WD-40 Defies AI-Led Market With A 14.5% Post-Earnings Jump

WD-40 Company shares jumped as much as 14.5% in overnight trading, outpacing many AI stocks after the lubricant maker beat second-quarter estimates and raised its full-year outlook.

Key Points:

WD-40 Earnings

WD-40 posted quarterly revenue of $195.1 million, well above the $173 million Wall Street estimate, as sales increased 24.3% from the same period last year.

The company earned $2.24 per share, exceeding analysts’ forecast of $1.57, while its operating margin rose to 20.7% from 17.4% a year earlier. The improvement showed that WD-40 retained more revenue after covering its main operating costs.

Free cash flow margin fell to 15% from 21.6%, although the latest figure remained above the company’s two-year average. WD-40 has increased annual sales by an average of 8.6% during the past three years, but analysts expect growth to slow to about 3% over the next 12 months.

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WD-40 Outlook

WD-40 raised the midpoint of its full-year revenue forecast to $682.5 million from $642.5 million, an increase of 6.2%. It also lifted the midpoint of its earnings guidance to $6.20 per share, above analysts’ previous expectations.

The results stood apart from a market dominated by artificial intelligence chip companies, whose shares have often moved sharply after earnings reports tied to data center spending. WD-40 does not operate in that sector, but its report showed that demand and cost control can still produce a strong market reaction in a mature consumer business.

Shares closed at $272 after the report, giving the company a market value of about $3.02 billion.

The stock’s overnight gain suggested investors focused on the earnings beat and higher outlook despite concerns that the quarter’s growth rate may be difficult to sustain.

The company’s recent performance also reflects a longer pattern of steady expansion rather than the rapid swings associated with technology stocks. Its three-year sales growth record provides context for the raised forecast, while the expected slowdown indicates that future gains may depend more on execution than on unusually strong quarterly demand.

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