Why Watsco, Inc. (WSO) Stock Fell 12.9% on Jul 29, 2026
The clearest new catalyst: EPS and revenue miss.
Why did WSO stock fall?
Watsco stock fell 12.9% on July 29, 2026, after the company reported second-quarter earnings that missed analyst expectations on both profit and revenue, while gross margins contracted sharply due to pricing normalization and A2L refrigerant regulation impacts.
- EPS and revenue miss: Watsco reported earnings per share of $4.00, missing the consensus estimate of approximately $4.39–$4.41, and revenue of $2.1 billion, a 2.1% year-over-year increase that fell short of expectations.
- Gross margin compression: Gross margin declined 180 basis points to 27.5% from 29.3% in the prior-year quarter, driven by normalization of pricing power and industry shifts related to new A2L refrigerant regulations.
- Operating margin deterioration: Operating margin fell to 11.3% from 13.2% year-over-year, resulting in an approximate 12% drop in total operating income.
Initial detection
BestStocks first flagged WSO intraday on Jul 29, 2026; this analysis was finalized after the close using the confirmed −12.9% session move and additional catalyst research.
Show the initial intraday note
Watsco reported earnings and filed a material event (8-K) today, triggering a sharp 15.40% intraday decline to $310.93 from $367.51. Volume surged to 477,888 shares, running 8.62x the expected pace at this time of session, signaling forced selling or negative guidance revision.
What to watch next: Review the full earnings release and 8-K filing for specifics on EPS, revenue, forward guidance, and the nature of the material event; monitor whether the stock stabilizes at support or continues lower into the close.
Other developments that session
Watsco, Inc. (WSO) filed an 8-K on July 29, 2026. The audit did not disclose the specific content of the filing.
Watsco, Inc. (WSO) reported EPS of $4.00 vs. consensus estimate of $4.41 for Q2 FY2026, missing consensus by 9.3%.
Frequently asked questions
Why did Watsco, Inc. (WSO) stock fall on Jul 29, 2026?
Watsco stock fell 12.9% on July 29, 2026, after the company reported second-quarter earnings that missed analyst expectations on both profit and revenue, while gross margins contracted sharply due to pricing normalization and A2L refrigerant regulation impacts.
How much did WSO stock fall on Jul 29, 2026?
WSO fell 12.9% during the Jul 29, 2026 trading session.
What were the main drivers behind WSO's move?
EPS and revenue miss; Gross margin compression; Operating margin deterioration.