Key Highlights

  • WD-40 Company (NASDAQ:WDFC) reported fiscal fourth-quarter 2026 diluted EPS of USD 1.06 on Wednesday, October 21, 2026, down from USD 1.56 and below the consensus estimate of USD 1.13.
  • Gross margin fell to 52.8% from 54.7%, even as net sales rose 8% to USD 176.8 million, and net income dropped 32% to USD 14.4 million.
  • Chief executive Steve Brass said the company believes the fiscal fourth quarter of 2026 "marked the low point for gross margin", and fiscal 2027 guidance calls for 54.0% to 55.5%.
  • Fiscal 2027 guidance points to diluted EPS of USD 6.40 to USD 6.70, which the company describes as growth of 5% to 10%, on net sales growth of 4% to 7%.

Sales Up, Profit Down in the Fourth Quarter

WD-40 Company (NASDAQ:WDFC), the San Diego-based maker of WD-40 Multi-Use Product and other maintenance products, reported fiscal fourth-quarter 2026 results on Wednesday, October 21, 2026. Net sales rose 8% to USD 176.8 million, or 7% in constant currency. Maintenance products grew 9% to USD 170.5 million, while homecare and cleaning products fell 18% to USD 6.3 million, mainly reflecting a UK divestiture. Gross margin fell to 52.8% from 54.7%. Net income declined 32% to USD 14.4 million, and diluted EPS fell to USD 1.06 from USD 1.56, against the consensus estimate of USD 1.13. Asia-Pacific sales rose 13%, the EIMEA region covering Europe, India, the Middle East and Africa rose 10% and the Americas rose 5%.

How Gross Margin Sets the Earnings Path

For WD-40 Company (NASDAQ:WDFC), gross margin is the main profit lever, because advertising and other operating costs are planned largely as a share of sales. On simple arithmetic, the 1.9 point fall in gross margin on USD 176.8 million of sales removed about USD 3.4 million of gross profit in the quarter. Full-year gross margin still reached 55.3%, against 55.1% a year earlier, so the fourth quarter stood out. Fiscal 2026 net sales rose 11% to USD 688.0 million. Management expects recovery: fiscal 2027 guidance of 54.0% to 55.5% sits above the fourth-quarter level, and operating income is guided at USD 114 million to USD 120 million. Advertising and promotion should run near 6% of net sales, with a tax rate of 22.5% to 23.5%.

Risks and What to Watch

The first risk for WD-40 Company (NASDAQ:WDFC) is that gross margin does not recover from 52.8%, since Steve Brass presented the low point as a view based on current information rather than a firm commitment. The second is the earnings comparison: fiscal 2026 diluted EPS fell 9% to USD 6.08, as fiscal 2025 included a USD 11.9 million tax benefit, while non-GAAP EPS rose 6% to USD 6.18. The third is growth, with fiscal 2027 sales guidance of 4% to 7% below the 11% delivered in fiscal 2026. Currency added about one point to fourth-quarter sales growth. Investors should watch the USD 1.02 quarterly dividend payable on Friday, October 30, 2026 and buybacks under the USD 100 million programme effective since Tuesday, September 1, 2026.

Where Things Stand

The answer is that WD-40 Company (NASDAQ:WDFC) believes 52.8% was the gross margin low, and its fiscal 2027 guide of 54.0% to 55.5% builds in a recovery. The fourth quarter missed the USD 1.13 consensus estimate with USD 1.06 of diluted EPS, despite 8% sales growth. Guidance of USD 6.40 to USD 6.70 sets the bar for the year. The next catalysts are the dividend payment on Friday, October 30, 2026 and first-quarter fiscal 2027 margins. Guidance is a company forecast, not a guarantee, and this is not investment advice.