WD-40 (NASDAQ: $WDFC) is a company based in San Diego that is behind the iconic WD-40 multi-use product, which is used for displacing water, lubrication, preventing runs, and cleaning. It also owns brands like Spot Shot stain remover and Lava soap. On Friday, January 9, 2026, WD-40 released its Q1 fiscal 2026 results. Here is a deep dive into those results.
WD-40 Q1 Results
For the first quarter of fiscal 2026, WD-40 reported a 0.6% YoY increase in revenue to $154.4 million, but below forecasts of $158.2 million. Gross profit was up 3.26% YoY to $86.8 million, while cost of sales fell 2.62% YoY to $67.6 million. The company reported a 7.42% YoY decline in operating profit to $23.3 million.
WD-40 reported a net income decline of 7.79% YoY to $17.5 million, for a diluted EPS of $1.28, a 7.91% YoY decline, and below estimates of $1.48.
Balance Sheet Highlights
The company reported a 33.12% YoY decline in cash from operating activities to $10 million, while CAPEX was up 35.31% YoY to $0.9 million, driven by property purchases, equipment, and plant. Cash and cash equivalents dipped 11.53% YoY to $48.6 million, while total liabilities were 11.51% YoY to $195.6 million.
Overall, WD-40 Company saw the top rise slightly, but saw operating profits and net income decline. It missed revenue and EPS estimates, while cash generation weakened slightly. However, liquidity normalized compared to the previous year.
Fiscal 2026 Guidance
Wd-40 Company reaffirmed its previous guidance for fiscal 2026. It expects net sales to grow 5%-9% YoY to around $630 million to $655 million. Full-year gross margin is expected to be at 55%-56.5%, while advertising and promotion investments are expected to be around 6% of net sales.
The company expects an operating income of $103 million to $110 million, representing growth of 5%-12% YoY. It expects a diluted EPS of $5.75-$6.15, which would represent growth of 5%-15% compared to the pro forma results of fiscal 2025.
Dividends And Share Buyback
The company declared a dividend of $1.02 per share for Q1, an over 8% YoY increase from last year. WD-40 Company’s board also approved the extension of a $50 million share buyback plan first approved on June 19, 2023, to a new date of August 31, 2026. As of November 30, 2025, there was $21.8 million remaining under the existing share buyback program.
During Q1, the company bought back $7.8 million worth of shares. Management signaled it aims to accelerate the share buybacks and fully utilize the remaining authorization during fiscal 2026, a reflection of confidence in its long-term fundamentals.
Market Performance
Following the earnings and revenue miss, WDFC shares sank 4.33% to 194.70 as of 1:19 PM in New York. The stock is down 1.12% year to date, and down 15.25% in the past six months. Over the past 12 months, the share price has sunk 18.41%.
The current stock price is a significant discount to its 52-week high of $253.48, below the 50- and 200-day moving averages of $198.12 and $216.31, respectively.
One analyst gives the WDFC stock a moderate buy rating. The analyst forecasts a share price of $300 in the next 12 months, which is a 47.42% upside.
Is WD-40 Company A Buy in 2026?
WD-40 is a quality company with strong fundamentals. Additionally, its strong brand recognition means it is one of those companies that is recession-resistant. However, its current pricing is quite high, with a trailing P/E ratio of 30.42. This is especially so since WD-40 is considered a mature company with moderate growth in sales.
The recent earnings and revenue miss are another important factor to keep in mind. Nevertheless, its moderate buy rating can be justified by its high payout ratio of 55.31%. As such, adding WDFC shares to your portfolio could potentially be a great move for dividend investors.
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