WD-40 Company (WDFC) Stock: Revenue Climbs, Profits Dip as FY26 Guidance Stands Firm

Revenue up, profits down—WD-40 delivers another quarter of corporate cognitive dissonance.

The Top-Line Triumph

Sales keep spraying upward. The iconic brand's revenue stream shows no sign of seizing up, continuing its multi-quarter expansion streak. Market penetration? Still deep.

The Bottom-Line Squeeze

Profits took a hit. Margins got lubed—in the wrong direction. Input costs, operational expenses, or just the classic 'inflationary environment'—pick your corporate scapegoat. The net income line tells the real story.

Guidance: The Unwavering Forecast

Management holds the FY26 outlook steady. No adjustments, no wavering—just steadfast projections into an uncertain economic future. Confidence or stubbornness? Shareholders get to decide.

The market hates mixed signals more than a rusty bolt, yet here we are. Another earnings season, another masterclass in talking up growth while quietly counting thinner profits—the finance sector's favorite magic trick.

TLDR

• Q1 revenue rises 1% to $154.4M, but profits decline amid higher expenses.
• EPS misses forecasts at $1.28 vs. $1.45 expected, stock dips 1%.
• Specialist and e-commerce sales surge 18% and 22%, boosting growth.
• Americas and EIMEA segments up; Asia-Pacific struggles with distributors.
• Divestitures continue as WD-40 prioritizes maintenance products & shareholder returns.

WD-40 Company reported modest revenue growth in the first quarter of fiscal 2026, despite declining profits. Net sales increased to $154.4 million, up 1% from the same quarter last year. The company reaffirmed its full-year guidance, projecting results toward the mid-to-high end of expected ranges.

Quarterly Financial Performance

WD-40’s gross margin ROSE to 56.2%, compared to 54.8% in the prior year quarter. Operating income declined 7% to $23.3 million, reflecting higher expenses. Net income decreased 8% to $17.5 million, resulting in diluted earnings per share of $1.28.

Selling, general, and administrative expenses increased by 10% to $55.3 million, while advertising and sales promotion spending fell 2% to $8.2 million. The company attributed revenue growth to favorable currency translation, contributing $3.4 million. On a constant currency basis, net sales WOULD have declined by 2% to $151 million.

WD-40 missed analyst expectations, as net sales fell short of the forecasted $161.2 million. Earnings per share also came below projections of $1.45. The stock declined 1% in after-hours trading to $197 following the announcement.

Business Segments and Product Sales

Maintenance product sales, the company’s main focus, grew 2% to $148.9 million during the quarter. Direct market sales rose 8%, partly offset by weaker distributor market results. WD-40 Specialist products saw an 18% increase, while e-commerce sales expanded 22% year-over-year.

Geographically, the Americas segment achieved a 4% sales increase, driven by stronger results in the United States and Latin America. The EIMEA region posted a 2% rise, supported by higher Specialist product sales. Asia-Pacific markets declined 10%, reflecting challenges in the company’s distributor channels in the region.

Strategic divestitures continued, with the company completing the sale of its homecare and cleaning portfolio in the United Kingdom. WD-40 also plans to divest its homecare and cleaning product portfolios in the Americas. These actions align with the company’s focus on high-growth maintenance products.

Corporate Initiatives and Outlook

The company declared a quarterly cash dividend of $1.02 per share, representing an increase of over 8%.  WD-40 repurchased 39,500 shares for $7.8 million. Management emphasized a commitment to shareholder returns alongside revenue growth.

WD-40 reaffirmed fiscal 2026 guidance, expecting net sales growth between 5% and 9%. The company projects full-year net sales between $630 million and $655 million. Gross margin is expected between 55.5% and 56.5%, with operating income of $103 million to $110 million and EPS between $5.75 and $6.15.

The company’s performance reflects steady growth in key segments despite short-term profit pressures. Management remains focused on strengthening direct markets and Specialist product lines. Overall, WD-40 maintains its long-term strategy to drive growth while returning capital to shareholders.