Ferguson Enterprises (FERG) traded lower Tuesday after releasing first-quarter results for the period ended March 31, 2026. The company reported net sales of $7.47 billion, up 3.6% year over year, and diluted EPS of $2.13, up 23.1%, as gross margin improved to 31.0% and operating margin rose to 8.2%. (corporate.ferguson.com)

Despite a solid start to the year, the company reiterated its full-year calendar 2026 outlook, which includes low- to mid-single-digit net sales growth and an adjusted operating margin of 9.4% to 9.8%. With the stock having priced in a stronger outlook shift, the lack of a guidance raise appeared to disappoint, especially as management said residential end markets remained challenged, with new residential construction weak and RMI still soft. (corporate.ferguson.com)

In the U.S., Ferguson posted 3.5% sales growth, driven by non-residential strength (non-residential revenue up 8%) while residential revenue was down 1% amid weak end-market conditions. The company also emphasized ongoing large capital project activity and growth in open order volumes and bidding activity, which helped offset housing softness. (corporate.ferguson.com)

Ferguson said it repurchased $236 million of stock during the quarter and announced a new authorization to repurchase up to $2.0 billion of shares, replacing the prior program, while maintaining net debt to adjusted EBITDA of 1.0x. The company also declared a $0.89 quarterly dividend payable July 8, 2026 to holders of record as of May 15, 2026. (corporate.ferguson.com)