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Watsco's third-quarter revenue rose 7.4% to $2.22B, but net income attributable to Watsco fell 3.8% to $155.4M as gross margin narrowed to 26.4%.
Filed November 6, 2026 · Period ending September 30, 2026 · Compared to 10-Q Nov 7, 2025 · ~2 min read
Key Changes
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Revenue increased 7.4% to $2.22B in the third quarter, driven by $77.8 million attributable to new locations acquired and a 4% increase in same-store sales.
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Gross margin declined 1.1 percentage points to 26.4%, which the company attributes to customer mix, end-market mix, less impactful OEM pricing actions in 2026 versus 2025, and the change in sales mix of HVAC equipment and non-equipment products.
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Net income attributable to Watsco decreased 3.8% to $155.4M, primarily due to higher selling, general and administrative expenses, partially offset by higher gross profit and interest income and lower income taxes and net income attributable to the non-controlling interest.
2 more material changes behind this preview — plus the full narrative summary, section-by-section diffs against the prior filing, and verbatim quotes with EDGAR citations.
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Figures/quotes linked to EDGAR · Narrative written by AI · Nov 9, 2026 · How we verify