Watsco Inc. pointed to improving market stability and continued digital sales growth in results for its fiscal Q1 ended March 31.
Online sales grew 16% year over year, Watsco reported. That growth proved to be stronger than improvements in other areas of its business.
“We saw ecommerce sales bloom this quarter,” Watsco executive vice president Barry Logan told investors. They made up 36% of total revenue, amounting to $2.6 billion for the 12 months ending March 31. In certain regions, online sales were over 60% of total sales.
The HVAC distributor expects ecommerce growth to continue through the rest of the fiscal year. Watsco noted that ecommerce has better margins than other sales for the distributor.
Watsco revenue in Q1 2026
Aside from the digital business that makes up about one-third of revenue, the remainder of Watsco’s results were stagnant in Q1.
Watsco revenue remained flat year over year at $1.53 billion in Q1, as was gross profit of $428 million. U.S. market revenue increased 2%, while international revenue decreased 11% in the same period.
The distributor shared an optimistic outlook going forward.
“Our markets are experiencing improved stability as we approach the summer selling season for our products,” said Albert Nahmad, chairman and CEO at Watsco, in a written statement. “Our teams are collaborating well with our contractor customers, who also have a more simplified, focused business environment in which to offer and sell their products and services.”
Watsco’s digital platform
After investing approximately $250 million into technology over the last five years, Watsco credited its HVAC mobile app and ecommerce platform with improving customer experience and driving growth. The distributor recorded 74,000 contractors that are active users of its HVAC Pro+ Mobile Apps, up from 73,000 in Q4.
OnCallAir, Watsco’s digital tool that contractors can use to provide quotes to homeowners, reached a gross merchandise value (GMV) of $394 million. That’s an increase of 20% year over year. For the 12 months ended March 31, contractors used OnCallAir to provide quotes to 336,000 households and reached $1.9 million GMV, up 20% from the previous 12 months.
“We expect sales of OnCall Air to exceed $2 billion this year,” Nahmad assessed during Watsco’s April 28 earnings call. “We feel like this is a good start and expect more progress as adoption by contractors gain[s] momentum in years ahead.”
Watsco also continues to invest in artificial intelligence (AI), the company said. So far, it is using AI to improve efficiency and enhance customer experience, Watsco said without providing further details.
Jackson Supply Company acquisition
Along with financial results, Watsco announced its acquisition of Jackson Supply Company, an HVAC distributor serving Sunbelt states, including Louisiana, Texas, Mississippi and Oklahoma. Jackson Supply recorded $230 million in sales in 2025.
“Jackson will expand their Sunbelt presence by 25 locations and provide diversification of brands and products, given their strong presence in parts and supplies,” Nahmad said.
The deal is expected to close in Q2, and Jackson Supply will continue operating as an independent business under its current management team.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s our last update on Watsco ecommerce sales.
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