Watts Water Technologies (WTS)

NYSEIndustrialsIndustrial - MachinerySnapshot 2026-10-23

$358.73+0.50%

Close 2026-10-23 · 1-day change

Investment OutlookAs of Oct 24, 2026

What could strengthen or challenge Watts Water Technologies’s outlook?

The long-term thesis, the evidence coming in, and the environment around it. Thesis dated Jul 8, 2026.

Higher potential upsideImproving expectations

Next-FY EPS estimate change · 30 days

-0.1%

+10% or more+5%0%−5%−10% or less

14.04 → 14.03 EPS · FY ending Dec 31, 2027 · 5 analysts

Higher risk of downsideWeakening expectations

One observable signal. This measures changing earnings expectations, not the probability of a gain or loss.

How this is measured

Change in the same fiscal period’s mean EPS estimate from Sep 24, 2026 to Oct 24, 2026: (new ÷ prior − 1). Contributor count changed from 5 to 5; this is not the number of analysts revising. Source: FMP consensus snapshots. The ±10% axis is a display range.

Measure / period	Management expectations	Analyst expectations
FY 2026 · Q4
Revenue	—	695.13M
EPS	—	3.008
FY 2026 · Annual
Revenue	—	2.83B
EPS	—	12.855
Operating margin	19.4%–20% 19.8%–20.4%non-GAAP	—
Organic revenue growth	8%–11%	—
Revenue growth	14%–17%	—
FY 2027 · Annual
Revenue	—	2.99B
EPS	—	14.026

What the Thesis Depends On

Three published thesis conditions, with dated milestones shown separately.

Key Factor	Why It Matters	Current Status	Break Condition	Latest Evidence
Gross margin near 18% in 2025	A supporting condition in Watts Water Technologies's published investment case. The stated target is >=18.1% gross margin.	Intact	Gross margin falls below 18.1% in FY25	Gross margin: 49.02% FY2026-Q2; GAAP. Published target: >=18.1% gross margin. Target period is not explicitly aligned with this observation. Source published Aug 6, 202649.017296 percent · calculatedSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2026-Q2 · Period ending Jun 28, 2026 Source: company_financial_results. Reference: 4651ecae-7f94-49b8-a2b8-6701c7e822c6. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement.
Operating margin near 19% in 2026	A primary condition in Watts Water Technologies's published investment case. The stated target is >=18.8% operating margin.	Intact	Operating margin falls below 18.8% in FY26	Operating margin: 20.18% FY2026-Q2; GAAP. Published target: >=18.8% operating margin. Target period is not explicitly aligned with this observation. Source published Aug 6, 202620.178197 percent · calculatedSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2026-Q2 · Period ending Jun 28, 2026 Source: company_financial_results. Reference: 4651ecae-7f94-49b8-a2b8-6701c7e822c6. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement.
Revenue growth between 8% and 12% in 2026	A primary condition in Watts Water Technologies's published investment case. The stated target is 8% to 12% growth in 2026.	Intact	YoY revenue growth falls below 8% in FY26	Revenue growth: 18.56% FY2026-Q2; GAAP. Published target: 8% to 12% growth in 2026. Target period is not explicitly aligned with this observation. Source published Aug 6, 202618.564549 percent · calculatedSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2026-Q2 · Period ending Jun 28, 2026 Source: company_financial_results. Reference: 4651ecae-7f94-49b8-a2b8-6701c7e822c6. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 4 of last 4 quarters. Revenue grew from $558M in 2025-Q1 to $763M in 2026-Q2, with organic sales growth consistently at 12% in 2026-Q1 and Q2. Management has consistently emphasized strong sales growth driven by organic expansion, acquisitions, and price realization, and the financials show delivering growth on this priority. Delivery assessment Oct 24, 2026

Stored thesis · Jul 8, 2026. Latest Evidence uses source-matched measurements where available, alongside the last thesis-monitor assessment. Source periods and assessment dates are shown separately. A new measurement does not automatically change the published status or verify an older target.

Incoming Evidence

Compare these dated observations with the operating requirements above

Expectations trend

Same fiscal period

FY2027 · fiscal year ending 2027-12-31 · fmp

FY2027 EPS$14.03

$13.19 → $14.03 · observed estimates

FY2027 revenue$2.99B

$2.89B → $2.99B · observed estimates

Exact estimates & source dates

One fiscal period and provider throughout. At least five contributors are required for each plotted metric; missing coverage stays a gap. Axes show the observed range. Counts measure coverage, not revisions.

FY2027 estimate observations · fmp
Snapshot	EPS	Revenue	EPS / revenue analysts
2026-07-24	$13.19	$2,891,434,100	6 / 7
2026-07-25	$13.19	$2,891,395,410	10 / 10
2026-07-26	$13.19	$2,891,434,100	6 / 7
2026-07-27	$13.19	$2,891,395,410	10 / 10
2026-07-28	$13.19	$2,891,395,410	10 / 10
2026-07-29	$13.19	$2,891,434,100	6 / 7
2026-07-30	$13.19	$2,891,434,100	6 / 7
2026-07-31	$13.19	$2,891,395,410	10 / 10
2026-08-01	$13.19	$2,891,434,100	6 / 7
2026-08-02	$13.19	$2,891,395,410	10 / 10
2026-08-03	$13.19	$2,891,434,100	6 / 7
2026-08-04	$13.19	$2,891,395,410	10 / 10
2026-08-05	$13.19	$2,891,434,100	6 / 7
2026-08-06	$13.19	$2,891,434,100	6 / 7
2026-08-08	$13.26	$2,899,380,316	6 / 7
2026-08-09	$13.90	$2,978,934,610	10 / 10
2026-08-10	$13.90	$2,978,934,610	10 / 10
2026-08-12	$13.26	$2,899,380,316	6 / 7
2026-08-13	$13.26	$2,899,380,316	6 / 7
2026-08-14	$13.26	$2,899,380,316	6 / 7
2026-08-15	$13.26	$2,899,380,316	6 / 7
2026-08-16	$13.26	$2,899,380,316	6 / 7
2026-08-17	$13.26	$2,899,380,316	6 / 7
2026-08-18	$13.26	$2,899,380,316	6 / 7
2026-08-19	$13.26	$2,899,380,316	6 / 7
2026-08-20	$14.09	$3,003,693,600	7 / 7
2026-08-21	$14.09	$3,003,693,600	7 / 7
2026-08-22	$14.09	$3,003,693,600	7 / 7
2026-08-23	$14.09	$3,003,693,600	6 / 7
2026-08-24	$14.03	$2,996,881,778	6 / 7
2026-08-25	$14.03	$2,996,881,778	6 / 7
2026-08-26	$14.03	$2,996,881,778	6 / 6
2026-08-27	$14.03	$2,996,881,778	6 / 6
2026-08-28	$14.03	$2,996,881,778	6 / 6
2026-08-29	$14.03	$2,996,881,778	6 / 6
2026-08-30	$14.03	$2,996,881,778	6 / 6
2026-08-31	$14.03	$2,996,881,778	6 / 6
2026-09-01	$14.03	$2,996,881,778	6 / 6
2026-09-02	$14.03	$2,996,881,778	6 / 6
2026-09-03	$14.03	$2,996,881,778	6 / 6
2026-09-04	$14.03	$2,996,881,778	6 / 6
2026-09-05	$14.04	$2,993,304,500	6 / 6
2026-09-06	$14.04	$2,993,304,500	5 / 6
2026-09-07	$14.04	$2,993,304,500	5 / 6
2026-09-08	$14.04	$2,993,304,500	5 / 6
2026-09-09	$14.04	$2,993,304,500	5 / 6
2026-09-10	$14.04	$2,993,304,500	5 / 6
2026-09-11	$14.04	$2,993,304,500	5 / 6
2026-09-12	$14.04	$2,993,304,500	5 / 6
2026-09-13	$14.04	$2,993,304,500	5 / 6
2026-09-14	$14.04	$2,993,304,500	5 / 6
2026-09-15	$14.04	$2,993,304,500	5 / 6
2026-09-16	$14.04	$2,993,304,500	5 / 6
2026-09-17	$14.04	$2,993,304,500	5 / 6
2026-09-18	$14.04	$2,993,304,500	5 / 6
2026-09-19	$14.04	$2,993,304,500	5 / 6
2026-09-20	$14.04	$2,993,254,500	5 / 6
2026-09-21	$14.04	$2,993,254,500	5 / 6
2026-09-22	$14.04	$2,993,254,500	5 / 6
2026-09-23	$14.04	$2,993,254,500	5 / 6
2026-09-24	$14.04	$2,993,254,500	5 / 6
2026-09-25	$14.04	$2,993,254,500	5 / 6
2026-09-26	$14.04	$2,993,254,500	5 / 6
2026-09-27	$14.04	$2,993,254,500	5 / 6
2026-09-28	$14.04	$2,993,254,500	5 / 6
2026-09-29	$14.04	$2,993,254,500	5 / 6
2026-09-30	$14.04	$2,993,254,500	5 / 6
2026-10-01	$14.04	$2,993,254,500	5 / 6
2026-10-02	$14.04	$2,993,254,500	5 / 6
2026-10-03	$14.04	$2,993,254,500	5 / 6
2026-10-04	$14.04	$2,993,254,500	5 / 6
2026-10-05	$14.04	$2,993,254,500	5 / 6
2026-10-06	$14.04	$2,993,254,500	5 / 6
2026-10-07	$14.04	$2,993,254,500	5 / 6
2026-10-08	$14.04	$2,993,254,500	5 / 6
2026-10-09	$14.04	$2,993,254,500	5 / 6
2026-10-10	$14.04	$2,993,254,500	5 / 6
2026-10-11	$14.04	$2,993,254,500	5 / 6
2026-10-12	$14.04	$2,993,254,500	5 / 6
2026-10-13	$14.04	$2,993,254,500	5 / 6
2026-10-14	$14.04	$2,993,254,500	5 / 6
2026-10-15	$14.04	$2,993,254,500	5 / 6
2026-10-16	$14.04	$2,993,254,500	5 / 6
2026-10-17	$14.04	$2,993,254,500	5 / 6
2026-10-18	$14.04	$2,993,254,500	5 / 6
2026-10-19	$14.04	$2,993,254,500	5 / 6
2026-10-20	$14.03	$2,990,217,000	5 / 6
2026-10-21	$14.03	$2,990,217,000	5 / 6
2026-10-22	$14.03	$2,990,267,000	5 / 6
2026-10-23	$14.03	$2,990,267,000	5 / 6
2026-10-24	$14.03	$2,990,267,000	5 / 6

Revenue and EPS estimates track expectations. They are not delivered results or like-for-like proof of a required annual path.

Compare required revenue and earnings

Analyst view

Monthly observations

Buy / Strong BuyHoldSell / Strong Sell

Exact monthly counts

Monthly rating snapshots · fmp. Missing snapshots are not zero.
Date	Buy*	Hold
2026-05-01	2	10
2026-06-01	3	10
2026-07-01	3	9
2026-08-01	3	9
2026-09-01	3	8
2026-10-01	3	7

*Buy includes Strong Buy; Sell includes Strong Sell. Monthly counts describe the analyst mix, not the firms behind each recent action.

Latest: 3 Buy / Strong Buy · 7 Hold · 0 Sell / Strong Sell

0 upgrades0 downgrades1 maintains

Recent actions · Sep 25–Oct 24 · 1 recorded

Price-target changes

30 days

○ Previous · ● Latest · common dollar scale

Stifel NicolausOct 19 · prior Jul 20

$403.00 → $445.00+10.4%

$0$244.75$489.50

1 raises · 0 cuts · 0 unchanged · 0 without a comparable prior

How this is measured

Sep 25, 2026–Oct 24, 2026. Each firm's latest positive target is paired only with its immediately prior positive target from the same provider, at most 180 days earlier. Unmatched observations have one dot; conflicting observations are not compared.

Outlook in Brief

The evidence, the remaining questions, and what comes next

What's improving

No recovery evidence is reported in the available driver assessments.

Still unresolved / key risks

Gross margin near 18% in 2025Gross margin: 49.02%
Operating margin near 19% in 2026Operating margin: 20.18%
Revenue growth between 8% and 12% in 2026Revenue growth: 18.56%

Next proof point

Nov 4, 2026

Look for updated results and guidance against the published targets, plus direct evidence for unresolved drivers.

Review earnings

Bottom line

3 of 3 published conditions remain under pressure or need verification. The next results need to address those conditions.

The dated weekly assessment and its assumptions are available in Read detailed Outlook.

Historical risk context

Observed price history; separate from operating scenarios

Price sensitivity

1.0%Typical daily move · historical

Downside history

-15.4%Maximum drawdown · trailing year

Read detailed Outlook Company context, assumptions & risks

Watts Water Technologies outlook in detail

The weekly editorial context below is a separate assessment from the dated monitor evidence above. Recovery observations do not automatically change the published thesis. Unverified outside influences are hypotheses, not measured driver evidence.

Updated Oct 24, 2026

What kind of bet this is

This investment represents a stable growth opportunity. WTS has demonstrated strong financial performance recently, but it operates in a sector facing potential challenges, making the current thesis state cautious yet intact.

What's priced into Watts Water Technologies

The market appears to be pricing in a stretched valuation, reflecting a durable premium compared to peers. There is a slight expectations gap, suggesting that investors are anticipating continued strong performance but with some fragility due to execution quality.

What the fundamentals likely do

Management has prioritized revenue growth, margin enhancement, and disciplined capital allocation, showing strong execution on these fronts. Recent financial results indicate solid organic sales growth and improved operating margins, although the risk of missing future guidance remains moderate.

What Watts Water Technologies hinges on

The long-term thesis hinges on the performance of sector bellwethers like GEV, PH, and TT. If these companies continue to perform well, it could provide a favorable environment for WTS. Conversely, any negative shifts in guidance from these peers could impact WTS's momentum.