WD-40’s first quarter results reflected stronger-than-anticipated revenue and profit, with growth led by its maintenance products—particularly in the United States, where promotional activities and expanded distribution bolstered volumes. Management attributed this momentum to increased sales of core products, robust e-commerce performance, and the successful implementation of its Four-by-Four Strategic Framework. CEO Steven Brass emphasized, “This growth was driven by higher volumes with select customers and online retailers, supported by elevated promotional activity and modest price increases.”
Is now the time to buy WDFC? Find out in our full research report (it’s free for active Edge members).
WD-40 (WDFC) Q1 CY2026 Highlights:
- Revenue: $161.7 million vs analyst estimates of $154.5 million (10.7% year-on-year growth, 4.7% beat)
- EPS (GAAP): $1.50 vs analyst estimates of $1.43 (5.3% beat)
- Adjusted EBITDA: $31.49 million vs analyst estimates of $28.55 million (19.5% margin, 10.3% beat)
- The company reconfirmed its revenue guidance for the full year of $642.5 million at the midpoint
- EPS (GAAP) guidance for the full year is $5.95 at the midpoint, missing analyst estimates by 2.4%
- Operating Margin: 16.3%, in line with the same quarter last year
- Market Capitalization: $2.71 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From WD-40’s Q1 Earnings Call
- Michael Baker (D.A. Davidson): Sought clarification on the shift in guidance around gross margins versus earlier in the year. CFO Sara Hyzer confirmed that higher oil price assumptions now mean profitability metrics are expected to land within, rather than above, the prior guidance range.
- Michael Baker (D.A. Davidson): Asked about the visibility into strong U.S. growth. CEO Steven Brass cited unprecedented back-half promotional programs and new discount channel partnerships as key drivers of confidence.
- David Shakno (William Blair): Requested detail on Asia Pacific’s Specialist product growth and potential volatility. Brass replied that growth was broad-based across channels and countries, driven by distribution and promotions, but cautioned against assuming a repeat of 55% quarterly growth.
- Daniel Rizzo (Jefferies): Inquired about the timeline and impact of potential mitigation measures for input costs. Brass noted actions would be seen in the fourth quarter, with inventory levels delaying immediate margin impact.
- Aaron Reed (North Coast Research): Sought more color on the resilience of premiumized products and sustainability of growth in Asia. Brass emphasized ongoing momentum, particularly from new distribution and product innovation, with risks tied mainly to macroeconomic disruptions.
Catalysts in Upcoming Quarters
In coming quarters, our team will monitor (1) the effectiveness of expanded promotional activities and new U.S. distribution partnerships; (2) the timing and impact of price adjustments or cost mitigation efforts in response to oil price volatility; and (3) progress on the divestiture of the Americas homecare and cleaning brands. Additionally, we will track how quickly the new bio-based product introduction in Europe ramps and whether supply chain agility continues to support margins amid uncertainty.
WD-40 currently trades at $201.27, down from $223.02 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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