Ferguson Enterprises Inc. reported first‑quarter 2026 revenue of $7.472 billion, up 3.6% from the same period a year earlier, driven largely by an 8% rise in non‑residential sales that offset a 1% decline in residential revenue. The company’s net income rose to $414 million, a 20% increase year‑over‑year, while operating profit climbed 21% to $612 million. Diluted earnings per share from continuing operations reached $2.13, beating consensus estimates and reflecting a 23.1% year‑over‑year increase.
The reported operating margin expanded to 8.2% from 7.0% a year earlier, while the adjusted operating margin improved to 8.7%, up 40 basis points on an adjusted basis. The margin growth is attributable to a higher mix of high‑margin non‑residential contracts and disciplined cost management, even as the company invested in large capital projects such as data‑center and water‑works segments.
Management reiterated its 2026 guidance, maintaining a low‑to‑mid‑single‑digit revenue growth outlook and an operating margin target of 9.4%–9.8%. CEO Kevin Murphy said, “Our associates delivered another quarter of solid results in a challenging market. We are particularly pleased with another quarter of strong non‑residential revenue growth, driven by our ability to serve large capital projects. Our scale‑advantaged business model and consistent cash generation enable us to invest in organic growth, consolidate our markets through acquisitions and return capital to shareholders, all while maintaining a strong balance sheet.” CFO Bill Brundage added, “Productivity initiatives and cost discipline contributed to the quarter’s performance while we invest for future growth.”
Investors focused on the 1% decline in residential revenue and a decrease in operating cash flow, which tempered enthusiasm for the strong non‑residential performance. The company’s guidance signals confidence in continued demand for its core large‑capital‑project services while acknowledging the headwinds in the residential market.
The results underscore Ferguson’s pricing power and scale advantage in a fragmented distribution market, reinforcing its competitive moat and supporting its strategic focus on North American growth. The company’s ongoing acquisition activity—two completed acquisitions in Q1 2026 and three more agreements in the pipeline—further illustrates its commitment to market consolidation and expansion of its service portfolio.
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