WD-40 (NASDAQ:WDFC) Announces Quarterly Earnings Results

WD-40 (NASDAQ:WDFC) posted its quarterly earnings data on Thursday. The specialty chemicals company reported $1.28 EPS for the quarter, missing analysts’ consensus estimates of $1.45 by ($0.17), Zacks reports. WD-40 had a net margin of 14.42% and a return on equity of 30.35%. The firm had revenue of $154.42 million for the quarter, compared to analysts’ expectations of $155.10 million. During the same period in the prior year, the company posted $1.39 earnings per share. WD-40’s quarterly revenue was up .6% compared to the same quarter last year. WD-40 updated its FY 2026 guidance to 5.750-6.150 EPS.

Here are the key takeaways from WD-40’s conference call:

• Company reaffirmed FY26 guidance, expecting net sales of $630–$655M and diluted EPS of $5.75–$6.15, and said it is confident it will land at the mid-to-high end of those ranges based on planned back-half initiatives.
• Gross margin strengthened to 56.2% (56.7% excluding assets held for sale), driven by lower specialty chemical/CAM costs and higher average selling prices, and management expects margins to remain above their 55% target range.
• Growth in strategic channels and SKUs — WD‑40 Specialist sales were up 18%, e‑commerce rose 22%, premium formats account for ~49% of Multi‑Use sales, and management highlighted a large addressable market opportunity to expand sales.
• Consolidated sales were only up 1% (maintenance products +2%), with direct markets growing 8% but marketing distributor markets (≈17% of sales) showing quarter-to-quarter volatility — Asia distributor timing drove the Q1 softness but a rebound is expected later in the year.
• Cost of doing business increased to 40% of sales (vs. target 30–35%) and Adjusted EBITDA margin fell to 17%, contributing to lower operating income, net income, and an 8% decline in quarterly EPS to $1.28.

WD-40 Trading Down 6.6%

NASDAQ WDFC opened at $190.00 on Friday. The company has a current ratio of 2.79, a quick ratio of 2.01 and a debt-to-equity ratio of 0.32. WD-40 has a 1-year low of $175.38 and a 1-year high of $253.48. The firm’s fifty day simple moving average is $197.93 and its 200-day simple moving average is $207.53. The company has a market capitalization of $2.57 billion, a PE ratio of 28.92 and a beta of 0.15.

WD-40 Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, January 30th. Stockholders of record on Friday, January 16th will be issued a dividend of $1.02 per share. The ex-dividend date is Friday, January 16th. This represents a $4.08 annualized dividend and a dividend yield of 2.1%. This is an increase from WD-40’s previous quarterly dividend of $0.94. WD-40’s dividend payout ratio is presently 56.29%.

Wall Street Analyst Weigh In

Several analysts have issued reports on WDFC shares. Weiss Ratings reissued a “hold (c)” rating on shares of WD-40 in a research note on Wednesday, October 8th. DA Davidson set a $300.00 price target on WD-40 in a report on Wednesday, November 26th. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $300.00.

WD-40 News Roundup

Here are the key news stories impacting WD-40 this week:

• Positive Sentiment: Company increased its dividend versus last year, supporting income investors and underpinning total-return appeal. WD-40’s Shareholders Will Receive A Bigger Dividend Than Last Year
• Positive Sentiment: Insider buying activity (including CEO and CFO purchases) was highlighted in coverage, which can signal management confidence. QuiverQuant Q1 summary with insider activity
• Positive Sentiment: Some analysts/investor reports frame the sell-off as a buying opportunity, citing intact long-term growth, gross-margin expansion and continued buybacks that could support recovery. MarketBeat: 5 Reasons Bulls Aren’t Worried
• Neutral Sentiment: Management will present at the ICR Conference on Jan. 13 (webcast available) — a source for more color on growth initiatives and margin recovery expectations. WD-40 to Participate in the 2026 ICR Conference
• Negative Sentiment: Q1 results missed expectations: EPS of $1.28 (below consensus), revenue ~$154.4M (roughly flat year-over-year and slightly below estimates), operating profit and operating cash flow declined — the direct cause of the downward price move. The company reaffirmed FY2026 guidance (EPS 5.75–6.15) but the midpoint is a touch below some analyst estimates. WD-40 Reports First Quarter 2026 Financial Results
• Negative Sentiment: Shares hit a 52-week low and traded at elevated volume after the earnings release, signaling selling pressure and short-term sentiment deterioration. MSN: WD-40 shares hit 52-week low
• Negative Sentiment: Analyst commentary flagged profitability headwinds (higher SG&A tied to growth initiatives, softer segments in HCCP and Asia Pacific) and suggested recent weakness isn’t yet a buy signal for all investors. Seeking Alpha: Drop Doesn’t Justify An Upgrade

Insider Activity

In other news, Director Eric Etchart purchased 500 shares of the business’s stock in a transaction dated Thursday, October 30th. The stock was bought at an average cost of $194.02 per share, with a total value of $97,010.00. Following the purchase, the director directly owned 8,370 shares of the company’s stock, valued at approximately $1,623,947.40. This trade represents a 6.35% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director David Pendarvis purchased 523 shares of WD-40 stock in a transaction dated Thursday, October 30th. The shares were purchased at an average price of $196.37 per share, with a total value of $102,701.51. Following the completion of the acquisition, the director owned 5,862 shares in the company, valued at $1,151,120.94. The trade was a 9.80% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have acquired 2,640 shares of company stock valued at $522,765. 0.78% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On WD-40

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Alliancebernstein L.P. grew its position in WD-40 by 6.4% in the third quarter. Alliancebernstein L.P. now owns 533,738 shares of the specialty chemicals company’s stock worth $105,467,000 after acquiring an additional 32,333 shares in the last quarter. Ameriprise Financial Inc. lifted its stake in shares of WD-40 by 24.4% in the 2nd quarter. Ameriprise Financial Inc. now owns 333,505 shares of the specialty chemicals company’s stock valued at $76,069,000 after purchasing an additional 65,423 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of WD-40 by 1.9% in the 3rd quarter. Dimensional Fund Advisors LP now owns 284,095 shares of the specialty chemicals company’s stock valued at $56,135,000 after purchasing an additional 5,173 shares during the last quarter. Invesco Ltd. boosted its holdings in WD-40 by 0.8% in the third quarter. Invesco Ltd. now owns 144,069 shares of the specialty chemicals company’s stock worth $28,468,000 after purchasing an additional 1,131 shares in the last quarter. Finally, Marshall Wace LLP increased its position in WD-40 by 44.3% during the third quarter. Marshall Wace LLP now owns 141,516 shares of the specialty chemicals company’s stock worth $27,964,000 after buying an additional 43,422 shares during the last quarter. Institutional investors own 91.52% of the company’s stock.

WD-40 Company Profile

WD-40 Company, headquartered in San Diego, California, is best known for its flagship WD-40® Multi-Use Product, a water-displacing spray used for lubrication, rust prevention and cleaning. Since its introduction in 1953 by the Rocket Chemical Company, the WD-40 brand has become a household and industrial staple. Over time, the company has broadened its portfolio to include complementary maintenance and cleaning brands such as 3-IN-ONE® oils, Lava® hand cleaners, Solvol® solvents, Spot Shot® stain removers and X-14® cleaning products.

WD-40 Company distributes its products in more than 176 countries through retail, industrial and automotive channels.