAQ:WDFC) reported calendar Q3 2026 (fiscal Q4 2026) results topping the market's revenue expectations , with sales up 8.1% year on year to $176.8 million. The company expects the full year's revenue to be around $725 million, close to analysts' estimates. Its GAAP profit of $1.06 per share was 7.8% below analysts' consensus estimates.
Is now the time to buy WD-40? Find out in our full research report .
WD-40 (WDFC) Q3 CY2026 highlights:
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Revenue:$176.8 million vs analyst estimates of $172.1 million (8.1% year-on-year growth, 2.7% beat)
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EPS (GAAP):$1.06 vs analyst expectations of $1.15 (7.8% miss)
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EPS (GAAP) guidance for the upcoming financial year 2027is $6.55 at the midpoint, beating analyst estimates by 1.7%
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Operating Margin:10.8%, down from 17.1% in the same quarter last year
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Free Cash Flow Margin:26.4%, up from 17.5% in the same quarter last year
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Market Capitalization:$2.58 billion
Company overview
Short for "Water Displacement perfected on the 40th try", WD-40 (NASDAQ:WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.
Revenue growth
A company's long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.
With $688 million in revenue over the past 12 months, WD-40 is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into.
As you can see below, WD-40 grew its sales at a decent 8.6% compounded annual growth rate over the last three years. This shows its offerings generated slightly more demand than the average consumer staples company, a helpful starting point for our analysis.
This quarter, WD-40 reported year-on-year revenue growth of 8.1%, and its $176.8 million of revenue exceeded Wall Street's estimates by 2.7%.
Looking ahead, sell-side analysts expect revenue to grow 5.4% over the next 12 months, a deceleration versus the last three years. Still, this projection is above average for the sector and implies the market is forecasting some success for its newer products.
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Cash is king
If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills.
WD-40 has shown terrific cash profitability, driven by its lucrative business model that enables it to reinvest, return capital to investors, and stay ahead of the competition. The company's free cash flow margin was among the best in the consumer staples sector, averaging 13.8% over the last two years.
WD-40's free cash flow clocked in at $46.67 million in Q3, equivalent to a 26.4% margin. This result was good as its margin was 8.9 percentage points higher than in the same quarter last year. Its cash profitability was also above its two-year level, and we hope the company can build on this trend.
Key takeaways from WD-40's Q3 results
It was encouraging to see WD-40 beat analysts' revenue expectations this quarter. We were also glad its full-year EPS guidance exceeded Wall Street's estimates. On the other hand, its EPS missed. Overall, this was a solid quarter. The stock traded up 5.6% to $203.34 immediately after reporting.
So should you invest in WD-40 right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free .
