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WTS · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Watts Water Technologies, Inc. Class A (WTS) stock moving?
Watts reported a strong Q3 2026 on Nov 4: sales of $728M beat the $692.5M estimate, adjusted EPS of $3.40 beat $3.14, and full-year 2026 sales guidance was raised to $2.854B-$2.878B. Management cited double-digit organic growth, 240 bps of adjusted margin expansion, and continued strength in data center demand, while noting that higher rates weigh on new construction. The share price did not follow the beat. It closed at $353.30 on Nov 4, down from $360.33 the day before, and fell to $346.14 by Nov 6 after heavy volume of 641K shares on Nov 5, the highest in the 30-day window. RBC kept its Sector Perform rating but cut its target to $397 from $417, and Barclays kept its Overweight rating with a target of $424, down $1. The stock has since recovered to $359.31 on Nov 10, with a 3.9% gain on Nov 9 on roughly average volume. The price remains in the $340-$373 range seen over the past month. The fundamental news is clearly positive, while the analyst target cuts and muted reaction temper near-term enthusiasm.
News behind the analysis
- Watts Water Technologies Q3 Adj. EPS $3.40 Beats $3.14 Estimate, Sales $728.000M Beat $692.533M EstimateQ3 2026 adjusted EPS of $3.40 and net sales of $728.0M both beat consensus. Net sales rose 19% on a reported basis and 12% organically.
- Watts Water Technologies Raises FY2026 Sales Guidance from $2.780B-$2.854B to $2.854B-$2.878B vs $2.826B EstThe company raised its full-year 2026 sales outlook to $2.854B-$2.878B, above the $2.826B estimate. Management also raised its margin outlook and cited data center demand.
- Watts Water Technologies, Inc. Reports Q3 2026 Financial ResultsRevenue of $728.0M and adjusted EPS of $3.40 both exceeded analyst expectations. Adjusted operating margin reached 20.9%, up 240 bps, and diluted EPS rose 77%.
- Watts Water Technologies Q3 2026 Earnings Call TranscriptThe company published the transcript of its Q3 2026 earnings call, held the day after results. It covers the quarter's results and the outlook.
- RBC Capital Maintains Sector Perform on Watts Water Technologies, Lowers Price Target to $397RBC kept its Sector Perform rating but cut its price target from $417 to $397. The move came after the strong quarter.
- Barclays Maintains Overweight Rating on Watts Water TechnologiesBarclays reaffirmed its Overweight rating and trimmed its price target slightly, from $425 to $424.
- Barclays Maintains Overweight on Watts Water Technologies, Lowers Price Target to $424Barclays kept its Overweight stance on Watts Water Technologies after the quarter and lowered its price target to $424.
- Watts Water Technologies, Inc. Declares Quarterly DividendThe board declared a quarterly dividend of $0.63 per share for both Class A and Class B common stock.
About Watts Water Technologies, Inc. Class A
Watts Water Technologies is a Massachusetts-based manufacturer of plumbing, heating and water-quality products, such as valves, backflow preventers, drains, boilers and filtration systems, used in homes, commercial buildings and institutions. It is known for safety and code-driven products and is pushing into connected "smart" water controls. Recently, data-center construction has become a notable source of demand.
How it makes money
It sells its products mostly through plumbing wholesalers, distributors and OEMs to contractors and building owners. The Americas make up the large majority of sales (roughly three-quarters or more), with smaller Europe and Asia-Pacific segments. Commercial and institutional buildings account for more of sales than residential. Trailing annual revenue is roughly $2.7–2.8 billion, and recent growth has come from price increases, higher volumes tied to data centers, and acquisitions.
What usually moves WTS
- Commercial and residential construction and repair activity
- Data-center build-outs
- Pricing power versus copper, bronze and steel costs
- Tariffs and trade policy
- Acquisitions and European heating demand