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Ingersoll Rand
(NYSE:IR)
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Rating:76Outperform
Price Target:
$89.00
â–²(13.27% Upside)
Action:Reiterated
Date:08/04/26
IR earns a 76 primarily on solid financial performance (strong and growing free cash flow alongside multi-year revenue expansion) and constructive technical momentum (price above major moving averages with positive MACD). The latest earnings call adds support via raised revenue guidance and expectations for high-end EPS with strong cash conversion, while valuation is the main constraint due to a high P/E despite a supportive dividend yield.
Positive Factors
Recurring Aftermarket Revenue
A 36% aftermarket mix gives Ingersoll Rand recurring demand beyond initial equipment sales, supported by its installed base. Parts, consumables, repairs and services can improve revenue visibility and portfolio resilience across industrial investment cycles.
Negative Factors
Margin Compression
The decline in EBITDA margin shows that growth is currently accompanied by cost pressure, investments and higher corporate expenses. If these pressures persist, lower operating profitability could constrain earnings growth and reduce the benefit of rising revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Aftermarket Revenue
A 36% aftermarket mix gives Ingersoll Rand recurring demand beyond initial equipment sales, supported by its installed base. Parts, consumables, repairs and services can improve revenue visibility and portfolio resilience across industrial investment cycles.
Read all positive factors
Ingersoll Rand Key Performance Indicators (KPIs)
Any
Orders by Segment
Tracks incoming orders for each business unit, providing insight into demand trends and future revenue potential across different areas of the company.
Tracks incoming orders for each business unit, providing insight into demand trends and future revenue potential across different areas of the company.
Data provided by:
The Fly
The FlyIngersoll Rand (IR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.55B
Dividend Yield0.1%
Average Volume (3M)4.49M
Price to Earnings (P/E)32.2
Beta (1Y)1.10
Revenue Growth7.85%
EPS Growth88.74%
CountryUS
Employees21,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.45
Shares Outstanding387,999,420
10 Day Avg. Volume4,847,145
30 Day Avg. Volume4,489,349
Financial Highlights & Ratios
PEG Ratio-1.82
Price to Book (P/B)3.13
Price to Sales (P/S)4.12
P/FCF Ratio25.85
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue4.51
Enterprise Value/Gross Profit11.90
Enterprise Value/Ebitda17.92
Forecast
1Y Price Target
$103.00Price Target Upside31.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)3.54
Revenue Forecast (FY)$8.12B
Ingersoll Rand Business Overview & Revenue Model
Company Description
Ingersoll Rand Inc., established in 1859 and headquartered in Davidson, North Carolina, delivers essential air, fluid, energy, medical, and specialized vehicle technologies to customers across the United States, Europe, the Middle East, Africa, an...
How the Company Makes Money
Ingersoll Rand makes money primarily by selling industrial equipment and then generating recurring revenue from aftermarket support for the installed base. (1) Original equipment sales: A significant portion of revenue comes from the sale of produ...
Ingersoll Rand Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong execution and balanced momentum: revenue, orders, adjusted EPS, free cash flow, and a robust M&A pipeline are notable positives. There are clear near-term margin headwinds—largely concentrated in China, tied to inflation and pricing—and a corporate incentive true-up that pressured Q2 profitability. Management expects sequential margin recovery in H2, raised revenue guidance, and reiterated disciplined capital allocation. On balance, the positives (growth, cash generation, upgraded guidance, acquisitions, and balance sheet strength) materially outweigh the transitory challenges.Positive Updates
Revenue and Organic Growth
Total revenue grew 9% year-over-year to ~ $2.0B in Q2 with organic revenue growth of 4% and strengthened full-year revenue guidance raised to 4.5%–6.5% (up 200 bps at the midpoint).
Negative Updates
Margin Pressure and EBITDA Margin Decline
Adjusted EBITDA margin declined 160 basis points YoY to 25.4% in Q2, driven primarily by inflationary pressures (notably in China), investments for growth/technology and higher corporate costs (incentive true-up).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Organic Growth
Total revenue grew 9% year-over-year to ~ $2.0B in Q2 with organic revenue growth of 4% and strengthened full-year revenue guidance raised to 4.5%–6.5% (up 200 bps at the midpoint).
Read all positive updates
Company Guidance
Management updated full-year 2026 guidance to revenue growth of 4.5%–6.5% (midpoint +200 bps), assuming ~1%–3% organic growth, ~2.5% from M&A and ~1% from FX, while maintaining adjusted EBITDA of $2.13–$2.19 billion and adjusted EPS of $3.45–$3.57 (expected near the high end); they also forecast roughly 95% free cash flow conversion and about $170 million of corporate costs for the year, and noted that the EBITDA/EPS guidance excludes any IEEPA tariff refund upside and excludes RWI recoveries (initial $187.5M recovery disclosed, $25M collected in Q2, $162.5M expected in 2026) which management views as incremental upside.Ingersoll Rand Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.94B | 7.65B | 7.24B | 6.88B | 5.92B | 5.15B |
| Gross Profit | 3.01B | 2.95B | 3.17B | 2.88B | 2.33B | 1.99B |
| EBITDA | 2.00B | 1.57B | 1.83B | 1.65B | 1.28B | 1.02B |
| Net Income | 959.10M | 581.40M | 838.60M | 778.70M | 604.70M | 562.50M |
Balance Sheet | ||||||
| Total Assets | 18.19B | 18.30B | 18.01B | 15.56B | 14.77B | 15.15B |
| Cash, Cash Equivalents and Short-Term Investments | 1.17B | 1.25B | 1.54B | 1.60B | 1.61B | 2.11B |
| Total Debt | 4.83B | 4.85B | 4.98B | 2.77B | 2.79B | 3.48B |
| Total Liabilities | 7.95B | 8.14B | 7.76B | 5.72B | 5.51B | 6.08B |
| Stockholders Equity | 10.18B | 10.09B | 10.18B | 9.78B | 9.20B | 9.00B |
Cash Flow | ||||||
| Free Cash Flow | 1.22B | 1.22B | 1.25B | 1.27B | 765.70M | 551.40M |
| Operating Cash Flow | 1.35B | 1.36B | 1.40B | 1.38B | 860.30M | 615.50M |
| Investing Cash Flow | -601.50M | -660.60M | -3.11B | -1.06B | -332.90M | 914.30M |
| Financing Cash Flow | -874.80M | -1.05B | 1.71B | -337.50M | -954.00M | -1.16B |
Ingersoll Rand Technical Analysis
Positive
78.57
Price Trends
78.54
Positive
77.93
Positive
81.50
Negative
Market Momentum
0.37
Negative
57.91
Neutral
61.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IR, the sentiment is Positive. The current price of 78.57 is above the 20-day moving average (MA) of 75.21, above the 50-day MA of 78.54, and below the 200-day MA of 81.50, indicating a neutral trend. The MACD of 0.37 indicates Negative momentum. The RSI at 57.91 is Neutral, neither overbought nor oversold. The STOCH value of 61.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IR.
Ingersoll Rand Risk Analysis
Ingersoll Rand disclosed 31 risk factors in its most recent earnings report. Ingersoll Rand reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ingersoll Rand Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $30.55B | 32.21 | 9.46% | 0.10% | 7.85% | 88.74% | |
76 Outperform | $90.27B | 35.31 | 12.69% | 1.37% | 4.82% | -1.66% | |
73 Outperform | $104.95B | 36.12 | 34.49% | 0.86% | 7.04% | 4.58% | |
72 Outperform | $121.39B | 33.29 | 25.11% | 0.79% | 8.31% | 4.96% | |
66 Neutral | $45.80B | 38.23 | 8.89% | 1.70% | -1.58% | -43.59% | |
65 Neutral | $12.32B | 16.17 | 65.30% | 1.49% | -2.11% | -5.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
IR
Ingersoll Rand
78.75
2.73
3.59%
EMR
Emerson Electric Company
161.83
35.63
28.24%
TT
Trane Technologies
476.98
62.12
14.97%
LII
Lennox International
356.44
-161.69
-31.21%
PH
Parker Hannifin
962.56
239.92
33.20%
CARR
Carrier Global
55.56
-0.45
-0.80%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.