Ferguson Enterprises Reports 3.6% Sales Increase and 20% Net Income Growth in Q1 2026

Ferguson Enterprises Inc. reported a net sales increase of 3.6% for the first quarter of 2026, reaching $7.472 billion compared to $7.213 billion in the same period last year. The company's gross profit also saw a rise, totaling $2.318 billion, up from $2.216 billion, reflecting a gross profit margin of 31.0%, slightly higher than the previous year's 30.7%. Net income for the quarter was $414 million, a 20% increase from $345 million in the first quarter of 2025, resulting in diluted earnings per share of $2.13, up from $1.73.

The financial performance was bolstered by price inflation and incremental sales from acquisitions, which contributed approximately 0.8% to the sales growth. However, this was partially offset by a decline in sales volume. The United States segment, which accounted for the majority of sales, reported a 3.5% increase in net sales to $7.146 billion, driven by strong performance in non-residential markets, while the Canada segment experienced a 5.5% increase to $326 million, aided by acquisitions and favorable foreign currency exchange rates.

Operationally, Ferguson's selling, general, and administrative expenses rose to $1.607 billion, up from $1.565 billion, but as a percentage of sales, these expenses decreased to 21.5% from 21.7%, indicating improved productivity. The company also reported a significant increase in cash and cash equivalents, which rose to $820 million from $557 million at the end of the previous fiscal year. The total assets increased to $17.789 billion, up from $17.152 billion, while total liabilities also rose to $11.915 billion from $11.295 billion.

Ferguson continues to focus on strategic growth, including share repurchase programs, with $236 million spent on repurchases in the first quarter. The company has completed $4.7 billion in share repurchases under its existing program and has authorized a new program for up to $2 billion. Looking ahead, Ferguson anticipates continued growth driven by its operational strategies and market conditions, although it acknowledges potential risks related to economic fluctuations and competitive pressures. The company remains committed to managing its supply chain effectively and adapting to market demands as it progresses through 2026.