Watsco lowered its 2026 earnings forecast amid weaker results and declining revenue, though institutional investors increased their stake.

Zacks Research lowered Watsco’s Q1 2026 EPS forecast to $1.74 from $2.00, citing weaker near-term performance after the company reported $1.68 EPS in Q4 2025, missing estimates, with a 9.9% year-over-year revenue drop. Full-year 2026 EPS is now projected at $14.62, with 2027 revised down to $13.83, though 2028 outlook improves to $15.63. Despite a "Hold" rating and a 3.2% dividend yield, institutional ownership rose as Capital International Investors increased its stake by 741% to 5.64%. The stock trades at $379.47 with a market cap of $15.39 billion.