Strong Financial Performance: Ferguson reported Q3 sales of $7.6 billion, a 4.3% increase YOY, with organic growth of 5% and an additional 1% from acquisitions. Diluted earnings per share rose 7.8% to $2.50, reflecting robust operational execution amidst a dynamic market.

Positive Gross Margin Trends: Gross margin improved to 31%, a 50 basis point increase YOY. This was driven by successful actions to capture value and moderate deflation. The company anticipates maintaining gross margins above 30% into Q4, despite uncertain external factors.

Updated Full-Year Guidance: Ferguson raised its fiscal 2025 revenue growth forecast to low to mid-single-digit growth from prior low single-digit expectations, with operating margin expectations also adjusted upwards to 8.5%-9.0%. This reflects confidence bolstered by Q3 performance and strong market dynamics.