Multi-industry consumer and professional products manufacturer Griffon Corporation (NYSE:GFF) beat Wall Street’s revenue expectations in Q2 CY2026, but sales fell by 21.6% year on year to $481.4 million. On the other hand, the company’s full-year revenue guidance of $1.8 billion at the midpoint came in 0.7% below analysts’ estimates. Its non-GAAP profit of $1.51 per share was 12.6% above analysts’ consensus estimates.
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Griffon (GFF) Q2 CY2026 Highlights:
- Revenue: $481.4 million vs analyst estimates of $457.8 million (21.6% year-on-year decline, 5.2% beat)
- Adjusted EPS: $1.51 vs analyst estimates of $1.34 (12.6% beat)
- Adjusted EBITDA: $124.8 million vs analyst estimates of $119.6 million (25.9% margin, 4.3% beat)
- The company reconfirmed its revenue guidance for the full year of $1.8 billion at the midpoint
- EBITDA guidance for the full year is $458 million at the midpoint, in line with analyst expectations
- Operating Margin: 24%, up from 19.2% in the same quarter last year
- Free Cash Flow Margin: 19.4%, similar to the same quarter last year
- Market Capitalization: $4.29 billion
Company Overview
Initially in the defense industry, Griffon (NYSE:GFF) is a now diversified company specializing in home improvement, professional equipment, and building products.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Griffon’s demand was weak over the last five years as its sales fell at a 4.4% annual rate. This was below our standards and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Griffon’s recent performance shows its demand remained suppressed as its revenue has declined by 12% annually over the last two years. 
This quarter, Griffon’s revenue fell by 21.6% year on year to $481.4 million but beat Wall Street’s estimates by 5.2%.
Looking ahead, sell-side analysts expect revenue to decline by 7.9% over the next 12 months. While this projection is better than its two-year trend, it’s hard to get excited about a company that is struggling with demand.
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Operating Margin
Griffon has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 16.4%. This result isn’t surprising as its high gross margin gives it a favorable starting point.
Looking at the trend in its profitability, Griffon’s operating margin rose by 9.6 percentage points over the last five years, showing its efficiency has meaningfully improved.
In Q2, Griffon generated an operating margin profit margin of 24%, up 4.8 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Griffon’s EPS grew at 23.8% compounded annual growth rate over the last five years, higher than its 4.4% annualized revenue declines. This tells us management adapted its cost structure in response to a challenging demand environment.
Diving into Griffon’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Griffon’s operating margin expanded by 9.6 percentage points over the last five years. On top of that, its share count shrank by 15.6%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Griffon, its two-year annual EPS growth of 7% was lower than its five-year trend. We hope its growth can accelerate in the future.
In Q2, Griffon reported adjusted EPS of $1.51, up from $1.50 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Griffon’s full-year EPS to grow 1.1% from $5.55 to $5.61.
Key Takeaways from Griffon’s Q2 Results
We were impressed by how significantly Griffon blew past analysts’ revenue expectations this quarter. We were also glad its EBITDA outperformed Wall Street’s estimates. On the other hand, its full-year revenue guidance slightly missed. Overall, we think this was still a solid quarter with some key areas of upside. The stock remained flat at $93.59 immediately following the results.
Griffon may have had a good quarter, but does that mean you should invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).