WD-40 (WDFC) has just posted Q2 2026 revenue of US$161.7 million. Investors looking at the broader picture will see trailing 12 month revenue at about US$636.5 million and basic EPS of US$6.59 paired with net income of US$89.3 million. The company has seen quarterly revenue move from US$146.1 million in Q2 2025 to US$161.7 million in Q2 2026, with basic EPS across recent quarters ranging from about US$1.29 to US$2.20. This sets up the latest print as part of a steady, margin conscious story rather than a single quarter outlier.

See our full analysis for WD-40.

With the latest earnings numbers on the table, the next step is to see how they line up against the widely held narratives around WD-40’s growth, income appeal and margin profile.

Margins Ease Back From 13.9% To 12.5%

• Over the last 12 months, WD-40 reported a net profit margin of 12.5%, compared with 13.9% in the prior year, on trailing revenue of US$636.5 million and net income of US$89.3 million.
• Consensus narrative expects revenue to grow about 6.4% a year with profit margins moving from around 14.4% to 12.4%, and the recent shift from 13.9% to 12.5% already lines up with that softer margin view.
  • On the one hand, analysts link margin pressure to factors like higher operating expenses and currency effects, which fits with the observed margin step down.
  • On the other hand, the same view points to product premiumization and divesting lower margin brands as potential support for margins over time, which is not yet visible in the current 12.5% level.

High P/E Of 36.2x Versus Industry 17.5x

• WD-40 trades on a P/E of 36.2x, which is more than double the Global Household Products industry average of 17.5x and above the peer average of 17.2x, with the current share price at US$214.01.
• Bears argue that this high multiple plus a share price above the DCF fair value of about US$82.05 leaves little room for slower growth, and the recent margin slip from 13.9% to 12.5% gives that concern more weight.
  • The bearish narrative points to modest earnings growth expectations of roughly 3.9% a year, which is relatively low compared with a P/E that is more than 2x industry levels.
  • With the price sitting well above the DCF fair value of US$82.05, skeptics see valuation risk if revenue growth around 6% a year and current margins do not improve from recent trends.

Skeptics point to the rich 36.2x P/E and margin drift to question how much upside is left for WD-40 investors. 🐻 WD-40 Bear Case

Modest Growth Paired With 1.91% Dividend Yield

• Trailing figures show a dividend yield of 1.91%, earnings forecast around 3.9% annual growth and revenue forecast near 6.0% a year, with trailing 12 month EPS of US$6.59 and net income of about US$89.3 million.
• Supporters of the bullish view highlight the combination of this 1.91% yield, modest growth and high earnings quality, arguing that WD-40’s global expansion and premium formats could justify investors paying up despite the 36.2x P/E.
  • Bullish assumptions include revenue growth in the mid single digits and earnings in the high US$90 million range over time, which broadly lines up with the forecasted 6% revenue and mid US$80 million to US$90 million earnings run rate today.
  • Where the tension lies is that the bullish camp also leans on relatively high future P/E multiples compared with an industry average near the high teens, while margins have already eased from 13.9% to 12.5% over the last year.

Supporters point to WD-40’s 1.91% yield and global runway as reasons the market might tolerate a 36.2x P/E for longer. 🐂 WD-40 Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for WD-40 on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Given the mix of bullish and bearish takes, it is worth seeing the numbers for yourself and deciding how comfortable you are with the current setup. To round out that view, take a moment to review the 2 key rewards

See What Else Is Out There

WD-40 combines modest growth, easing margins from 13.9% to 12.5%, and a 36.2x P/E, which some investors see as a rich setup.

If that mix of softer profitability and a full valuation makes you cautious, compare it with companies screened for stronger value using the 59 high quality undervalued stocks.

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.