Ferguson Reports 3.6% Revenue Growth in Q1 2026, Driven by…

Event summary

Ferguson reported Q1 2026 net sales of $7.5 billion, up 3.6% YoY, with non-residential revenue growing 8%.
Adjusted operating profit rose 8.4% YoY to $647 million, with adjusted EPS up 9.1% to $2.28.
Six acquisitions announced, including Carrier Great Lakes, with aggregate annualized revenue of $350 million.
Net debt to adjusted EBITDA improved to 1.0x, with $236 million in share repurchases completed.
Review of London Stock Exchange listing underway, with potential cancellation anticipated by Q2 2026.

The big picture

Ferguson's Q1 2026 results highlight its ability to outperform weak residential markets through non-residential strength and strategic acquisitions. The company's focus on water infrastructure, large capital projects, and climate solutions aligns with long-term growth drivers, but the review of its London listing introduces governance uncertainty. With a strong balance sheet and disciplined capital allocation, Ferguson is positioning itself for sustained growth despite economic headwinds.

What we're watching

Market Differentiation: Whether Ferguson can sustain non-residential revenue growth amid mixed market conditions.
Capital Allocation: The pace at which Ferguson integrates recent acquisitions and deploys its $2 billion share repurchase program.
Regulatory Compliance: The outcome of the London Stock Exchange listing review and its potential impact on shareholder value.