Watsco: 3 Key Takeaways for Long-Term Investors

Watsco reported 7% sales growth to $2.22 billion in Q3 2026, driven by HVAC volume and pricing gains. The company is expanding into plumbing distribution, leveraging its debt-free balance sheet and proprietary software to increase contractor loyalty and market share. Management targets a 30% gross margin through operational efficiency and views strategic M&A as key to compounding market share over the next three to five years.