The Q4 miss and margin compression are the headline, but FY2027 guidance of 5-10% EPS growth suggests management expects a recovery. Watch for sequential gross margin improvement in Q1 FY2027 as the company has called Q4 FY2026 the low point. The $100M buyback authorization provides a floor, but the stock will likely trade down on the earnings miss before any recovery narrative takes hold.
Price Chart
Executive Summary
WD-40 Company reported Q4 FY2026 results that missed consensus estimates, with EPS of $1.06 (vs $1.32 consensus, -19.7% miss) and revenue of $176.8M (vs $166.4M consensus, +6.3% beat). The EPS miss was driven by a sharp decline in gross margin to 52.8% (from 54.7% a year ago) due to higher input costs, and a 32% drop in operating income. Management guided FY2027 EPS to $6.40-$6.70, implying 5-10% growth from FY2026's $6.08, but the Q4 miss and margin compression are the dominant signals.
Key Financial Metrics
Key Facts
- Q4 FY2026 diluted EPS of $1.06 missed consensus of $1.32 by 19.7%
- Q4 revenue of $176.8M beat consensus of $166.4M by 6.3%
- Q4 gross margin contracted 190bps to 52.8% from 54.7% a year ago
- Q4 operating income fell 32% to $19.1M from $28.0M a year ago
- FY2026 full-year EPS of $6.08 was down 9% from $6.69 in FY2025
- FY2027 guidance: EPS $6.40-$6.70, revenue $715M-$735M on constant currency basis
- New $100M share repurchase program authorized, effective Sept 1, 2026
- Quarterly dividend maintained at $1.02 per share
Financial Impact
Q4 EPS miss of $0.26 vs consensus represents a ~$3.5M net income shortfall; gross margin compression of 190bps is the primary driver of the earnings miss
Risk Factors
- Higher specialty chemical costs could further compress gross margins beyond Q4 FY2026 levels
- FY2027 guidance assumes crude oil prices remain near current levels through H1 before moderating
- Geopolitical uncertainty in the Middle East and potential trade/tariff impacts on international operations
- Execution risk on growth initiatives in EIMEA and Asia-Pacific amid currency volatility
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000105132-26-000086 |
| Document: wdfc-20261021.htm | 0000105132-26-000086 |
| Document: 0000105132-26-000086-index-headers.html | 0000105132-26-000086 |
| Document: 0000105132-26-000086-index.html | 0000105132-26-000086 |
| Document: 0000105132-26-000086.txt | 0000105132-26-000086 |
| 8-K Data (Synthetic) | 0000105132-26-000086 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $210.18 $212.71 | ▼ −1.20% | ▼ −1.73% | $216.06 (−2.80%) |
Apr 9, 2026 28w ago | 8-K | $212.94 $206.00 | ▲ +3.26% | ▲ +4.23% | $216.06 (−1.47%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers