Research
Research Alert: Ferguson Reports Solid Q1 With Margin Gains And Robust Capital Deployment
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Ferguson's Q1 2026 sales/EPS of USD7.47B/USD2.13 beat consensus estimates of USD7.41B/USD2.03, with net sales increasing 3.6% Y/Y, led by 2.8% organic growth and 0.8% acquisition contributions. Gross margin expanded 30 bps to 31.0%, while operating margin improved 120 bps to 8.2%, demonstrating operational excellence despite mixed end-market conditions. We are positive about the strong margin expansion, robust 8% non-residential growth offsetting the 1% residential decline, and disciplined capital allocation, including USD236M in share repurchases and a new USD2.0B buyback program. Ferguson maintained its 2026 guidance for low- to mid-single-digit sales growth with adjusted operating margins of 9.4%-9.8%, reflecting confidence in continued market outperformance. We believe the company's diversified end-market exposure and value-added distribution model position it well to capitalize on long-term growth drivers, including water infrastructure and large capital projects.
$FERG