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WD-40 (WDFC) is trading lower today despite reporting a sizable EPS and revenue beat for Q2 (Feb). Revenue rose 10.7% yr/yr to $161.7 mln, above analyst expectations and marking its highest growth rate in six quarters. The company also reaffirmed FY26 guidance.

• Revenue increased 10.7% yr/yr to $161.7 mln, representing the strongest growth in six quarters and topping analyst estimates. Maintenance products, the company's core focus, delivered 6% growth in constant currency (CC).
• Sales in the Americas grew 10% yr/yr to $71.8 mln, driven primarily by a 15% increase in U.S. maintenance product sales. EIMEA sales rose 9% yr/yr to $64.9 mln, but declined 3% in constant currency. Asia-Pacific sales jumped 19% yr/yr to $25.0 mln, fueled by a 21% increase in maintenance product sales, particularly in China.
• WD-40 Specialist products contributed to growth across all regions. This is a line of professional-grade, high-performance lubricants, cleaners, and rust preventatives designed for heavy-duty industrial and maintenance tasks.
• The company expects strong promotional activity to drive high single-digit to low double-digit growth in the Americas for FY26.
• WDFC reaffirmed FY26 guidance despite the Q2 upside and cited geopolitical uncertainties, including in the Middle East.

Briefing.com Analyst Insight:

WD-40 delivered a solid quarter with broad-based revenue strength and continued momentum in its core maintenance products business. However, the market reaction suggests some disappointment tied to the company's decision to reaffirm, rather than raise, FY26 guidance following the upside Q2 results. While management pointed to geopolitical uncertainty, particularly in the Middle East, as a reason for caution, investors may have been hoping for a more confident outlook. Additionally, some skepticism may stem from the quality of growth, as foreign exchange tailwinds and a high proportion of international sales are playing a supportive role. Even so, WD-40's strong U.S. momentum, expanding Specialist product line, and improving trends in Asia-Pacific provide a constructive backdrop heading into the second half of the fiscal year.