Watts Water Technologies reported second quarter net sales of $763 million, up 19% on a reported basis and 12% organically year-over-year. Diluted earnings per share climbed to $3.53, up 17%, while adjusted diluted EPS reached $3.66, up 18%. Data center demand drove growth across all regions, particularly in APMEA, where sales jumped 57% reported and 31% organically. The company raised its full-year sales growth outlook to 14%-17% reported, or 8%-11% organically. However, operating margin fell 80 basis points to 20.2%, pressured by acquisition dilution, inflation, and tariffs. The Americas segment saw margins drop 150 basis points. Free cash flow for the first half declined to $98 million from $105 million a year earlier.

Watts Water Technologies reported second-quarter 2026 results with sales rising to $763.2 million and net income reaching $118.3 million. The company raised its full-year 2026 guidance, now expecting reported sales growth of 14% to 17% and operating margin between 19.4% and 20%. Management attributed the improved outlook to surging data centre demand and favourable pricing. The company maintained its $0.63 quarterly dividend and completed a modest share repurchase. The raised guidance projects $3.0 billion revenue and $493.7 million earnings by 2029, requiring 6.0% yearly revenue growth. However, some analysts remain cautious about long-term pressure from mature markets and new technologies. The stock rose 13.4% following the announcement.

Watts Water Technologies shares have risen 25.1% over three months, driven by strong second-quarter results and surging data centre demand. The company posted record Q2 sales of $763.2 million, up 18.6% year-over-year, with organic sales growing 12.2%. Adjusted earnings increased 18.4% to $3.66 per share, beating consensus estimates by 9.6%. Data centre sales more than tripled year-over-year and now represent 8% of first-half sales, up from 3% in 2025. Management raised its 2026 reported sales growth outlook to 14%–17% from 8%–12%. Organic growth guidance increased to 8%–11% from 2%–6%. Third-quarter organic growth is forecast to moderate to 5%–8%, suggesting the second quarter's pace may not repeat.