Why WD-40 (WDFC) Is Down 6.8% After Mixed Q3 Margins and Ongoing Share Buybacks

• In July 2026, WD-40 Company reported third-quarter results showing sales of US$195.12 million and net income of US$30.22 million, alongside continued progress on its share repurchase program that has retired 193,425 shares for US$42.94 million since July 2023.
• Despite higher nine-month sales of US$511.21 million, net income over the same period edged lower to US$67.99 million, highlighting how rising costs and margin pressure are tempering the benefits of revenue growth.
• With third-quarter earnings strengthening while nine-month profits softened, we’ll now examine how this margin picture reshapes WD-40’s 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 generating dependable cash flow while management protects margins in the face of rising costs. The latest results show strong third quarter earnings but softer nine month profit, so the most immediate catalyst remains how effectively WD 40 can defend profitability, while the biggest near term risk is that inflation and higher operating expenses further compress margins. This quarter’s news reinforces, rather than changes, that focus.

The completed share repurchase of 193,425 shares for US$42.94 million since July 2023 stands out here. It slightly lifts earnings per share at a time when nine month net income has dipped, and it also ties into bullish analysts’ expectations for modest share count reduction over time. For investors watching margin pressures and capital allocation together, this buyback update is an important piece of the near term catalyst story.

Yet even with earnings up this quarter, investors should be aware that persistent cost pressures could still...

Read the full narrative on WD-40 (it's free!)

WD-40's narrative projects $826.4 million revenue and $87.9 million earnings by 2029. This requires 7.0% yearly revenue growth and an earnings decrease of $1.1 million from $89.0 million today.

Uncover how WD-40's forecasts yield a $271.67 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Before this earnings release, the most optimistic analysts were banking on WD 40 lifting revenue toward about US$779.1 million and earnings to roughly US$103.4 million by 2029, but today’s mixed margin picture and distributor related risks remind you that those upbeat forecasts sit at the high end of what people expect and could shift as the new numbers are fully absorbed.

Explore 3 other fair value estimates on WD-40 - why the stock might be worth less than half the current price!

Form Your Own Verdict

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• 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.

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