ITT REPORTS THIRD QUARTER 2026 EPS OF $1.38 AND ADJUSTED EPS OF $2.26 RAISING FULL-YEAR GUIDANCE ACROSS ALL KEY METRICS
ITT INC. (ITT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 ITT REPORTS THIRD QUARTER 2026 EPS OF $1.38 AND ADJUSTED EPS OF $2.26 RAISING FULL-YEAR GUIDANC E ACROSS ALL KEY METRICS ▪ Orders increased 58%, 20% organic, driven by the SPX FLOW acquisition, and strength in aerospace and defense, flow projects and biopharma, respe
How this was made
The 30-second read
Why it matters
The raised EPS guidance suggests stronger earnings momentum, likely supporting the stock price in the near term.
Market read
First‑report earnings and guidance lift for a mid‑cap industrial player; actionable for short‑term traders.
What to watch
Higher interest expense and integration costs may erode margins despite revenue growth.
ITT REPORTS THIRD QUARTER 2026 EPS OF $1.38 AND ADJUSTED EPS OF $2.26 RAISING FULL-YEAR GUIDANCE ACROSS ALL KEY METRICS
Third-quarter revenue grew 44.2%, organic revenue growth was 7.6%, adjusted operating income increased 54.8%, adjusted EPS increased 19.6%, and the company raised full-year guidance across key metrics.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 RevenueGAAP | $1.44B | – | 44.2 % |
| Q3 2026 Organic Revenuenon-GAAP | $1.07B | – | 7.6 % |
| Q3 2026 Ordersother | $1.56B | – | 57.7 % |
| Q3 2026 Organic Ordersnon-GAAP | $1.19B | – | 20.5 % |
| Q3 2026 Cost of revenueGAAP | $890.2M | – | – |
| Q3 2026 Gross profitGAAP | $550.4M | – | – |
| Q3 2026 General and administrative expensesGAAP | $139M | – | – |
| Q3 2026 Sales and marketing expensesGAAP | $88.4M | – | – |
| Q3 2026 Research and development expensesGAAP | $35M | – | – |
| Q3 2026 Intangible amortization expensesGAAP | $61.2M | – | – |
| Q3 2026 Operating incomeGAAP | $226.8M | – | 26.1 % |
| Q3 2026 Operating marginGAAP | 15.7 % | – | (230) bps |
| Q3 2026 Adjusted operating incomenon-GAAP | $303.1M | – | 54.8 % |
| Q3 2026 Adjusted operating marginnon-GAAP | 21.0 % | – | 140 bps |
| Q3 2026 Interest expenseGAAP | $45M | – | – |
| Q3 2026 Interest incomeGAAP | −$3.3M | – | – |
| Q3 2026 Other non-operating income, netGAAP | −$1.2M | – | – |
| Q3 2026 Income before income tax expenseGAAP | $186.3M | – | – |
| Q3 2026 Income tax expenseGAAP | $61.8M | – | – |
| Q3 2026 Income from continuing operationsGAAP | $124.5M | – | – |
| Q3 2026 Net incomeGAAP | $124.5M | – | – |
| Q3 2026 Net income attributable to ITT Inc.GAAP | $123.6M | – | – |
| Q3 2026 Basic earnings per share attributable to ITT Inc.GAAP | $ 1.38 | – | – |
| Q3 2026 Diluted earnings per share attributable to ITT Inc.GAAP | $ 1.38 | – | (14.8) % |
| Q3 2026 Adjusted income from continuing operationsnon-GAAP | $203.3M | – | 36.9 % |
| Q3 2026 Adjusted diluted earnings per sharenon-GAAP | $ 2.26 | – | 19.6 % |
| Q3 2026 Net cash from operating activitiesGAAP | $312.5M | – | 79.6 % |
| Q3 2026 Free cash flownon-GAAP | $288.4M | – | 87.0 % |
| Q3 2026 Free cash flow marginnon-GAAP | 20.0 % | – | – |
| Nine Months 2026 RevenueGAAP | $4.13B | – | – |
| Nine Months 2026 Net cash from operating activitiesGAAP | $543.6M | – | – |
| Nine Months 2026 Free cash flownon-GAAP | $464.3M | – | – |
| Nine Months 2026 Free cash flow marginnon-GAAP | 11.3 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Flow TechnologiesOrganic revenue increased 6%, led by continued strength in energy and biopharma. | $764.3M | – | 99.1 % |
| Motion TechnologiesRevenue increased $8 million versus the prior year, driven by growth in Friction and strength in KONI defense. | $363.7M | – | 2.3 % |
| Connect & Control TechnologiesRevenue increased $55 million year-over-year, reflecting pricing actions, wins in defense, industrial connectors and aerospace components. | $313.9M | – | 21.1 % |
Full Year 2026 outlook
- Revenuetotal revenue growth of 41% to 43%; $ 5,585 million
- Noteorganic revenue growth of 7% to 9%
- Noteoperating margin of 13.3% to 14.1%
- Noteadjusted operating margin of 20.2% to 21.0%, an increase of 80 to 160 bps versus prior year
- NoteEPS of $4.65 to $4.73
- Noteadjusted EPS of $8.54 to $8.62, representing growth of 19% to 20% for the full year
- Notenet cash from operating activities of $ 745 million to $ 765 million
- Notefree cash flow of $600 million to $620 million
- Notefree cash flow margin of ~11%
- Noteoperating cash flow margin of 13 % to 14 %
Capital returns
- The company announced a quarterly dividend of $0.386 per share on its outstanding common stock.
- The fourth-quarter 2026 cash dividend will be payable on Thursday, December 31, 2026 to shareholders of record as of the close of business on Friday, December 4, 2026.
- Nine Months 2026 share repurchases under repurchase plan were $ 155.0 million, compared with $ 500.9 million in the prior-year period.
- Nine Months 2026 dividends paid were $ 104.1 million, compared with $ 83.5 million in the prior-year period.
What drove it
- SPX FLOW contributed 35 points of total revenue growth.
- Organic revenue increased 8%, led by strength across CCT aerospace and defense connectors and continued momentum in FT pump projects and valves.
- Adjusted operating income reflected benefits from SPX FLOW, incremental volume, pricing and productivity actions across the portfolio.
- Flow Technologies adjusted operating income increased 96.1%, reflecting SPX FLOW, higher volume and pricing actions.
- Connect & Control Technologies organic revenue growth was 18.6%, supported by pricing actions and wins in defense, industrial connectors and aerospace components.
- Orders increased 57.7%, while organic orders growth was 20.5%.
Concerns
- Operating margin decreased 230 bps to 15.7%, reflecting acquisition-related intangible amortization and costs.
- Diluted EPS decreased 14.8% to $ 1.38 due to acquisition-related costs.
- Interest expense was $ 45.0 million, compared with $ 11.7 million in the prior-year quarter.
- Flow Technologies operating margin decreased 770 bps to 13.7%, primarily due to SPX FLOW acquisition-related impacts.
- The company cites risks related to the integration of SPX FLOW and the realization of anticipated acquisition benefits and projected synergies.
What to watch
- Execution against full-year organic revenue growth guidance of 7% to 9% and total revenue growth guidance of 41% to 43%.
- Delivery of full-year operating margin of 13.3% to 14.1% and adjusted operating margin of 20.2% to 21.0%.
- SPX FLOW cost synergies, revenue synergies and high-single-digit growth cited by management.
- The effect of higher interest expense, weighted-average share count and effective tax rate associated with the acquisition.
- The trajectory of Flow Technologies adjusted operating margin, which decreased 40 bps year-over-year but improved 100 bps sequentially.
- Order momentum and backlog, which management described as healthy.
Balance sheet and cash flow
- Cash and cash equivalents were $ 558.1 million as of October 3, 2026, compared with $ 1,742.9 million as of December 31, 2025.
- Cash and Cash Equivalents – End of Period, including restricted cash, were $ 559.5 million, compared with $ 517.5 million.
- Short-term borrowings were $ 707.3 million as of October 3, 2026, compared with $ 261.3 million as of December 31, 2025.
- Non-current portion of long-term debt was $ 2,806.1 million as of October 3, 2026, compared with $ 521.5 million as of December 31, 2025.
- Total assets were $ 10,849.9 million as of October 3, 2026, compared with $ 6,310.4 million as of December 31, 2025.
- Goodwill was $ 3,845.5 million and other intangible assets, net, were $ 2,957.2 million as of October 3, 2026.
- Nine Months 2026 acquisitions, net of cash acquired, were $ (3,569.3) million.
- Nine Months 2026 capital expenditures were $ (84.2) million, compared with $ (80.9) million in the prior-year period.
- Nine Months 2026 long-term debt issued, net of debt issuance costs, was $ 2,868.3 million; long-term debt repayments were $ (1,117.4) million.
- Nine Months 2026 net change in cash and cash equivalents was $ (1,184.2) million. The prior-year period was $ 77.5 million.
Analysis
ITT reported a strong third quarter, led by acquisition-driven scale and continued organic growth. Revenue increased 44.2% to $ 1,440.6 million, with SPX FLOW contributing 35 points of growth, while organic revenue growth was 7.6%. Orders increased 57.7% to $ 1,562.6 million and organic orders growth was 20.5%. Management attributed the organic result to CCT aerospace and defense connectors, FT pump projects and valves, energy and biopharma demand, as well as pricing actions and program wins.
Profitability showed a clear split between reported and adjusted results. GAAP operating income increased 26.1% to $ 226.8 million, but GAAP operating margin declined 230 bps to 15.7%, reflecting acquisition-related intangible amortization and costs. Adjusted operating income rose 54.8% to $ 303.1 million and adjusted operating margin increased 140 bps to 21.0%. GAAP diluted EPS declined 14.8% to $ 1.38, while adjusted diluted EPS rose 19.6% to $ 2.26. Higher interest expense, weighted-average share count and effective tax rate associated with the acquisition were offsets to adjusted earnings growth.
Flow Technologies accounted for the largest revenue increase, with revenue of $ 764.3 million, up 99.1%, including SPX FLOW. Its reported operating margin fell 770 bps to 13.7%, while adjusted operating margin declined 40 bps to 22.4% and improved 100 bps sequentially. Motion Technologies remained modestly positive, with revenue up 2.3% and operating margin up 100 bps to 20.6%. CCT delivered the strongest underlying growth, with revenue up 21.1%, organic revenue growth of 18.6%, and operating margin up 270 bps to 20.5%.
Cash generation accelerated in the quarter, as net cash from operating activities increased 79.6% to $ 312.5 million and free cash flow increased 87.0% to $ 288.4 million. The nine-month cash flow statement also reflects the scale of the SPX FLOW transaction, including $ (3,569.3) million of acquisitions, net of cash acquired, and long-term debt issued of $ 2,868.3 million. Cash and cash equivalents were $ 558.1 million, short-term borrowings were $ 707.3 million and non-current long-term debt was $ 2,806.1 million at October 3, 2026.
The company raised full-year expectations across its key metrics. It now expects organic revenue growth of 7% to 9%, total revenue growth of 41% to 43%, adjusted operating margin of 20.2% to 21.0%, EPS of $4.65 to $4.73, adjusted EPS of $8.54 to $8.62 and free cash flow of $600 million to $620 million. The key execution issue is converting order momentum, SPX FLOW cost and revenue synergies, and pricing and productivity actions into the guided margin and cash flow outcomes while absorbing acquisition-related amortization, costs and higher interest expense.
Management, verbatim
ITTers around the world delivered yet another strong quarter as they executed relentlessly across the business. Our teams continue to win in the market, whilst our acquisitions are enhancing the strength of our portfolio and compounding ITT's long-term value creation. At SPX FLOW, we are executing with discipline and speed, delivering high-single-digit growth and capturing cost synergies ahead of schedule. We are unlocking revenue synergies as we leverage our expanded capabilities, global reach and customer relationships. And with a healthy backlog and orders momentum, we are well-positioned to continue driving growth and margin expansion next year whilst building an even stronger ITT.
Luca Savi, Chief Executive Officer and President
Davide is a proven leader and disciplined operator with a strong track record of delivering results.
Luca Savi, Chief Executive Officer and President
Not in the filing
stated, not guessed- Previous-period outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Q3 2026 gross margin and prior-year gross margin were not reported.
- Q3 2026 effective tax rate and prior-year effective tax rate were not reported.
- Quarterly share repurchases and quarterly dividends paid were not reported.
- A reported backlog value and prior-year backlog comparison were not provided.
- Prior-quarter figures were not reported for the key quarterly metrics.
- Full-year 2026 guidance for gross margin, operating expenses and tax rate was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
ITT Inc. filed a Form 8‑K reporting Q3 2026 results and updated its full‑year guidance.
Ticker impact
raised guidance for full-year EPS to $4.65‑$4.73 and adjusted EPS to $8.54‑$8.62
likely upward pressure as investors price in the raised guidance
Guidance lift signals higher future profitability; market typically rewards such earnings upgrades.
Market effects
Industrial conglomerates may see renewed interest as ITT's growth highlights demand in aerospace, defense, and flow technologies.
U.S. industrial sector could receive a modest boost from ITT's upbeat outlook.
Limited to investors tracking U.S. industrials; no broad macro effect.
Counterpoint
If the integration of SPX FLOW faces execution risk, the guidance raise could be premature.
Key entities
- companyITT Inc.
Industrial conglomerate reporting earnings and guidance.
