What Happened?
Shares of household products company WD-40 (NASDAQ: WDFC) fell 2.8% in the afternoon session after concerns about rising input costs and margin pressure, highlighted in its recent earnings report, continued to weigh on investor sentiment.
The company disclosed that input costs for specialty chemicals rose by as much as 100% in the previous quarter, largely due to higher oil prices linked to the Iran war. This conflict also disrupted raw material sourcing for some third-party manufacturers in Europe, India, the Middle East, and Africa.
After the initial drop, the shares shed some of the losses and rose to $240.79, down 2.4% from the previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy WD-40? Access our full analysis report here, it’s free.
What Is The Market Telling Us
WD-40’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 10 days ago when the stock gained 9% on the news that it reported second-quarter 2026 results that significantly beat Wall Street's expectations. The company posted GAAP earnings of $2.24 per share on revenue of $195.1 million, easily surpassing analysts' forecasts of $1.57 per share and $173 million in revenue.
Net sales for the quarter increased an impressive 24.3% year-on-year, driven by strong demand. The company's operating margin also expanded from 17.4% to 20.7% compared to the same quarter last year, indicating improved efficiency. Following the strong performance, WD-40's management raised its full-year revenue guidance to a midpoint of $682.5 million, a 6.2% increase from its previous forecast.
WD-40 is up 22.4% since the beginning of the year, but at $240.79 per share, it is still trading 9.1% below its 52-week high of $264.91 from July 2026. Despite the year-to-date gain, investors who bought $1,000 worth of WD-40’s shares 5 years ago would now be looking at only $960.22.
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