Ferguson Enterprises (FERG) Q3 revenue $9.0 billion vs $8.91 billion est.; adj. EPS $3.43 vs $3.37 est.

Ferguson Enterprises reported third-quarter sales of $9.0 billion, up 9.5% year over year and above the $8.91 billion consensus, with adjusted EPS of $3.43 beating the $3.37 estimate. The Newport News, VA-based distributor posted 7.0% organic growth, adjusted operating profit of $962 million (up 8.9%) and a 30.9% gross margin, down 40 basis points, while reported diluted EPS fell 4.9% to $3.08. CEO Kevin Murphy said non-residential sales rose 15% and residential grew 6%, and the company has completed eleven acquisitions this year with roughly $1.5 billion in aggregate annualized revenue, including FloWorks, which closed August 31, 2026. Ferguson raised its calendar 2026 guidance to about 7% net sales growth from mid-single digits and narrowed its adjusted operating margin outlook to 9.6%-9.8%, while lifting interest expense guidance to about $235 million and capital expenditures to roughly $425 million. The company declared a quarterly dividend of $0.89 and reported net debt to adjusted EBITDA of 1.7x following the FloWorks deal. Investors will watch whether the raised outlook holds as management described markets as mixed.