• In the past quarter, WD-40 Company reported second-quarter 2026 sales of US$161.67 million, up from US$146.10 million a year earlier, while net income fell to US$20.32 million from US$29.85 million and diluted EPS from continuing operations declined to US$1.50 from US$2.19.
• Despite lower profits over both the quarter and first half of the fiscal year, WD-40 reaffirmed its full-year 2026 guidance, targeting net sales of US$630 million to US$655 million and diluted EPS of US$5.75 to US$6.15.
• With WD-40 reaffirming full-year earnings guidance despite weaker quarterly profitability, we’ll now examine how this update influences its investment narrative.

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WD-40 Investment Narrative Recap

To own WD-40, you need to believe its core maintenance brands can keep earning solid returns while the company manages cost pressures and regional soft spots. The latest quarter showed higher sales but weaker earnings, so the near term catalyst is whether margins stabilize as the year progresses. For now, reaffirmed full year guidance suggests this update does not materially change the biggest risk, which is margin pressure from higher operating expenses and input costs.

The most relevant recent announcement is WD-40’s reaffirmed fiscal 2026 guidance for net sales of US$630 million to US$655 million and diluted EPS of US$5.75 to US$6.15. In the context of softer quarterly profitability, holding this outlook draws attention to whether the company can offset inflation, currency and regional challenges quickly enough to meet those full year targets, which many investors may be watching as the key short term earnings catalyst.

But while guidance is intact, the margin pressures that showed up this quarter are something investors should be aware of, because...

WD-40's narrative projects $747.5 million revenue and $93.0 million earnings by 2029. This requires 6.4% yearly revenue growth and about a $3.7 million earnings increase from $89.3 million today.

Uncover how WD-40's forecasts yield a $264.50 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were previously modeling revenue of about US$752.5 million and earnings near US$98.5 million by 2028, which is a far more upbeat path than consensus. When you compare that to concerns about slower growth in key regions and the latest dip in quarterly profits, it shows how widely views can differ and why it may be worth weighing several possible futures before you decide what this new data means for you.

Explore 4 other fair value estimates on WD-40 - why the stock might be worth as much as 24% more than the current price!

Reach Your Own Conclusion

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your WD-40 research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free WD-40 research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate WD-40's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.