WD-40 Company (WDFC) shares surged 6.33% in after-hours trading on Wednesday following the release of its fourth-quarter earnings report, which exceeded analyst expectations and provided an optimistic outlook for the coming fiscal year.

The company reported quarterly earnings of $1.56 per share, significantly beating the analyst consensus estimate of $1.26 by 23.81%. This represents a 26.83% increase from the same period last year. WD-40's Q4 sales reached $163.5 million, up 5% year-over-year and surpassing the expected $153.91 million. The strong performance was driven by a 6% increase in maintenance product sales, particularly in the EIMEA and Asia-Pacific regions.

WD-40's gross margin improved to 54.7% in the fourth quarter, reflecting the success of the company's margin recovery plan. Net income for Q4 increased by an impressive 27% compared to the previous year, reaching $21.2 million. Looking ahead, WD-40 provided a positive outlook for fiscal year 2026, projecting earnings per share between $5.75 and $6.15. The company also announced plans to accelerate share repurchases, signaling confidence in its long-term business fundamentals. These factors combined to drive investor enthusiasm, resulting in the significant after-hours stock price increase.