TLDR

  • Q1 revenue increases 1% to $154.4 million, yet profits drop due to elevated expenses.
  • EPS falls short of forecasts at $1.28 versus the expected $1.45, with the stock slipping 1%.
  • Specialist and e-commerce sales jump 18% and 22%, fueling growth.
  • Americas and EIMEA segments see gains; Asia-Pacific faces distributor challenges.
  • Divestitures persist as WD-40 focuses on maintenance products and shareholder returns.

WD-40 Company announced moderate revenue growth in fiscal 2026’s first quarter, even as profits declined. Net sales climbed to $154.4 million, a 1% rise from the prior year’s same quarter. The company upheld its full-year guidance, expecting results to land in the mid-to-upper portion of anticipated ranges.

Quarterly Financial Performance

WD-40’s gross margin rose to 56.2%, up from 54.8% in the year-ago quarter. Operating income dropped 7% to $23.3 million, driven by higher expenses. Net income fell 8% to $17.5 million, leading to diluted earnings per share of $1.28.

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

WD-40 missed analyst expectations—net sales fell short of the forecasted $161.2 million, and earnings per share also lagged the projected $1.45. Following the announcement, the stock declined 1% in after-hours trading to $197.

Business Segments and Product Sales

Sales of maintenance products—WD-40’s core focus—grew 2% to $148.9 million during the quarter. Direct market sales rose 8%, though this was partially offset by softer distributor market performance. WD-40 Specialist products saw an 18% increase, while e-commerce sales expanded 22% year-over-year.

Geographically, the Americas segment recorded a 4% sales gain, powered by stronger results in the United States and . The EIMEA region posted a 2% rise, backed by higher Specialist product sales. Asia-Pacific markets fell 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 offload 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 its commitment to shareholder returns alongside revenue growth.

WD-40 stood by its fiscal 2026 guidance, forecasting net sales growth of 5% to 9%. Full-year net sales are projected to be between $630 million and $655 million. Gross margin is expected to range from 55.5% to 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 of driving growth while returning capital to shareholders.