Pentair (NYSE:PNR) Announces Earnings Results, Beats Expectations By $0.11 EPS

Pentair (NYSE:PNR) announced its earnings results on Tuesday. The industrial products company reported $1.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.07 by $0.11, FiscalAI reports. The business had revenue of $976.40 million during the quarter, compared to analyst estimates of $963.71 million. Pentair had a return on equity of 20.62% and a net margin of 16.24%. Pentair’s revenue for the quarter was down 4.5% compared to the same quarter last year. During the same period last year, the company earned $1.24 EPS.

Here are the key takeaways from Pentair’s conference call:

• Third-quarter results exceeded expectations, with adjusted EPS of $1.18 versus guidance of $1.05–$1.08, supported by strong execution in Flow and Water Solutions and $153 million of free cash flow.
• The Taco acquisition closed on October 1 and is performing ahead of expectations, with projected 2027 sales above $620 million and EBITDA above $105 million; management expects it to be adjusted-EPS accretive in 2027 and plans to delever from roughly 2.5x net leverage.
• Pentair said the Pool channel inventory destocking is complete, with roughly $280 million removed across the second and third quarters. Management expects 2027 Pool sales to rise approximately 14% as shipments align with estimated $1.45 billion sell-through, even without an end-market recovery.
• Flow and Water Solutions delivered sales growth and significant margin expansion, although Flow was constrained by delayed food-and-beverage spending and Water Solutions continues to face residential housing headwinds.
• The company expects approximately $43 million of 2026 tariff recoveries to be nonrecurring, creating a year-over-year earnings headwind in 2027; Pool also remains in a recovery phase, with 2026 sales expected to decline 18%–19% and ongoing investments pressuring margins.

Pentair Stock Up 12.1%

Shares of NYSE PNR traded up $6.66 during midday trading on Tuesday, hitting $61.88. 879,405 shares of the stock traded hands, compared to its average volume of 2,452,523. The company has a market cap of $9.88 billion, a PE ratio of 15.50, a P/E/G ratio of 1.41 and a beta of 1.04. Pentair has a one year low of $51.13 and a one year high of $110.12. The business has a 50 day moving average price of $56.72 and a two-hundred day moving average price of $77.20. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.76 and a current ratio of 1.45.

Pentair Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 6th. Stockholders of record on Friday, October 23rd will be issued a dividend of $0.27 per share. The ex-dividend date is Friday, October 23rd. This represents a $1.08 annualized dividend and a dividend yield of 1.7%. Pentair’s payout ratio is currently 27.14%.

Key Pentair News

Here are the key news stories impacting Pentair this week:

• Positive Sentiment: Adjusted earnings and revenue beat expectations: Pentair reported third-quarter adjusted EPS of $1.18, exceeding the $1.07 analyst consensus by $0.11. Revenue of $976.4 million also surpassed expectations of $963.7 million. Pentair Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Analysts raised 2027 earnings forecasts: Zacks Research increased its estimates for first-quarter, second-quarter and fourth-quarter 2027 EPS, while lifting its full-year 2027 forecast to $5.12 from $5.05. The revisions suggest somewhat better anticipated earnings momentum, although the firm maintained a “Hold” rating.
• Positive Sentiment: Profitability remained solid: Pentair posted a 16.24% net margin and a 20.62% return on equity, supporting the investment case despite softer sales.
• Neutral Sentiment: Fourth-quarter outlook provides a near-term benchmark: The company expects fourth-quarter adjusted EPS of approximately $1.15, giving investors a framework for evaluating whether earnings can remain resilient. Pentair Fourth-Quarter Adjusted EPS Outlook
• Negative Sentiment: Sales and earnings remain below last year: Third-quarter sales declined roughly 4% to 5% year over year, while adjusted EPS fell from $1.24 in the prior-year quarter. The results indicate that the earnings beat was driven more by execution and cost control than by underlying growth. Pentair Reports Third Quarter 2026 Results

Wall Street Analyst Weigh In

A number of research firms have weighed in on PNR. BNP Paribas Exane reissued an “underperform” rating and set a $64.00 target price (down from $75.00) on shares of Pentair in a research report on Thursday, July 16th. Jefferies Financial Group upgraded shares of Pentair to a “strong-buy” rating in a research report on Wednesday, October 7th. Citigroup reduced their price objective on shares of Pentair from $85.00 to $69.00 and set a “buy” rating on the stock in a research note on Monday, October 12th. Mizuho reduced their price objective on shares of Pentair from $85.00 to $65.00 and set an “outperform” rating on the stock in a research note on Thursday, October 15th. Finally, Zacks Research upgraded shares of Pentair from a “strong sell” rating to a “hold” rating in a research report on Wednesday, October 7th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Pentair has an average rating of “Hold” and an average price target of $76.19.

Pentair Company Profile

Pentair plc (NYSE: PNR) is a water treatment and management company that designs and manufactures products and systems for residential, commercial, industrial, and recreational applications. Its offerings include water filtration, softening, and purification systems; pumps, valves, controls, and related equipment; and solutions that help customers manage water quality, flow, and conservation.

The company also serves the swimming pool and spa market through equipment such as pumps, filters, heaters, lighting, automation systems, and water-treatment products.