Pentair (NYSE:PNR) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Pentair (NYSE:PNR) released its quarterly earnings results on Tuesday. The industrial products company reported $1.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.12 by $0.02, FiscalAI reports. Pentair had a return on equity of 20.62% and a net margin of 16.24%.The firm had revenue of $932.60 million for the quarter, compared to the consensus estimate of $943.24 million. During the same quarter last year, the business posted $1.39 EPS. The firm’s quarterly revenue was down 17.0% compared to the same quarter last year. Pentair updated its Q3 2026 guidance to 1.050-1.080 EPS.

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

• Pentair reported a challenging second quarter, with sales down 17% year over year to $933 million and adjusted EPS of $1.14. Results were primarily affected by a roughly $170 million Pool channel inventory destocking.
• Pool sales fell 42% and segment income declined 62%, prompting full-year Pool sales guidance of down 18%-22% and third-quarter sales guidance of down 23%-25%. Management expects channel inventories to be normalized by the end of Q3, but acknowledged that rebuilding dealer relationships and recapturing aftermarket share could take 6-18 months.
• Flow and Water Solutions performed strongly, delivering record return on sales even excluding tariff refunds; Flow sales rose 5% and Water Solutions segment income increased 17%. Management expects improved revenue growth in both businesses during the second half of 2026, supported by productivity initiatives and demand in data centers, commercial buildings, desalination, and pro-channel markets.
• Pentair agreed to acquire Taco Group Holdings for $1.4 billion, expanding its hydronics, HVAC, plumbing, and data-center infrastructure offerings. The deal is expected to add $30 million in run-rate cost synergies, contribute $0.10-$0.15 of adjusted EPS accretion in 2027, and increase exposure to recurring aftermarket demand, although leverage is expected to rise to approximately 2.4 times at closing.
• The company reaffirmed full-year adjusted EPS guidance of $4.60-$4.80 and total sales guidance of down 4%-7%. Pentair also repurchased $150 million of shares, increased its dividend 8%, and said it expects robust Pool growth in 2027 as inventory and commercial execution improve.

Pentair Price Performance

Shares of PNR traded down $2.40 during trading hours on Thursday, reaching $64.19. 711,252 shares of the company traded hands, compared to its average volume of 2,171,738. The stock has a market capitalization of $10.37 billion, a PE ratio of 16.13, a price-to-earnings-growth ratio of 1.45 and a beta of 1.03. The stock has a fifty day simple moving average of $71.90 and a 200 day simple moving average of $85.31. Pentair has a fifty-two week low of $57.60 and a fifty-two week high of $113.95. The company has a quick ratio of 1.19, a current ratio of 1.45 and a debt-to-equity ratio of 0.43.

Pentair Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Friday, July 24th will be given a $0.27 dividend. This represents a $1.08 annualized dividend and a dividend yield of 1.7%. The ex-dividend date is Friday, July 24th. Pentair’s dividend payout ratio is currently 26.47%.

Analysts Set New Price Targets

PNR has been the subject of a number of research reports. Stifel Nicolaus reiterated a “hold” rating and set a $65.00 price target (down from $103.00) on shares of Pentair in a research report on Thursday, July 16th. Wolfe Research cut Pentair from an “outperform” rating to a “peer perform” rating in a report on Thursday, July 9th. Robert W. Baird decreased their target price on Pentair from $83.00 to $80.00 and set an “outperform” rating on the stock in a research report on Wednesday. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $81.00 target price on shares of Pentair in a report on Monday. Finally, TD Cowen cut their price target on Pentair from $75.00 to $65.00 and set a “sell” rating for the company in a research note on Wednesday. Eight investment analysts have rated the stock with a Buy rating, six have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $89.94.

Institutional Trading of Pentair

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Wexford Capital LP purchased a new stake in shares of Pentair in the third quarter valued at $26,000. Motiv8 Investments LLC purchased a new stake in Pentair in the 4th quarter valued at about $27,000. Aster Capital Management DIFC Ltd acquired a new position in shares of Pentair during the 4th quarter valued at about $43,000. Intesa Sanpaolo Wealth Management purchased a new position in shares of Pentair during the 4th quarter worth about $44,000. Finally, Zions Bancorporation National Association UT lifted its holdings in shares of Pentair by 77.4% during the 4th quarter. Zions Bancorporation National Association UT now owns 479 shares of the industrial products company’s stock worth $50,000 after acquiring an additional 209 shares during the period. 92.37% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Pentair

Here are the key news stories impacting Pentair this week:

• Positive Sentiment: Pentair reported second-quarter adjusted EPS of $1.14, ahead of the $1.12 analyst consensus. Management is also pursuing the approximately $1.4 billion acquisition of Taco Group Holdings to expand into HVAC, commercial water systems and data-center infrastructure—markets that could benefit from long-term AI-related investment. Pentair reaffirms outlook and Taco acquisition
• Neutral Sentiment: Analyst views are mixed. Robert W. Baird lowered its price target to $80 while maintaining an “outperform” rating, whereas TD Cowen cut its target to $65 and assigned a “sell” rating, reflecting uncertainty about the recovery and Taco integration. Pentair analyst price-target changes
• Negative Sentiment: Second-quarter revenue was $932.6 million, below the $943.2 million consensus and down 17% year over year. Weakness in the Pool segment, including channel destocking, pressured results, while the company’s outlook was reduced after preliminary results indicated a substantially weaker-than-expected quarter. Pentair’s third-quarter EPS guidance of $1.05–$1.08 also suggests near-term earnings pressure. Pentair second-quarter earnings report
• Negative Sentiment: Multiple shareholder-rights law firms, including Pomerantz, Robbins, Kirby McInerney and others, announced investigations into possible securities-law violations and fiduciary-duty breaches related to Pentair’s financial disclosures and the sharp selloff. These announcements do not establish wrongdoing, but they increase headline, litigation and reputational risk. Separately, Pentair disclosed potential compliance and liability risks connected with the Taco acquisition. Pomerantz Pentair investor alert Taco acquisition compliance risks

About Pentair

Pentair plc (NYSE: PNR) is a global provider of water treatment and fluid management solutions. The company designs, manufactures and sells a broad range of products that move, treat, monitor and control the flow of water and other fluids across residential, commercial, industrial and municipal markets. Pentair’s offerings are focused on improving water quality, conserving resources and enabling efficient fluid handling in applications from household water systems and pools to large-scale industrial and municipal installations.

Product lines include pumps and pumping systems, water filtration and purification equipment, valves and controls, heat exchangers, pool and spa systems, and a range of aftermarket parts and services.