Watts Water Technologies (WTS) Q3 FY2026 earnings: revenue $728 million, up 19.0% on the year

Watts Water Technologies Inc. (WTS) reported revenue of $728 million for Q3 FY2026, the quarter ended 27 September 2026, up 19.0% on the same quarter a year earlier. Net income was $145 million, up 76.9% on the year, and diluted earnings per share $4.34. The figures are the company's own, from the 10-Q it filed with the SEC on 5 November 2026.

Revenue

$728 million

+19.0% on the year · -4.6% on the quarter

Q4 FY2024Q3 FY2026

Operating margin

26.2%

18.2% a year earlier

Q4 FY2024Q3 FY2026

Net income

$145 million

+76.9% on the year · +22.9% on the quarter

Q4 FY2024Q3 FY2026

Diluted EPS

$4.34

+77.1% on the year · +22.9% on the quarter

Q4 FY2024Q3 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 4 raised, 1 kept.

Sales rose 19%, organic 12%: Net sales were $728.0 million against $611.7 million, up 19% reported and 12% organic. Management attributed the growth to higher volume led by data centers and favorable price realization.
Adjusted EPS up 36% to $3.40: Diluted EPS was $4.34 against $2.45, up 77%. Adjusted diluted EPS was $3.40 against $2.50, up 36%. The difference reflects a $0.94 per-share special item.
Adjusted margin up 240 basis points: Adjusted operating margin was 20.9% against 18.5%. Management cited favorable price realization, sales volume leverage and productivity, partly offset by inflation and acquisition dilution.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Revenue	728	763	612	-4.6%	+19.0%
Cost of revenue	327	389	313	-16.0%	+4.4%
Gross profit	401	374	298	+7.2%	+34.4%
Gross margin	55.1%	49.0%	48.8%
Research and development	19.4	20.9	18.8	-7.2%	+3.2%
Selling, general and administrative	210	214	185	-2.1%	+13.4%
Operating income	191	154	111	+23.9%	+71.3%
Operating margin	26.2%	20.2%	18.2%
Interest expense	2.0	2.2	2.7	-9.1%	-25.9%
Pre-tax income	192	154	111	+24.9%	+72.9%
Income tax	46.5	35.4	28.8	+31.4%	+61.5%
Effective tax rate	24.2%	23.0%	25.9%
Net income	145	118	82.2	+22.9%	+76.9%
Net margin	20.0%	15.5%	13.4%
Diluted EPS	$4.34	$3.53	$2.45	+22.9%	+77.1%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Operating cash flow	158	103	122	+53.6%	+29.2%
Capital expenditure	26.2	11.3	11.5	+131.9%	+127.8%
Free cash flow	132	91.6	111	+44.0%	+18.9%
Free cash flow margin	18.1%	12.0%	18.1%
Cash from investing	-26.1	-11.1	-11.5
Cash from financing	-35.9	-116	-22.2
Depreciation and amortisation	16.3	15.8	14.2	+3.2%	+14.8%
Share-based compensation	7.5	8.3	5.6	-9.6%	+33.9%
Buybacks	3.9	4.1	3.9	-4.9%	0.0%
Dividends paid	21.2	21.3	17.4	-0.5%	+21.8%
Dividend per share	$0.63	$0.63	$0.52	0.0%	+21.2%
Diluted shares, weighted	34m	34m	34m	0.0%	0.0%
Shares outstanding at period end	33m	33m	33m	-0.0%	+0.1%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Shareholders' equity	2,319	2,189	1,957	+5.9%	+18.5%
Debt	98.2	108	198	-9.1%	-50.3%
Other liabilities	659	654	571	+0.8%	+15.4%
Total liabilities and equity	3,077	2,952	2,725	+4.2%	+12.9%
Fixed assets	311	296	267	+5.2%	+16.2%
Goodwill	859	858	781	+0.1%	+10.0%
Intangible assets	279	281	247	-0.7%	+12.9%
Cash and equivalents	445	348	458	+27.9%	-2.8%
Receivables	399	404	324	-1.3%	+23.3%
Inventory	577	546	459	+5.5%	+25.7%
Other assets	208	218	190	-4.9%	+9.4%
Total assets	3,077	2,952	2,725	+4.2%	+12.9%

Questions

What was Watts Water Technologies' revenue in Q3 FY2026?

Watts Water Technologies (WTS) reported revenue of $728 million for Q3 FY2026, the quarter ended 27 September 2026, up 19.0% on the same quarter a year earlier.

How much did Watts Water Technologies earn in Q3 FY2026?

Net income for Q3 FY2026 was $145 million, up 76.9% on the year, and diluted earnings per share $4.34.

When did Watts Water Technologies report Q3 FY2026 results?

Watts Water Technologies filed its 10-Q for the quarter ended 27 September 2026 with the SEC on 5 November 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	474	463	527	488	502	472	533	504	548	571	597	544	540	558	644	612	625	677	763	728
Cost of revenue	275	265	287	270	283	254	280	270	292	303	312	286	288	286	318	313	316	351	389	327
Gross profit	199	199	239	218	219	218	253	234	256	268	285	257	253	272	326	298	309	326	374	401
Gross margin	42%	43%	45%	45%	44%	46%	47%	46%	47%	47%	48%	47%	47%	49%	51%	49%	49%	48%	49%	55%
R&D	12.7	11.9	12.3	14.2	21.0	16.1	16.0	15.2	19.8	18.5	17.9	17.6	16.4	16.8	17.4	18.8	20.5	19.2	20.9	19.4
SG&A	136	126	142	136	147	134	151	147	173	170	173	159	163	168	187	185	194	193	214	210
Operating income	62.6	71.5	95.9	80.4	67.2	84.7	100	87.1	78.7	96.7	112	93.2	89.0	87.7	135	111	114	133	154	191
Operating margin	13%	15%	18%	16%	13%	18%	19%	17%	14%	17%	19%	17%	16%	16%	21%	18%	18%	20%	20%	26%
Interest expense	1.4	1.4	1.7	1.9	2.0	1.5	1.7	1.2	3.8	4.2	4.1	3.6	2.8	2.7	2.7	2.7	2.7	2.6	2.2	2.0
Pre-tax income	61.0	69.9	94.2	78.8	64.7	83.5	101	88.1	77.3	95.2	110	92.3	89.0	86.9	135	111	113	131	154	192
Tax rate	34%	22%	26%	26%	-6%	23%	25%	25%	28%	24%	25%	25%	24%	15%	25%	26%	26%	24%	23%	24%
Net income	40.1	54.5	69.7	58.7	68.6	64.7	75.9	65.8	55.7	72.6	82.0	69.1	67.5	74.0	101	82.2	83.7	99.6	118	145
Net margin	8%	12%	13%	12%	14%	14%	14%	13%	10%	13%	14%	13%	12%	13%	16%	13%	13%	15%	16%	20%
Diluted EPS	$1.17	$1.61	$2.07	$1.75	$2.05	$1.93	$2.26	$1.96	$1.67	$2.17	$2.44	$2.06	$2.02	$2.21	$3.01	$2.45	$2.50	$2.97	$3.53	$4.34
Operating cash flow	45.9	-2.0	46.9	41.4	138	33.4	67.1	100	110	45.6	85.3	90.7	140	55.2	69.7	122	155	17.9	103	158
Capital expenditure	6.9	5.6	7.5	7.1	7.9	5.1	6.5	7.4	10.7	10.1	6.8	6.4	12.0	9.6	10.2	11.5	14.4	11.3	11.3	26.2
Free cash flow	39.0	-7.6	39.4	34.3	130	28.3	60.6	93.0	99.2	35.5	78.5	84.3	128	45.6	59.5	111	140	6.6	91.6	132
Buybacks	4.2	42.9	18.2	4.0	4.3	3.7	4.0	4.0	4.3	4.0	4.1	4.9	4.0	3.9	4.0	3.9	4.2	3.8	4.1	3.9
Dividends paid	8.8	9.0	10.3	10.1	10.1	10.1	12.2	12.1	12.1	12.1	14.6	14.4	14.4	14.4	17.6	17.4	17.5	17.5	21.3	21.2
Shares outstanding	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	33m	33m	33m	33m	33m	33m	33m	33m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 27 September 2026, filed 5 November 2026: the filing.