Watsco Second Quarter Results Reflect Further Industry Stabilization, Strong E-Commerce Sales Growth and Continued Operating Efficiency

Watsco reported Q2 2026 results showing 2% revenue growth to $2.1 billion but declining profitability with operating income down 12% and EPS down 12% to $4.00. The company completed the Jackson Supply acquisition adding $230 million in annualized sales across 25 Sunbelt locations. E-commerce sales grew 13% reaching $2.7 billion (37% of total sales), while gross margins contracted due to normalized OEM pricing actions compared to 2025's outsized benefits from inflation and tariffs.