Ferguson Enterprises Inc. (NYSE:FERG) stock fell Tuesday after the company reported fiscal results for the quarter ended October 31, 2025. Sales rose 5.1% year over year to $8.169 billion, beating the $8.031 billion estimate.

The company stated that the increase reflected 4.2% organic growth and 1.0% acquisition growth, partially offset by 0.1% due to foreign exchange and a divestment in Canada, with price inflation of approximately 3%.

Gross margin rose 60 basis points to 30.7%. Operating margin improved 80 basis points to 9.4%, or 9.9% on an adjusted basis. GAAP diluted EPS increased 23.9% to $2.90, and adjusted EPS rose 15.9% to $2.84, topping the $2.57 estimate.

Also Read: A Preview Of Ferguson’s Earnings

Reported operating profit was $771 million and adjusted operating profit was $808 million, with adjusted EBITDA of $867 million.

Ferguson said margin improvement was driven by “our associates’ disciplined ...