Shares of WD-40 Company (NASDAQ:WDFC) surged in late trading on Thursday after the firm reported third-quarter earnings that topped analyst estimates, raised its full-year forecast, and announced a new $100 million share buyback program. The stock closed regular trading at $239.42, down 2.91%, but jumped to $273.59 in after-hours trading, a gain of 14.27% and above its previous 52-week high of $253.24.
Strong Core Performance
The company's third-quarter results were driven entirely by its core maintenance products, with homecare and cleaning lines pulling revenue in the opposite direction. This is significant because WD-40's stock valuation is based on its focused, high-margin maintenance brand, not as a diversified household products company.
Adjusted earnings per share (EPS) came in at $2.33, well above the analyst consensus of $1.57. Revenue reached $195.1 million, beating the $170.17 million consensus. GAAP diluted EPS was $2.24, up from $1.54 in the same period last year. Net sales increased 24%, and operating income jumped 47%, according to the company's SEC filing.
Sales Breakdown
Maintenance products generated $39.3 million in sales, accounting for approximately 103% of the company's total $38.2 million sales increase. The WD-40 Multi-Use Product alone contributed $31.8 million. In contrast, homecare and cleaning product sales fell by $1.1 million, or 17%, and now represent just 3% of total quarterly sales.
Foreign exchange provided a tailwind, adding about $7.3 million to net sales in the quarter. On a constant-currency basis, total sales would have grown 20% instead of the reported 24%, and maintenance-product sales would have risen 22%.
Regional Performance
The Americas region was the primary growth driver, with sales up $23.1 million, representing about 60% of the total gain. This was fueled by stronger demand for WD-40 Multi-Use Product in the U.S. and Latin America. In the EIMEA region (Europe, India, Middle East, and Africa), management cited distributor restocking ahead of potential supply or price moves. China benefited from promotions, expanded online and industrial reach, and some forward buying before price increases.
Outlook and Buyback
CEO Steve Brass highlighted the "operating leverage inherent" in the business, noting that sales grew faster than costs. The company also reversed its previous decision to exit the Americas homecare and cleaning brands, now including them in fiscal 2026 guidance.
WD-40 now forecasts reported fiscal 2026 net sales between $675 million and $690 million, with non-GAAP diluted EPS ranging from $6.05 to $6.35. The non-GAAP figure excludes a one-time $1.3 million amortization catch-up expense. The board approved a new share buyback program of up to $100 million, starting September 1.
The buyback is notable given WD-40's market capitalization of about $3.3 billion. The stock trades at a higher earnings multiple (P/E 40.65) compared to larger staples peers like Clorox (NYSE:CLX, P/E ~15.1) and Church & Dwight (NYSE:CHD, P/E ~31.5), leaving less room for error.
Risks and Analyst Views
However, some of the quarter's growth may be temporary. The company flagged customer inventory builds and early orders ahead of price hikes in EIMEA and Asia-Pacific. It also lowered its gross-margin forecast to 54.5% to 55.5%, citing a 40-basis-point impact from reclassifying homecare and 60 basis points from higher-than-expected cost increases. Most of the benefit from pricing and cost control is expected in the next fiscal year, not the current one.
William Blair analyst Jon Andersen, who earlier this year highlighted a "long-duration market penetration opportunity" for WD-40, had a fiscal 2026 EPS estimate of $6.04, which now sits below the midpoint of the company's new guidance range.
Friday's regular session will be key to determining whether investors view the after-hours surge as a justified catch-up to stronger core demand or as a valuation-driven sell-off. The market's reaction suggests traders were looking for confirmation that WD-40 remains a growth story centered on its maintenance products—a narrative the company delivered, albeit with some caveats.
