-- 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.