Zacks Research Forecasts Watsco’s FY2026 Earnings (NYSE:WSO)

Watsco, Inc. (NYSE:WSO) – Zacks Research dropped their FY2026 earnings per share (EPS) estimates for shares of Watsco in a research report issued to clients and investors on Tuesday, March 10th. Zacks Research analyst Team now anticipates that the construction company will post earnings of $12.38 per share for the year, down from their previous forecast of $12.93. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Watsco’s current full-year earnings is $14.62 per share.

Watsco (NYSE:WSO) last announced its quarterly earnings results on Tuesday, February 17th. The construction company reported $1.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.94 by ($0.26). Watsco had a net margin of 6.87% and a return on equity of 15.49%. The company had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.62 billion. During the same quarter in the prior year, the company posted $2.37 earnings per share. The firm’s revenue for the quarter was down 9.9% on a year-over-year basis.

WSO has been the topic of a number of other reports. KeyCorp reaffirmed a “sector weight” rating on shares of Watsco in a research report on Friday, December 12th. UBS Group initiated coverage on shares of Watsco in a research note on Monday, January 5th. They issued a “neutral” rating and a $370.00 price target for the company. Mizuho set a $425.00 price target on shares of Watsco in a report on Wednesday, February 18th. JPMorgan Chase & Co. increased their price objective on shares of Watsco from $370.00 to $400.00 and gave the company a “neutral” rating in a research note on Thursday, February 19th. Finally, Wolfe Research set a $349.00 target price on shares of Watsco in a research report on Tuesday, December 9th. One investment analyst has rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $409.00.

Watsco Price Performance

Watsco stock opened at $364.09 on Thursday. Watsco has a 12-month low of $323.05 and a 12-month high of $521.70. The company has a market capitalization of $14.77 billion, a price-to-earnings ratio of 30.06 and a beta of 1.03. The firm’s fifty day moving average price is $393.30 and its 200 day moving average price is $376.93.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Bayban bought a new position in Watsco during the 4th quarter valued at $29,000. Taylor Securities Services Inc. bought a new stake in shares of Watsco in the 4th quarter worth $7,952,000. Alpine Global Management LLC acquired a new stake in shares of Watsco in the fourth quarter valued at $207,000. Anchor Investment Management LLC lifted its holdings in shares of Watsco by 19.4% in the fourth quarter. Anchor Investment Management LLC now owns 21,804 shares of the construction company’s stock valued at $7,347,000 after buying an additional 3,538 shares during the period. Finally, River Road Asset Management LLC boosted its stake in Watsco by 91.5% during the fourth quarter. River Road Asset Management LLC now owns 16,907 shares of the construction company’s stock valued at $5,697,000 after buying an additional 8,076 shares in the last quarter. 89.71% of the stock is currently owned by institutional investors.

Watsco Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, January 30th. Investors of record on Friday, January 16th were given a $3.00 dividend. This represents a $12.00 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date was Friday, January 16th. Watsco’s dividend payout ratio is currently 99.09%.

Trending Headlines about Watsco

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Zacks raised some late‑stage estimates — notably Q3 and Q4 2027 — signaling expected recovery in the back half of 2027. This suggests analysts see a rebound beyond the near term. Zacks raises Q3/Q4 2027 estimates
• Positive Sentiment: Zacks also nudged Q4 2026 slightly higher and published a FY2028 estimate of $15.63, implying stronger medium‑term earnings potential if demand recovers. Zacks issues FY2028 outlook
• Neutral Sentiment: Zacks maintains a “Hold” rating on WSO; its detailed quarterly schedules remain a mix of cuts and raises, and the firm’s full‑year consensus (marketwide) still sits near $14.62 EPS. Investors should view the note as model tuning rather than a change in recommendation. Zacks Hold rating and consensus
• Negative Sentiment: Key near‑term downgrades: Zacks cut FY2026 to $12.38 from $12.93 and trimmed several 2026 quarter estimates (Q1–Q3), reflecting weaker near‑term demand and continuing pressure after Watsco’s recent quarterly revenue and EPS miss. These downward revisions likely explain the share weakness. Zacks lowers FY2026 and 2026 quarterly estimates
• Negative Sentiment: Zacks also trimmed parts of the 2027 outlook (Q1 and Q2 2027 and FY2027 modestly reduced to $13.83), signaling slower recovery timing than some investors may have expected. That dampens near‑term earnings visibility versus prior expectations. Zacks trims 2027 estimates

Watsco Company Profile

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.