WD-40 earnings fell short of fourth-quarter expectations even as revenue exceeded forecasts, with rising specialty chemical costs weighing on profitability. The company’s October 21, 2026, 8-K filing showed diluted earnings of $1.06 per share against a $1.15 estimate, while sales reached $176.8 million, above the expected $172.08 million.
Key Takeaways
- Fourth-quarter sales rose 8%, but gross margin narrowed to 52.8% and net income fell to $14.4 million.
- Fiscal 2026 revenue increased 11% to $688.0 million, while annual net income declined 10%.
Table of Contents
WD-40 earnings show pressure from input costs
The quarter’s revenue growth did not translate into higher profit. Sales increased from $163.5 million a year earlier, but net income dropped to $14.4 million from $21.2 million. Diluted earnings per share fell from $1.56 to $1.06.
Gross margin declined to 52.8% from 54.7% as input costs rose, primarily for specialty chemicals.
Annual growth spans all three regions
For the fiscal year ended August 31, 2026, net sales reached $688.0 million, up from $619.9 million. Growth was 11% on a reported basis and 7% in constant currency. Maintenance product sales increased 13% to $665.9 million.
Sales rose 12% in the Americas, the company’s largest revenue region, and 10% in both EIMEA—Europe, India, the Middle East and Africa—and Asia-Pacific.
Annual gross margin edged up to 55.3% from 55.1%, contrasting with the fourth-quarter contraction. Net income declined 10% to $82.3 million from $90.9 million, largely because a prior-year tax adjustment had overstated fiscal 2025 results. Annual diluted earnings fell to $6.08 from $6.69.
WD-40 generated $105 million in operating cash flow during fiscal 2026, supporting continued investment in advertising and promotional activities.
Conclusion
WD-40 ended fiscal 2026 with higher sales across every region, but its fourth-quarter earnings miss exposed cost pressure. The annual profit comparison also reflected a prior-year tax adjustment, distinguishing that decline from the quarter’s margin squeeze.
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