Revenue growth has reversed to -2.0% in 2026Q3, while operating margins have contracted to 8.2% from a 10.9% peak in 2025Q4, suggesting limited scalability during the current construction downturn.
| Metric | TTM | Jul'25 | Jul'24 | Jul'23 | Jul'22 | Jul'21 | Jul'20 | Jul'19 | Jul'18 | Jul'17 | Jul'16 | Jul'15 | Jul'14 | Jul'13 | Jul'12 | Jul'11 | Jul'10 | Jul'09 | Jul'08 | Jul'07 | Jul'06 | Jul'05 | Jul'04 | Jul'03 | Jul'02 | Jul'01 | Jul'00 | Jul'99 | Jul'98 | Jul'97 | Jul'96 |
|---|
| Sales/Revenue | 31.63B | 30.76B | 29.64B | 29.73B | 28.57B | 22.79B | 19.94B | 22.01B | 20.75B | 19.28B | 16.58B | 20.8B | 20.75B | 20.05B | 21.08B | 22.25B | 20.73B | 24.13B | 29.38B | 33.01B | 26.45B | 20.8B | 18.45B | 13.24B | 12.46B | 10.25B | 9.6B | 8.92B | 7.78B | 7.55B | 6.72B |
| Revenue Growth % | 4.71% | 3.8% | -0.33% | 4.09% | 25.33% | 14.3% | -9.4% | 6.06% | 7.61% | 16.3% | -20.28% | 0.26% | 3.5% | -4.93% | -5.24% | 7.35% | -14.09% | -17.87% | -11.01% | 24.79% | 27.16% | 12.73% | 39.36% | 6.25% | 21.63% | 6.7% | 7.63% | 14.74% | 3.02% | 12.41% | 10.81% |
| Cost of Goods Sold | 21.91B | 21.33B | 20.58B | 20.71B | 19.81B | 15.81B | 13.96B | 15.55B | 14.71B | 13.7B | 11.84B | 14.98B | 14.98B | 14.48B | 15.28B | 16.04B | 15B | 17.48B | 21.08B | 23.81B | 19.1B | 14.34B | 13.37B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 69.33% | 69.45% | 69.65% | 69.35% | 69.38% | 69.99% | 70.65% | 70.88% | 71.05% | 71.38% | 72.04% | 72.23% | 72.22% | 72.45% | 72.1% | 72.38% | 72.46% | 71.78% | 72.14% | 72.2% | 68.94% | 72.44% | - | - | - | - | - | - | - | - |
| Gross Profit | 9.72B | 9.44B | 9.05B | 9.03B | 8.76B | 6.98B | 5.98B | 6.46B | 6.04B | 5.58B | 4.75B | 5.82B | 5.76B | 5.57B | 5.81B | 6.21B | 5.59B | 6.64B | 8.29B | 9.2B | 7.35B | 5.68B | 5.09B | 13.24B | 12.46B | 10.25B | 9.6B | 8.92B | 7.78B | 7.55B | 6.72B |
| Gross Margin % | 30.74% | 30.67% | 30.55% | 30.35% | 30.65% | 30.62% | 30% | 29.34% | 29.12% | 28.95% | 28.62% | 27.96% | 27.77% | 27.78% | 27.55% | 27.89% | 26.98% | 27.54% | 28.22% | 27.86% | 27.8% | 27.33% | 27.56% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | 4.22% | 0.31% | 3.07% | 25.44% | 16.66% | -7.36% | 6.85% | 8.26% | 17.63% | -18.4% | 0.95% | 3.48% | -4.13% | -6.42% | 11% | -15.85% | -19.86% | -9.85% | 25.05% | 29.36% | 11.79% | -61.6% | 6.25% | 21.63% | 6.7% | 7.63% | 14.74% | 3.02% | 12.41% | 10.81% |
| Operating Expenses | 6.82B | 6.83B | 6.4B | 6.37B | 5.94B | 5.03B | 4.61B | 5.06B | 4.68B | 4.11B | 3.81B | 4.95B | 4.57B | 4.81B | 5.47B | 5.46B | 5.4B | 7.66B | 7.19B | 7.66B | 5.8B | 4.18B | 4.03B | 12.53B | 11.78B | 9.69B | 9.07B | 8.45B | 7.32B | 7.11B | 6.33B |
| OpEx % of Revenue | - | 22.2% | 21.6% | 21.41% | 20.78% | 22.07% | 23.12% | 22.98% | 22.57% | 21.29% | 22.96% | 23.79% | 22.03% | 24.01% | 25.97% | 24.52% | 26.04% | 31.74% | 24.48% | 23.22% | 21.91% | 20.07% | 21.83% | 94.61% | 94.51% | 94.54% | 94.47% | 94.72% | 94.17% | 94.25% | 94.29% |
| Selling, General & Admin | 6.52B | 6.38B | 6.07B | 5.92B | 5.63B | 4.73B | 4.33B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.4B | 5.17B | 5.55B | 6.02B | 5.52B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | - | 20.73% | 20.47% | 19.91% | 19.73% | 20.76% | 21.71% | - | - | - | - | - | - | - | - | - | 26.04% | 21.45% | 18.89% | 18.24% | 20.88% | - | - | - | - | - | - | - | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.25M | 3.89M | 4.57M | 5.58M | 6.85M |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 0.02% | 0.04% | 0.06% | 0.07% | 0.1% |
| Other Operating Expenses | 3M | 453M | 335M | 446M | 301M | 298M | 282M | 5.06B | 4.68B | 4.11B | 3.81B | 4.95B | 4.57B | 4.81B | 5.47B | 5.46B | 0 | 2.48B | 1.64B | 1.64B | 272.06M | 4.18B | 4.03B | 12.53B | 11.78B | 9.69B | 9.07B | 8.45B | 7.32B | 7.11B | 6.32B |
| Operating Income | 2.9B | 2.61B | 2.65B | 2.66B | 2.82B | 1.95B | 1.37B | 1.4B | 1.36B | 1.48B | 939.47M | 867.48M | 1.19B | 755.86M | 333.05M | 749.98M | -309.25M | -1.01B | 1.1B | 1.53B | 1.56B | 1.23B | 1.06B | 713.56M | 683.87M | 559.28M | 531.19M | 470.84M | 453.22M | 433.69M | 383.52M |
| Operating Margin % | 9.18% | 8.47% | 8.95% | 8.94% | 9.87% | 8.56% | 6.88% | 6.37% | 6.55% | 7.66% | 5.67% | 4.17% | 5.75% | 3.77% | 1.58% | 3.37% | -1.49% | -4.2% | 3.75% | 4.64% | 5.89% | 5.92% | 5.73% | 5.39% | 5.49% | 5.46% | 5.53% | 5.28% | 5.83% | 5.75% | 5.71% |
| Operating Income Growth % | - | -1.73% | -0.26% | -5.71% | 44.62% | 42.13% | -2.14% | 3.09% | -7.98% | 57.32% | 8.3% | -27.22% | 57.69% | 126.95% | -55.59% | 342.51% | 69.45% | -192% | -28.18% | -1.66% | 26.52% | 16.5% | 48.16% | 4.34% | 22.28% | 5.29% | 12.82% | 3.89% | 4.5% | 13.08% | -4.02% |
| EBITDA | 3.29B | 2.98B | 2.99B | 2.98B | 3.12B | 2.25B | 1.65B | 1.69B | 1.6B | 1.91B | 1.32B | 1.51B | 1.45B | 1.1B | 1.18B | 1.19B | 130.15M | -449.42M | 1.71B | 2.16B | 1.91B | 1.45B | 1.25B | 863.52M | 828.56M | 680.91M | 642.02M | 571.17M | 542.09M | 517.02M | 461.81M |
| EBITDA Margin % | 10.39% | 9.68% | 10.08% | 10.02% | 10.93% | 9.86% | 8.29% | 7.68% | 7.73% | 9.88% | 7.95% | 7.28% | 7.01% | 5.49% | 5.59% | 5.36% | 0.63% | -1.86% | 5.81% | 6.55% | 7.22% | 6.96% | 6.79% | 6.52% | 6.65% | 6.64% | 6.69% | 6.4% | 6.97% | 6.85% | 6.88% |
| EBITDA Growth % | 15.13% | -0.27% | 0.23% | -4.52% | 38.83% | 35.91% | -2.13% | 5.3% | -15.75% | 44.46% | -12.96% | 4.19% | 32.15% | -6.62% | -1.24% | 816.71% | 128.96% | -126.35% | -21.17% | 13.29% | 31.93% | 15.44% | 45.19% | 4.22% | 21.68% | 6.06% | 12.4% | 5.36% | 4.85% | 11.95% | -1.85% |
| D&A (Non-Cash Add-back) | 383M | 373M | 335M | 321M | 301M | 298M | 282M | 288M | 245M | 427M | 379.22M | 647.49M | 262.06M | 344.4M | 845.19M | 443.1M | 439.4M | 563.03M | 604.8M | 630.85M | 351.26M | 215.79M | 196.6M | 149.96M | 144.69M | 121.63M | 110.83M | 100.33M | 88.88M | 83.33M | 78.29M |
| EBIT | 2.95B | 2.69B | 2.64B | 2.65B | 2.82B | 1.96B | 1.36B | 1.42B | 1.25B | 1.49B | 952.68M | 853.43M | 1.22B | 780.24M | 358.19M | 746.7M | -390.88M | -932.25M | 1.2B | 1.65B | 1.65B | 1.28B | 1.11B | 744.49M | 752.85M | 507.87M | 545.59M | 564.2M | 512.85M | 487.66M | 432.71M |
| Net Interest Income | -189M | -190M | -179M | -184M | -111M | -98M | -93M | -80M | -59M | -64M | -50.46M | -59.29M | -44.33M | -74.67M | -31.58M | -67.07M | -81.6M | -197.96M | -263.73M | -244.2M | -121.45M | -66.67M | -37M | -27.38M | -41.45M | -50.13M | -42.44M | -5.83M | 3.43M | -328.06K | -5.45M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 17M | 8M | 0 | 0 | 1.56M | 1.64M | 4.57M | 3.14M | 11.49M | 21.98M | 113.12M | 142.77M | 118.03M | 91.55M | 47.37M | 46.29M | 30.93M | 68.98M | 43.01M | 49.79M | 61.75M | 68.29M | 53.97M | 49.19M |
| Interest Expense | 189M | 190M | 179M | 184M | 111M | 98M | 93M | 97M | 67M | 64M | 50.46M | 60.85M | 45.97M | 79.24M | 34.74M | 78.25M | 103.57M | 311.09M | 406.5M | 362.23M | 213M | 114.04M | 83.29M | 58.31M | 110.43M | 93.14M | 92.23M | 67.59M | 64.86M | 54.29M | 54.63M |
| Other Income/Expense | -226M | -183M | -188M | -195M | -112M | -88M | -100M | -78M | -173M | -55M | -47.57M | -74.89M | -49.03M | -54.86M | -21.99M | -108.31M | -205.65M | -267.31M | -309.34M | -242.17M | -121.45M | -64.91M | -38.45M | -27.38M | -41.45M | -144.56M | -77.83M | 25.77M | -5.23M | -328.06K | -5.45M |
| Pretax Income | 2.68B | 2.42B | 2.46B | 2.46B | 2.71B | 1.86B | 1.27B | 1.32B | 1.19B | 1.42B | 891.9M | 792.59M | 1.14B | 701M | 311.06M | 641.67M | -514.9M | -1.28B | 791.2M | 1.29B | 1.44B | 1.17B | 1.02B | 686.18M | 642.42M | 414.73M | 453.36M | 496.61M | 447.99M | 433.36M | 378.07M |
| Pretax Margin % | 8.47% | 7.88% | 8.31% | 8.29% | 9.48% | 8.17% | 6.38% | 6.02% | 5.72% | 7.38% | 5.38% | 3.81% | 5.51% | 3.5% | 1.48% | 2.88% | -2.48% | -5.3% | 2.69% | 3.91% | 5.43% | 5.61% | 5.52% | 5.18% | 5.15% | 4.05% | 4.72% | 5.57% | 5.76% | 5.74% | 5.63% |
| Income Tax | 605M | 567M | 729M | 575M | 609M | 232M | 299M | 263M | 346M | 370M | 277.48M | 291.76M | 328M | 268.21M | 216.8M | 180.52M | 59.65M | -56.8M | 311.32M | 325.6M | 433.47M | 326.32M | 295.36M | 205.53M | 191.62M | 151.11M | 166.62M | 173.43M | 159.79M | 143.03M | 124.68M |
| Effective Tax Rate % | 22.59% | 23.4% | 29.59% | 23.34% | 22.49% | 12.46% | 23.51% | 19.86% | 29.15% | 26% | 31.11% | 36.81% | 28.7% | 38.26% | 69.7% | 28.13% | -11.59% | 4.44% | 39.35% | 25.24% | 30.17% | 27.97% | 28.99% | 29.95% | 29.83% | 36.44% | 36.75% | 34.92% | 35.67% | 33.01% | 32.98% |
| Net Income | 2.07B | 1.86B | 1.74B | 1.89B | 2.12B | 1.47B | 961M | 1.11B | 1.27B | 920M | 870.76M | 332.32M | 852.11M | 444.09M | 89.55M | 444.74M | -533.74M | -1.72B | 146.74M | 964.59M | 1B | 840.35M | 723.37M | 480.65M | 450.81M | 263.62M | 286.14M | 322.38M | 287.55M | 289.67M | 252.62M |
| Net Margin % | 6.55% | 6.03% | 5.85% | 6.35% | 7.43% | 6.46% | 4.82% | 5.03% | 6.11% | 4.77% | 5.25% | 1.6% | 4.11% | 2.22% | 0.42% | 2% | -2.58% | -7.11% | 0.5% | 2.92% | 3.79% | 4.04% | 3.92% | 3.63% | 3.62% | 2.57% | 2.98% | 3.61% | 3.7% | 3.84% | 3.76% |
| Net Income Growth % | 29% | 6.97% | -8.15% | -10.98% | 44.16% | 53.17% | -13.27% | -12.55% | 37.72% | 5.65% | 162.02% | -61% | 91.88% | 395.93% | -79.87% | 183.33% | 68.89% | -1269.21% | -84.79% | -3.86% | 19.39% | 16.17% | 50.5% | 6.62% | 71.01% | -7.87% | -11.24% | 12.11% | -0.73% | 14.67% | -3.58% |
| Net Income (Continuing) | 2.07B | 1.86B | 1.74B | 1.89B | 2.1B | 1.63B | 973M | 1.06B | 841M | 1.05B | 614.42M | 500.83M | 814.92M | 444.09M | 94.74M | 461.15M | -574.55M | -1.15B | 479.87M | 964.59M | 1B | 840.35M | 723.37M | 480.65M | 450.81M | 263.62M | 286.74M | 323.19M | 288.2M | 290.33M | 253.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 23M | -158M | -12M | 47M | 426M | -133M | 67.15M | -76.49M | 37.2M | 0 | 0 | 0 | 40.82M | -565.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1M | -3M | -2.64M | 10.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.25M | 5.02M | 4.41M | 4.1M | 4.05M |
| EPS (Diluted) | 10.64 | 9.32 | 8.53 | 9.12 | 9.69 | 6.55 | 4.24 | 4.78 | 5.12 | 4.14 | 3.55 | 1.35 | 3.22 | 1.71 | 0.34 | 1.78 | -2.16 | -9.32 | 0.25 | 1.70 | 1.92 | 1.62 | 1.40 | 0.94 | 0.88 | 0.52 | 0.57 | 0.64 | 0.57 | 0.58 | 0.52 |
| EPS Growth % | 31.84% | 9.26% | -6.47% | -5.88% | 47.94% | 54.48% | -11.3% | -6.64% | 23.67% | 16.62% | 162.96% | -58.07% | 88.3% | 402.94% | -80.9% | 182.41% | 76.82% | -3828% | -85.29% | -11.46% | 18.52% | 15.71% | 48.94% | 6.82% | 69.23% | -8.77% | -10.94% | 12.28% | -1.72% | 11.54% | -3.7% |
| EPS (Basic) | - | 9.33 | 8.55 | 9.15 | 9.75 | 6.59 | 4.27 | 4.81 | 5.16 | 4.17 | 3.58 | 1.35 | 3.39 | 1.73 | 0.34 | 1.79 | -2.16 | -9.32 | 0.26 | 1.71 | 1.93 | 1.63 | 1.42 | 0.95 | 0.89 | 0.52 | 0.57 | 0.64 | 0.57 | 0.58 | 0.52 |
| Diluted Shares Outstanding | 194.8M | 199.2M | 203.5M | 207.2M | 218.9M | 224.8M | 226.9M | 231.9M | 247.5M | 239.78M | 241.67M | 246.51M | 252.95M | 263.56M | 262.39M | 249.93M | 247.3M | 184.16M | 575.28M | 567.38M | 523.54M | 520.38M | 516.87M | 511.87M | 506.79M | 505.38M | 504.16M | 503.46M | 501M | 498.54M | 487.85M |
| Basic Shares Outstanding | 194.6M | 198.9M | 202.9M | 206.4M | 217.7M | 223.5M | 224.8M | 230.2M | 245.7M | 238.07M | 240.16M | 245.65M | 251.62M | 261.09M | 259.73M | 247.83M | 247.3M | 184.16M | 574.4M | 564.75M | 519.15M | 514.94M | 510.91M | 507.84M | 506.09M | 504.51M | 503.63M | 502.75M | 501M | 498.54M | 487.85M |
| Dividend Payout Ratio | - | 26.35% | 45.19% | 37.64% | 25.35% | 70.38% | 34.03% | 40.16% | 107.26% | 35.66% | 36.12% | 104.23% | 94.22% | 178.78% | 249.12% | 15.5% | - | - | 292.93% | 39.97% | 28.83% | 31.89% | 32.97% | 37.87% | - | 297.4% | - | - | - | - | - |
Cyclical construction demand sensitivity
As indicated by the most recent quarterly data, Ferguson's revenue growth has turned negative at -2.0% in 2026Q3, marking a sharp reversal from the 9.1% expansion observed in 2026Q2 and highlighting the underlying volatility inherent in the company's exposure to US residential and commercial construction cycles.
The recent contraction suggests that the company is struggling to maintain organic volume growth as the broader construction market cools. Investors should monitor whether this deceleration is a temporary pause in project activity or a more structural shift in demand as interest rate sensitivity impacts new project starts.
Based on reported financial statements, Ferguson maintained a gross margin of 31.0% in 2026Q3, demonstrating a degree of pricing stability that persists despite the broader industry trend of margin compression following the post-pandemic period of elevated commodity prices and supply chain-driven inventory gains.
The ability to hold gross margins above 30% suggests that Ferguson retains significant pricing power through its value-added distribution model and localized service density. However, the lack of expansion in these margins implies that the company may be reaching a ceiling in its ability to pass through cost increases to customers.
According to the income statement, operating margins contracted to 8.2% in 2026Q3 from a peak of 10.9% in 2025Q4, revealing that the company's fixed cost base is currently scaling less efficiently as revenue growth turns negative and overhead expenses remain relatively sticky at $1.6 billion.
The inability to reduce SG&A in proportion to the recent revenue decline indicates that Ferguson's operating leverage is currently working against the bottom line. This trend warrants further investigation into management's ability to flex its cost structure during periods of lower demand to protect operating income.
As reported in recent filings, Ferguson's net income of $414 million in 2026Q3 reflects a net margin of 5.5%, which remains below the 8.2% peak seen in 2025Q4, suggesting that earnings quality is currently being pressured by both top-line contraction and rising operational costs.
The variability in EPS, which swung from $1.38 in 2025Q2 to $3.54 in 2025Q4, highlights the sensitivity of the company's bottom line to non-operating items and potential inventory accounting adjustments. Investors should be cautious of the impact that stock-based compensation and potential restructuring costs may have on the consistency of reported earnings.
While management emphasizes a defensive moat, the recent 2026Q3 revenue decline of 2.0% suggests that Ferguson's reliance on bolt-on acquisitions may be masking a deterioration in core organic volume, potentially leaving the company vulnerable to a sustained downturn in the US residential and infrastructure markets.
Short-term observers might argue that the company's valuation premium is unjustified if organic growth continues to trend downward. The reliance on acquisitions to drive top-line performance may eventually face diminishing returns if the company cannot integrate these smaller entities effectively while maintaining its core operating margins.
Quick answers to the most common questions about buying FERG stock.
For fiscal year 2025, Ferguson plc (FERG) reported total revenue of $30.76B. This represents a 358.1% increase compared to $6.72B in 1996.
Ferguson plc (FERG) is profitable, generating $1.86B in net income for the fiscal year ending 2025 with a net profit margin of 6.0%.
Ferguson plc (FERG) reported an operating income of $2.61B, resulting in an operating profit margin of 8.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Ferguson plc (FERG) generated $9.44B in gross profit for the year, representing a gross profit margin of 30.7%. This demonstrates the company's core pricing power and production efficiency.