WD-40 stock surges 15% after earnings beat shows strong demand

WD-40 Co. reported Q3 net sales of $195.1 million, up 24% from a year earlier, exceeding long-term growth expectations.

"The results reflect strong execution across our direct markets," Steve Brass, president and chief executive officer at WD-40 Co., said.

Maintenance products, which account for 97% of total sales, rose 26% to $189.7 million. The Americas region posted a 29% gain to $101.2 million, while EMEA increased 17% to $66.6 million. WD-40 Multi-Use product sales climbed $17.2 million in the US and $2.6 million in Latin America, supported by expanded distribution, e-commerce growth, and promotional activity. WD-40 Specialist sales rose 22% on new distribution gains and placement with large retailers. Homecare and Cleaning Products declined 9% as the company prioritizes higher-margin maintenance lines.

The stock surged 15% in pre-market trading Friday. The results offer a counter-narrative to the AI-driven market rally, demonstrating that consumer staples and industrial product companies with strong brand equity can still deliver outsized returns. The company expects low double-digit growth in maintenance products for fiscal 2026.

The company did not disclose specific EPS or consensus figures. Sara Hyzer, vice president and chief financial officer, said the company is positioned for gross margin recovery despite temporary external cost pressures.

The guidance raise signals management expects demand for WD-40's core products to remain strong through year-end. Investors will watch the Q4 earnings call for further detail on margin trends and international expansion progress.

This article is for informational purposes only and does not constitute investment advice.