EarningsQ3 2026 Earnings Report
MX:IR Q3 2026 EPS Results
Actual EPS$20.10
Consensus EPS$16.96
Beat/MissBeat by +$3.14
One Year Ago EPS$16.16
MX:IR Q3 2026 Revenue Results
Actual Revenue$38.79B
Expected Revenue$38.55B
Beat/MissBeat by +$242.67M
YoY Revenue Growth+5.62%
Earnings Announcement Details
QuarterQ3 2026
Date10/29/2026
TimeAfter Close
Conference CallThursday, October 29, 2026
MX:IR Upcoming Earnings
Ingersoll Rand's next earnings date is estimated for February 18, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:IR Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. The company reported robust orders, organic growth, higher revenue and adjusted EPS guidance, strong PST execution, improving sequential margins, substantial liquidity, progress on ILC Dover recoveries, and a growing data center opportunity. Offsetting issues included inflation and China pricing pressure, initially lower margins on the data center ramp, slower-than-targeted 2026 M&A contribution, weak electric vehicle and renewable natural gas markets, and quote-to-order cycles that have not shortened meaningfully. Highlights significantly outweighed the lowlights.Company Guidance
Strong Third-Quarter Orders and Revenue Growth
Third-quarter orders were $2.35 billion, up 21% year-over-year, with organic orders growth of 18%. Revenue increased 6% year-over-year to $2.1 billion, including 4% organic revenue growth. Book-to-bill was 1.14x, above typical third-quarter levels.
Adjusted EPS Growth and Raised Guidance
Adjusted EPS was $1.07 for the quarter, or $1.01 excluding IEEPA tariff refunds, up 17% year-over-year. Full-year adjusted EPS guidance, excluding Q3 IEEPA tariff refunds, was raised to $3.58-$3.70, primarily due to a lower adjusted tax rate of approximately 20% and a lower share count of approximately 390.5 million.
Revenue Guidance Increased
Full-year revenue growth guidance was raised to 5.5%-7%. Organic growth expectations were increased to 2%-3.5%, while the company continues to expect approximately 2.5% growth from M&A and approximately 1% from FX.
ITS Orders and Data Center Expansion
ITS orders increased 25% year-over-year, including 22% organic growth, with a 1.17x book-to-bill. The company booked an approximately $195 million engineered-to-order solution for mission-critical data center infrastructure, covering integrated backup power and filtration systems. The order is accretive to EBITDA dollars and adjusted EPS from the start, with the majority expected to be recognized through 2027.
Growing Data Center Funnel and Technology Positioning
Ingersoll Rand stated that it had no data center presence a year ago but has since built a sizable funnel and established partnerships with several customers. The company is combining power generation, thermal management, chillers, water-cooling pumping skids, filtration, and engineered-to-order capabilities, and is expanding the approach from Asia Pacific into the U.S. and India.
Underlying ITS Order Momentum
Excluding the approximately $195 million data center award, ITS organic orders were up high single digits, while long-cycle organic orders increased over 20% in the quarter. Short-to-medium cycle orders were in the mid-single-digit range, and the company said the improvement was broad-based across industrial end markets.
Positive ITS Revenue and Regional Performance
ITS revenue increased 5% year-over-year, including 4% organic growth, with all regions contributing positive organic revenue growth for the second consecutive quarter. Americas orders were up mid-single digits, EMEIA orders were up low 20s, and Asia Pacific excluding the large data center order and China was up low single digits.
PST Growth and Margin Expansion
PST orders increased 7% year-over-year, including 4% organic growth, while revenue increased 7%, including 6% organic growth. Life Science Technologies delivered low double-digit growth in both orders and revenue. PST adjusted EBITDA excluding IEEPA tariff refunds was $145 million, with a 32.6% margin, up 180 basis points year-over-year and 110 basis points sequentially.
Sustained PST Incremental Margins
PST delivered five consecutive quarters of incremental margins above 40%. Management said the segment is operating above 32% EBITDA margins and that the mid-30s EBITDA target range is well within sight, with expectations for a similar margin range in the fourth quarter.
Sequential Margin Improvement and Fourth-Quarter Outlook
Company adjusted EBITDA excluding IEEPA tariff refunds was $552 million, with a 26.7% margin. Margins improved 130 basis points sequentially from Q2, and management expects approximately 100 basis points of additional sequential margin improvement from Q3 to Q4, supported by improving price-cost, volume, productivity, procurement, and i2V initiatives.
Strong Free Cash Flow and Balance Sheet
Third-quarter free cash flow was $623 million, including $162.5 million of ILC Dover transaction-related recoveries. Excluding those recoveries, free cash flow was approximately $461 million, up roughly 40% year-over-year. Total available liquidity was approximately $3.9 billion, including $1.3 billion of cash and $2.6 billion of available revolving credit capacity. Leverage improved to 1.6x from 1.7x in Q2 and 1.8x a year ago.
ILC Dover Recovery Progress
Total gross recoveries related to the ILC Dover transaction reached approximately $425.1 million. The company collected $25 million in Q2 and $162.5 million in Q3 and expects to collect the remainder in the fourth quarter. The recoveries are excluded from adjusted earnings.
Expanded Share Repurchase Authorization
The board authorized a $2 billion increase to the share repurchase program, in addition to $313 million remaining under the existing authorization. During the quarter, the company returned $358 million to shareholders through $350 million of share repurchases and its quarterly dividend.
M&A Activity and IVEK Acquisition
Ingersoll Rand closed the acquisition of IVEK Corporation, a provider of small-volume precision liquid metering and dispensing systems. IVEK adds approximately $40 million in annual revenue, expands precision pump capabilities, strengthens the Life Science offering, and was acquired at a low double-digit multiple. Year-to-date, the company had closed or signed eight transactions and had seven additional transactions at the LOI stage.
Robust M&A Pipeline
The M&A funnel includes more than 200 companies, with approximately 90% of deals internally sourced. Management said M&A remains the top capital deployment priority and expects approximately 200-300 basis points of annualized inorganic revenue in 2026, while maintaining its 400-500 basis point through-cycle target.
Tax Rate Benefit
The adjusted tax rate was approximately 17% in the quarter. The company said its global legal-entity simplification enabled the use of previously unavailable foreign tax credits, creating a discrete third-quarter benefit and a durable benefit to the tax rate and cash repatriation efforts going forward.
Life Science and AI-Enabled Lab Automation Opportunity
The company highlighted investments in lab automation through Scinomix and Zinsser Analytic, which provide robotic automation for drug discovery. Management said these systems support customers using AI for personalized medicine and immunotherapy applications.
New Product and Sustainability Innovations
Ingersoll Rand introduced oil-free rotary screw compressors with a new rotor design, optimized cooling jacket, and advanced sensors that transmit operating data to its service network for proactive monitoring and maintenance. The company also highlighted the Zero Emission Odorization platform, which can reduce methane emissions by up to 15 million cubic feet per year for an average-sized utility.
Improving Demand Indicators
Management reported broad-based global demand improvement, acceleration in requests for quotes and pricing, no meaningful increase in cancellations, and improving project progression toward completion. Compressor and machine utilization was described as showing continued momentum, alongside PMI-related acceleration.
MX:IR Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed