Gates Industrial (NYSE:GTES) Updates FY 2026 Earnings Guidance

Gates Industrial (NYSE:GTES) issued an update on its FY 2026 earnings guidance on Friday. The company provided earnings per share guidance of 1.620-1.700 for the period, compared to the consensus estimate of 1.620. The company issued revenue guidance of $3.5 billion-$3.6 billion, compared to the consensus revenue estimate of $3.6 billion.

Gates Industrial Stock Performance

Gates Industrial stock traded up $2.23 during trading hours on Friday, hitting $28.01. The stock had a trading volume of 4,235,054 shares, compared to its average volume of 2,274,585. The company has a 50-day moving average of $26.63 and a two-hundred day moving average of $25.36. The company has a quick ratio of 2.66, a current ratio of 3.67 and a debt-to-equity ratio of 0.61. Gates Industrial has a fifty-two week low of $20.88 and a fifty-two week high of $29.17. The company has a market cap of $7.12 billion, a PE ratio of 29.18 and a beta of 1.25.

Gates Industrial (NYSE:GTES) last announced its quarterly earnings data on Friday, July 31st. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.42 by $0.02. The company had revenue of $941.60 million for the quarter, compared to analyst estimates of $925.44 million. Gates Industrial had a return on equity of 10.00% and a net margin of 7.23%.Gates Industrial’s revenue for the quarter was up 6.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.39 EPS. Gates Industrial has set its FY 2026 guidance at 1.620-1.700 EPS. On average, equities research analysts anticipate that Gates Industrial will post 1.53 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. Robert W. Baird decreased their price target on shares of Gates Industrial from $39.00 to $37.00 and set an “outperform” rating on the stock in a research note on Monday, May 4th. Wall Street Zen downgraded shares of Gates Industrial from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Royal Bank Of Canada lifted their target price on shares of Gates Industrial from $30.00 to $33.00 and gave the company an “outperform” rating in a research report on Thursday, July 16th. Morgan Stanley upped their target price on shares of Gates Industrial from $27.00 to $28.00 and gave the company an “equal weight” rating in a research note on Friday, May 29th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Gates Industrial in a research report on Monday, June 29th. Seven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $31.50.

Key Stories Impacting Gates Industrial

Here are the key news stories impacting Gates Industrial this week:

• Positive Sentiment: Gates reported second-quarter sales of $941.6 million, up 6.6% year over year, with core sales increasing 4.9%. Revenue exceeded analyst expectations of approximately $925.4 million, indicating solid demand across the business. Gates Industrial Reports Second-Quarter 2026 Results
• Positive Sentiment: Adjusted earnings were $0.44 per share, above the $0.42 analyst consensus and up from $0.39 a year earlier. The company also reported $170.9 million of net income, or $0.67 per diluted share, under its reported accounting measure. Gates Industrial Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Gates raised or reaffirmed a favorable FY 2026 adjusted EPS outlook of $1.62 to $1.70, with the midpoint above the current consensus estimate of $1.62. This suggests management expects earnings momentum to continue. Gates Industrial Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Full-year revenue guidance of $3.5 billion to $3.6 billion reaches the consensus estimate only at the upper end; the midpoint is modestly below expectations. Investors may therefore focus on whether stronger core sales can drive results toward the high end of the range. Gates Industrial Earnings Report

Institutional Investors Weigh In On Gates Industrial

Large investors have recently made changes to their positions in the company. Centaurus Financial Inc. boosted its position in Gates Industrial by 30.4% in the third quarter. Centaurus Financial Inc. now owns 10,431 shares of the company’s stock valued at $259,000 after buying an additional 2,431 shares in the last quarter. Algert Global LLC acquired a new stake in shares of Gates Industrial during the third quarter worth approximately $240,000. Oxford Asset Management LLP acquired a new stake in shares of Gates Industrial during the fourth quarter worth approximately $237,000. Bayesian Capital Management LP bought a new position in shares of Gates Industrial in the second quarter valued at approximately $233,000. Finally, Brooklyn Investment Group bought a new position in shares of Gates Industrial in the fourth quarter valued at approximately $222,000. Institutional investors own 98.50% of the company’s stock.

About Gates Industrial

Gates Industrial Corporation PLC (NYSE: GTES) is a leading global manufacturer of engineered power transmission belts and fluid power products. The company’s portfolio includes synchronous belts, V-belts, hose assemblies, fittings and hydraulic components designed to support a wide range of industrial and automotive applications. Gates Industrial serves sectors such as agriculture, mining, construction, manufacturing, transportation and consumer markets, offering solutions that improve performance, reliability and efficiency in demanding operating environments.

In its power transmission segment, Gates Industrial produces high-strength belts engineered for precise motion control and minimal maintenance.