FERG US S&P 500Russell 1000 Earnings call
Ferguson Enterprises (FERG) · Q2 2026 results and valuation
Share price: $264.50 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 10 Aug 2026 and 9 Dec 2025
Net income up 60.9% on the previous quarter, guidance raised. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+60.9%
Net income vs Q1 2026
Guidance raised
Net income 666.0M vs 414.0M
Revenue +17.1%
2 · How management spoke
Typical
More upbeat than 61% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Key theme
$1.6 billion FloWorks deal expected to immediately boost adjusted earnings per share.
Valuation
Is Ferguson Enterprises undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-07-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.5% growth a year (3-year revenue growth), the model's fair value is $87.83 a share — the stock trades 201% above it. Today's price assumes 15.3% growth a year.
Current price
$264.50
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+15.3% for 10 yrs
Fair value / share
$87.83
Buy below
$65.88
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
-
Key theme
The company announced additional price increases due to geopolitical events as inflation remained in the low-single-digit range for the year.
Source quote
“we were in the midst of some additional price increase announcements, particularly with geopolitical events that were going on at that time... We had flagged that we thought that inflation could be a touch above our original expectation, but still in that low-single-digit range for the year.”
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Guidance ↑
The company raised its net sales growth expectations from low-to mid-single-digits to mid-single-digits.
Source quote
“We now expect net sales to grow mid-single-digits, an increase from our prior expectations of low-to mid-single-digit growth.”
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Guidance
The acquisition of FloWorks is expected to be immediately accretive to adjusted earnings per share because the transaction values the company at an enterprise value of approximately $1.6 billion.
Source quote
“The cash transaction values FloWorks at an enterprise value of approximately $1.6 billion, and we expect the deal to be immediately accretive to adjusted earnings per share.”
-
Figure
Sales grew to $8.8 billion, an increase of 4.6% over the prior year driven by 3.8% organic growth and 1% acquisition growth.
Source quote
“Sales of $8.8 billion increased 4.6% over prior year, principally driven by organic growth of 3.8% and acquisition growth of 1%.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“If you look at our 11% growth in the quarter, on top of a prior year growth rate of 1%, we were quite pleased with that return to very strong...”
“Operating profit grew 5.1% to $1.6 billion, delivering a 9.7% operating margin with 10 basis points of expansion over the prior year.”
“Operating profit increased 2.9% to $932 million, driving a 5.3% increase in diluted earnings per share to $3.39.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change |
|---|---|---|---|
| Revenue | 8.75B | 7.47B | +17.1% |
| Gross profit | 2.71B | 2.32B | +17.0% |
| Operating income | 893.0M | 612.0M | +45.9% |
| Net income | 666.0M | 414.0M | +60.9% |
| EPS | 3.43 | 2.13 | +61.0% |
| P/E today 22.4 | 23.9 | 24.0 | −0.1 |
Topics
Most discussed now
- Fading If you go to your question around the non-residential side of the business, clearly it still is large capital construction...
- Data center construction activity continues to be the strength of that sector, but Ferguson is also seeing good growth, which are...
- To your point, Ferguson did see a touch of expected seasonal underlying gross margin compression.
- Ferguson is pleased with its volume growth amid what continues to be a mixed market.
- Operating profit increased 2.9% to $932 million, driving a 5.3% increase in diluted earnings per share to $3.39.
Faded since Q1 2026
- Fading Ferguson grew Waterworks revenues by 14% as its highly diversified customer group saw strength in large capital projects public works,...
- Fading Ferguson's balance sheet remains strong, with net debt to EBITDA of 1.1 times.
- Dropped Outside of Ferguson's waterworks business, there's a little bit of a lag of those slower starts coming through the rest...
- Dropped Never abandoning the local relationships that Ferguson has with its core contractor base, but also making sure that it can...
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Results of operations · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K