Ferguson Enterprises Inc. (NYSE:FERG) shares fell more than 5% intra-day on Tuesday after the company reported first-quarter earnings below expectations and provided updated full-year guidance.

EPS came in at $2.84 for the quarter, short of the $2.97 consensus. Revenue increased 5.1% year-over-year to $8.2 billion, slightly exceeding the $8.09 billion estimate.

Ferguson reported an operating margin of 9.9%, representing an 80-basis-point adjusted improvement. Gross margin rose to 30.7%, up 60 basis points from the prior year.

For calendar year 2025, the company said it now expected net sales to grow around 5%, compared with earlier guidance for mid-single-digit expansion. It projected an adjusted operating margin between 9.4% and 9.6%, versus the prior range of 9.2% to 9.6%. Capital spending was estimated at roughly $350 million, narrowing the earlier $300 million to $350 million outlook.