ECL

The market expects Perimeter Solutions, SA (PRM) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of +15.9%. Revenues are expected to be $384.08 million, up 21.8% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Perimeter Solutions, SA, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.16%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that Perimeter Solutions, SA will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Perimeter Solutions, SA would post earnings of $0.43 per share when it actually produced earnings of $0.35, delivering a surprise of -18.60%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Perimeter Solutions, SA appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Ecolab (ECL), another stock in the Zacks Chemical - Specialty industry, is expected to report earnings per share of $2.18 for the quarter ended September 2026. This estimate points to a year-over-year change of +5.3%. Revenues for the quarter are expected to be $4.67 billion, up 12.2% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Ecolab has been revised 0.2% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.22%, reflecting a higher Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Ecolab will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Perimeter Solutions, SA (PRM) : Free Stock Analysis Report Ecolab Inc. (ECL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Investing.com -- Bank of America analysts have identified a challenging earnings environment for U.S. chemical stocks heading into third-quarter results, citing weak demand and margin pressures across the sector. However, the firm highlighted five stocks that stand out despite the difficult backdrop. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » In a note to clients, BofA analysts warned that calendar third-quarter 2026 earnings present a "tough risk-reward setup" for most companies in their coverage universe. The analysts pointed to multiple headwinds affecting both upstream and downstream chemical producers, including compressed margins, weak demand, and unfavorable currency movements. For upstream chemical companies, demand has proven quite weak, compressing margins over the monomer level. Some producers have faced difficulty passing through rising raw material and energy costs to customers. Downstream companies are experiencing the tightest window in price-cost spreads as inflation from late first quarter and second quarter finally impacts income statements. Additional pressures include weaker automotive builds, higher interest rates, and soft residential investment. These factors are eliminating any conservatism companies may have built into their outlooks. A stronger U.S. dollar moving into the fourth quarter adds further headwinds to the sector. Despite the cautious overall outlook, BofA analysts expressed positive views on five stocks heading into results: Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks » 1. Celanese Corporation (NYSE:CE) - The firm identified CE as one of the few chemical stocks with favorable risk-reward characteristics in the current earnings environment. 2. Ecolab Inc (NYSE:ECL) - ECL was highlighted as a stock where BofA maintains a positive predisposition ahead of third-quarter results. 3. Element Solutions Inc (NYSE:ESI) - ESI stands among the select group of chemical names the firm views favorably entering the reporting period. 4. Dow Inc (NYSE:DOW) - Despite sector-wide challenges, DOW was singled out as a name with better positioning for the upcoming earnings season. 5. International Flavors & Fragrances Inc (NYSE:IFF) - IFF rounds out the list of stocks where BofA analysts see relatively better prospects compared to the broader chemical sector. Original Article BofA flags five chemical stocks amid tough Q3 earnings outlook European shares rise on earnings support; Big Tech results awaited Nasdaq up 1% as tech lifted by SpaceX, Tesla on Musk's hint at possible merger

Ecolab ECL is scheduled to release third-quarter 2026 results on Oct. 27, before the opening bell. In the last reported quarter, the company delivered earnings that surpassed the estimates by 0.48%. ECL's earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 0.49%. Currently, the Zacks Consensus Estimate for revenues is pegged at $4.67 billion, indicating growth of 12.2% year over year. The consensus mark for earnings is pinned at $2.18 per share, indicating an improvement of 5.3%. Ecolab is expected to have sustained its growth momentum in the third quarter of 2026, supported by stronger pricing, resilient demand across core businesses and continued strength in its high-growth platforms. Global High-Tech, Life Sciences, Ecolab Digital and Pest Elimination are likely to have remained key growth drivers, benefiting from AI infrastructure investments, market share gains in bioprocessing, rising adoption of connected solutions and continued customer demand for productivity-enhancing technologies. However, elevated commodity costs, ongoing geopolitical disruptions and continued investments in growth businesses are likely to have influenced the company's margin and earnings performance. Within the Global Industrial segment, Global High-Tech is expected to have remained a key contributor to growth, supported by strong demand for semiconductor manufacturing solutions and data center cooling technologies. In the second quarter, the business delivered 29% growth, reflecting the rapid expansion of AI infrastructure. The acquisition of CoolIT Systems, which closed in July, is expected to have further strengthened Ecolab's exposure to direct-to-chip liquid cooling and expanded its ability to provide integrated water, energy and cooling solutions. Life Sciences is also likely to have remained a strong performer, following 15% growth in the second quarter, driven by market share gains in bioprocessing, pharmaceuticals and personal care, as well as improved purification performance. Investments in manufacturing capacity and innovation are expected to support further growth, although continued spending to expand the business could influence reported margins. Meanwhile, Food & Beverage is likely to have benefited from the One Ecolab strategy and cross-selling opportunities, while Paper and Heavy Water could have continued their gradual recovery following signs of stabilization in the preceding quarter. The Global Institutional & Specialty segment is expected to have maintained steady growth, supported by market share gains, value pricing and demand from restaurant, hotel, quick-service restaurant and specialty customers. In the second quarter, the segment delivered 4% organic growth despite softer U.S. restaurant traffic, highlighting the resilience of Ecolab's customer relationships and its ability to outperform underlying markets. Continued cross-selling under the One Ecolab initiative and demand for solutions that improve productivity while reducing water and energy consumption are likely to have supported performance. Pest Elimination is also expected to have benefited from the expansion of its Pest Intelligence platform and connected-device offerings, while Ecolab Digital is likely to have continued to capitalize on growing adoption of software and subscription-based solutions. Pricing realization and commodity inflation are expected to remain key factors influencing Ecolab's third-quarter performance. In the second quarter, pricing strengthened to 4%, and management expected pricing to reach 5% to 6% in the second half of 2026 as energy surcharges were fully realized. The company also anticipated high-single-digit commodity cost inflation for the remainder of the year. Although pricing actions are expected to help offset higher input costs, the timing of recovery and the impact of acquisition-related expenses could influence reported earnings and margins. Management's second-half outlook called for organic sales growth of 6% to 7% and an adjusted operating income margin of 19%, while the full-year 2026 adjusted EPS outlook was raised to $8.05-$8.25, representing growth of 7% to 10% year over year. Investors will look for evidence that pricing is keeping pace with inflation, volumes remain resilient and productivity initiatives continue to support profitability. Investors will also monitor the contribution from CoolIT and the pace of integration across Ecolab's Global High-Tech platform. Management expects the combined Global High-Tech business, including Ovivo and CoolIT, to grow more than 25% annually and reach $4 billion in sales by 2030, with an operating income margin of 25%. However, management indicated that it was too early to revise CoolIT's near-term growth expectations following the acquisition, despite its strong pre-acquisition sales momentum. Commentary on demand across AI infrastructure, Life Sciences growth, the recovery in traditional industrial businesses and the trajectory of pricing and margins will be important as Ecolab works toward its long-term targets of 5% to 7% organic sales growth, a 20% operating income margin in 2027 and adjusted EPS growth of 12% to 15% beyond 2026. Ecolab Inc. price-eps-surprise | Ecolab Inc. Quote Our proven model does not predict an earnings beat for ECL this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.22%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Zacks Rank: The company has a Zacks Rank #4 (Sell) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time: Phibro Animal Health PAHC has an Earnings ESP of +2.10% and a Zacks Rank #1. The company is expected to release first-quarter fiscal 2027 results soon. PAHC's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company's first-quarter EPS indicates an increase of 8.2% from the year-ago quarter's figure. IDEXX Laboratories IDXX has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2. IDXX's earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company's third-quarter EPS implies an increase of 9.1% from the year-ago quarter's figure. Becton, Dickinson and Company BDX or BD has an Earnings ESP of +3.28% and a Zacks Rank #2. The company is due to release fourth-quarter fiscal 2026 results on Nov. 5. BD's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for the company's fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter's figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ecolab Inc. (ECL) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ecolab (ECL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 27, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This cleaning, food-safety and pest-control services company is expected to post quarterly earnings of $2.18 per share in its upcoming report, which represents a year-over-year change of +5.3%. Revenues are expected to be $4.67 billion, up 12.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.17% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Ecolab, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.22%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Ecolab will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Ecolab would post earnings of $2.08 per share when it actually produced earnings of $2.09, delivering a surprise of +0.48%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Ecolab doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ecolab Inc. (ECL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Saint Paul, Minnesota-based Ecolab Inc. (ECL) provides water, hygiene, and infection prevention solutions and services in the United States and internationally. The company has a market cap of $78 billion and operates through four segments: Global Water, Global Institutional & Specialty, Global Pest Elimination, and Global Life Sciences. ECL is expected to release its Q3 2026 earnings before the market opens on Tuesday, October 27. Ahead of the event, analysts expect the company's EPS to be $2.18 on a diluted basis, up 5.3% from $2.07 in the year-ago quarter. The company has matched or exceeded Wall Street's EPS estimates in each of its last four quarters. - A $40 Billion Reason Why SPCX Stock Is Down Today - Why This Wall Street Analyst Just Issued a Bold Prediction for Nebius Stock - Why Investors Are Celebrating Qualcomm Striking a Licensing Deal with Huawei — Which Is Still on the Entity List - Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For fiscal 2026, analysts project the company's EPS to be $8.16, up 8.4% from $7.53 in fiscal 2025. Moreover, its EPS is expected to rise by roughly 15% year over year (YoY) to $9.38 in fiscal 2027. ECL stock has declined marginally over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 16.2% rise and the State Street Materials Select Sector SPDR ETF's (XLB) 9.6% rise during the same time frame. ECL has suffered from a slew of reasons plaguing the broader market that have weighed on its shares: uneven industrial demand, cost pressures, concerns over the company's valuation and growth, to name a few. The company's acquisition of CoolIT Systems, a leader in direct liquid cooling for high‑density data centers, for $4.8 billion has also added to the same concern, showcasing a case of a trade-off between infrastructure spending and market demand. Despite that, the company has reported satisfactory results in its last earnings report. ECL's Q2 2026 earnings came in with the company surpassing its revenue and adjusted EPS consensus estimates, while coming in at $4.4 billion and $2.09, respectively. The company expects its full-year earnings to be in the range of $8.05 to $8.25 per share. Analysts are highly bullish on ECL, with the stock currently rated "Strong Buy" overall. Among the 27 analysts covering the stock, 18 are recommending a "Strong Buy," two suggest a "Moderate Buy," and seven suggest a "Hold." ECL's average analyst price target is $321.48, indicating an upside of 15.6% from the current levels. On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

It has been about a month since the last earnings report for Ecolab (ECL). Shares have added about 2.4% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Ecolab due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Ecolab has reported fourth-quarter 2025 adjusted earnings per share of $2.08, up 14.9% year over year. The bottom line surpassed the Zacks Consensus Estimate by 0.8%. GAAP earnings per share for the quarter was $1.98, up 19.3% year over year. Full-year adjusted earnings per share was $7.53, reflecting a 13.2% increase from the year-ago period. The metric topped the Zacks Consensus Estimate by a penny. ECL’s Revenue Details Revenues grossed $4.19 billion in the reported quarter, up 4.8% year over year. The metric topped the Zacks Consensus Estimate by 0.1%. Ecolab’s organic sales were $4 billion, up 2.9% from the prior-year period. Ecolab Digital sales increased 24% to $99 million, with double-digit growth across both software and enabling hardware subscriptions. Full-year revenues were $16.08 billion, reflecting a 2.2% improvement from the year-ago period on a reported basis (up 3% on an organic basis). The metric lagged the Zacks Consensus Estimate by 0.2%. Ecolab’s Segmental Analysis The Global Water segment’s fixed currency sales of $2.02 billion marked 2.5% year-over-year growth. Organic sales were $2 billion, up 2.2% year over year. The segment’s underlying sales grew mid-single digits, excluding Basic Industries and Paper. Light & Heavy’s progress was led by strength in Global High-Tech, improved growth in downstream and solid gains in manufacturing, which offset softer sales in Basic Industries. Robust new business gains in Food & Beverage, which leveraged the One Ecolab growth strategy, drove a further acceleration in sales growth. Lower Paper sales reflected new business wins that were offset by soft customer production rates. The Global Institutional & Specialty arm’s fixed currency sales were $1.49 billion, a year-over-year uptick of 2.8% on a reported basis. Organic sales were also $1.49 billion, up 2.7% year over year. Institutional unit’s underlying performance reflected good growth with hospitality customers and modestly higher sales to hospitals. Specialty unit delivered continued strong sales growth, driven by robust new business wins and continued value pricing. The Global Pest Elimination segment’s fixed currency sales of $307.2 million improved 6.7% year over year on a reported basis. Organic sales were $306.8 million, up 6.6% year over year. Strong organic sales growth was led by robust gains in food & beverage, restaurants and food retail, which continue to benefit from the One Ecolab growth strategy. The Global Life Sciences arm’s fixed currency sales and organic sales were $191.4 million each, reflecting year-over-year growth of 6.5% on both a reported and organic basis. Per management, year-over-year fixed currency and organic sales growth was driven by continued double-digit growth in bioprocessing and strong growth in pharmaceutical & personal care despite ongoing capacity constraints within Life Sciences’ industrial water purification business. ECL’s Q4 Margin Analysis In the quarter under review, Ecolab’s gross profit improved 6.4% year over year to $1.85 billion. The gross margin expanded 69 basis points (bps) to 44%. Selling, general and administrative expenses increased 1% year over year to $1.06 billion. Adjusted operating profit totaled $786.6 million, increasing 14.6% from the prior-year quarter. The adjusted operating margin in the quarter expanded 162 bps to 18.7%. Ecolab’s Financial Position The company exited fourth-quarter 2025 with cash and cash equivalents of $646.2 million compared with $1.96 billion at the end of the third quarter. Total debt at the end of fourth-quarter 2025 was $8.24 billion compared with $8.07 billion at third-quarter end. Meanwhile, Ecolab has a consistent dividend-paying history, with five-year annualized dividend growth of 8.09%. ECL’s Guidance for Q1 & 2026 Ecolab has provided its outlook for the first quarter and has initiated the full-year 2026 guidance. The company expects adjusted earnings per share of $1.67-$1.73 for the first quarter, suggesting an 11%-15% rally from the year-ago period’s actual. The Zacks Consensus Estimate is pegged at $1.69. Including the acquisition of Ovivo Electronics, ECL expects reported sales to increase 7%-9% and organic sales to rise 3%-4% in 2026. For 2026, Ecolab expects adjusted earnings per share of $8.43-$8.63 (indicating an uptick of 12%-15% from the comparable 2024 period’s reported number). The Zacks Consensus Estimate for adjusted earnings per share is pegged at $8.44. Ecolab has reported second-quarter 2026 adjusted earnings of $2.09 per share, up 10.6% year over year. The figure surpassed the Zacks Consensus Estimate by 0.4%. GAAP earnings per share for the quarter was $1.90, up 3.3% year over year. Revenues rose 9.7% year over year to $4.42 billion, surpassing the consensus estimate by 0.5%. Organic sales increased 5%, aided by stronger pricing, volume growth and solid demand across Ecolab’s core businesses and growth engines. Ecolab’s Digital sales increased 27% year over year to $121 million, driven by strong growth across software and enabling hardware subscriptions. Organic sales were $4.28 billion, up 5% from $4.09 billion in the year-ago quarter. Reported volume increased 1% despite a nearly 1% headwind from customer operations disrupted by the Middle East conflict. Pricing improved to 4%, reflecting the initial benefits of the company’s energy surcharge implementation. The Global Water segment’s fixed-currency sales increased 10% year over year to $2.22 billion, including a 6% contribution from the Ovivo Electronics acquisition. Organic sales rose 4%, led by 29% growth in Global High-Tech and accelerating gains in Food & Beverage and Light Water. Organic operating income for the segment increased 1% to $333.6 million. Improved pricing gradually offset higher commodity costs and growth-related investments. Meanwhile, the impact of softer demand in Heavy Water and Paper continued to ease on the back of new business wins. The Global Institutional & Specialty segment’s fixed-currency and organic sales increased 4% each to $1.62 billion. Institutional benefited from improved growth among hospitality customers, while Specialty posted mid-single-digit growth, supported by share gains in quick-service restaurants and food retail. The Global Pest Elimination segment’s fixed-currency sales rose 9% year over year to $350.5 million. Organic sales increased 7%, driven by strong gains across restaurants, food retail and food and beverage. Targeted acquisitions in North America contributed 2% to growth. The segment’s organic operating income increased 12% year over year to $70.3 million. Strong sales growth and improved productivity more than offset continued investments in the business, including pest intelligence capabilities. The Global Life Sciences segment’s fixed-currency and organic sales increased 15% each to $221 million. The improvement was driven by continued share gains in bioprocessing and pharmaceutical and personal care, along with better performance in purification. Organic operating income surged 46% year over year to $58.5 million, reflecting accelerated sales growth and strong bioprocessing performance. These gains more than offset higher commodity costs and investments in innovation, capacity and global capabilities. In the quarter under review, Ecolab’s reported gross profit increased 8% year over year to $1.95 billion. However, the reported gross margin contracted 70 basis points (bps) to 44.1%. Adjusted gross margin declined 60 bps to 44.2%, reflecting the impact of the Ovivo Electronics acquisition. Organic gross margin improved 10 bps to 44.9% as stronger pricing offset rising commodity costs. Selling, general and administrative expenses increased 6.9% year over year to $1.14 billion. Adjusted operating profit totaled $809 million, up 9.7% from the prior-year quarter. The adjusted operating margin remained unchanged at 18.3%, while the organic operating margin expanded 40 bps to 18.8%. Ecolab exited the second quarter of 2026 with cash and cash equivalents of $5.14 billion, up sharply from $519.8 million at the end of the first quarter. Total debt increased to $13.18 billion from $8.49 billion over the same period. The sequential jump in cash appears to be primarily financing-driven. Ecolab raised new debt to fund recent acquisitions, including CoolIT, and a portion of those proceeds was likely still held in cash at quarter-end. Net interest expense also increased to $73.1 million from $63.2 million a year earlier, reflecting the impact of acquisition-related borrowings. Ecolab repurchased approximately 1.2 million shares during the quarter. Meanwhile, Ecolab has a consistent dividend-paying history, with five-year annualized dividend growth of 8.75%. Ecolab raised its 2026 adjusted earnings guidance to $8.05-$8.25 per share from $8.03-$8.23. The revised range indicates growth of 7%-10% and incorporates short-term non-cash amortization and financing costs related to the CoolIT acquisition. For the third quarter, ECL expects adjusted earnings of $2.13-$2.23 per share, representing growth of 3%-8%. In the second half, reported sales are projected to increase 12%-14%, while organic sales growth is expected to accelerate to 6%-7%. Management expects second-half adjusted operating margin of approximately 19% and organic operating margin of about 20%. Accelerating pricing, ongoing share gains and improved productivity are expected to support the outlook. In the past month, investors have witnessed a upward trend in estimates review. Currently, Ecolab has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Ecolab has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Ecolab belongs to the Zacks Chemical - Specialty industry. Another stock from the same industry, Element Solutions (ESI), has gained 3.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Element Solutions reported revenues of $977.9 million in the last reported quarter, representing a year-over-year change of +56.4%. EPS of $0.47 for the same period compares with $0.37 a year ago. For the current quarter, Element Solutions is expected to post earnings of $0.48 per share, indicating a change of +17.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.3% over the last 30 days. Element Solutions has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ecolab Inc. (ECL) : Free Stock Analysis Report Element Solutions Inc. (ESI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

International Flavors & Fragrances Inc. IFF reported second-quarter 2026 adjusted earnings of 82 cents per share, missing the Zacks Consensus Estimate of $1.14. The company’s second-quarter 2025 adjusted earnings came in at 77 cents, excluding the results from discontinued operations.Including one-time items, the company reported earnings of 20 cents per share compared with $2.33 in the prior-year quarter.In late May, International Flavors announced that it inked a deal with CVC Capital Partners to sell its Food Ingredients business. The deal is in sync with International Flavors’ portfolio transformation strategy, which is expected to solidify its focus on its innovation-driven businesses. Starting second-quarter 2026, the Food Ingredients disposal group is reported as discontinued operations. International Flavors & Fragrances Inc. price-consensus-eps-surprise-chart | International Flavors & Fragrances Inc. Quote Net sales rose 1.8% year over year to $1.95 billion but missed the consensus estimate of $2.68 billion. Comparable currency-neutral sales advanced 6%, supported by broad-based growth across Taste, Health & Biosciences, and Scent.International Flavors’ Q2 Gross Margin Improves Y/YIn the reported quarter, IFF’s cost of goods sold increased 0.5% year over year to $1.10 billion. Gross profit rose 3.5% to $853 million. The gross margin came in at 43.7% compared with 42.9% in the year-ago quarter.Research and development expenses remained flat year over year at $170 million. Selling and administrative expenses increased 6.8% to $437 million in the second quarter. Adjusted operating EBITDA came in at $408 million, up 2.3% from the prior-year quarter’s $399 million. The adjusted operating EBITDA margin was 20.9% compared with 20.8% in the year-ago quarter. Net sales in the Taste segment increased 5.2% year over year to $688 million in the June-end quarter. The figure surpassed our estimate of $647 million. Adjusted operating EBITDA was $124 million, up 6% year over year from $117 million, driven by volume growth and favorable net pricing. Our estimate for the segment’s adjusted EBITDA was $127 million. The segment’s adjusted operating EBITDA margin was 18% compared with 17.9% in the prior-year quarter.Sales generated in the Health & Biosciences segment were $601 million, growing 7.5% from the year-earlier quarter’s $559 million. The figure matched our estimate. Growth was led by Grain Processing, Food Biosciences and Animal Nutrition.Adjusted operating EBITDA was $150 million in the quarter, up 7.9% year over year from $139 million. Our estimate for the segment’s adjusted EBITDA was $154 million. The segment’s adjusted operating EBITDA margin was 25% compared with 24.9% a year ago.The Scent segment’s sales were $665 million, up 10.3% year over year from $603 million. Our estimate was $624 million. The upside was driven by double-digit growth in Fragrance Ingredients and high-single-digit growth in Consumer Fragrance. Fine Fragrance posted low-single-digit growth, with results affected by the Middle East conflict.Adjusted operating EBITDA increased 10.7% to $134 million from $121 million in the prior-year quarter. Our model had projected EBITDA of $131 million. The adjusted operating EBITDA margin was 20.2% compared with 20.1% in the year-ago quarter. IFF had cash and cash equivalents of $569 million at the end of the second quarter of 2026, down from $590 million at the end of 2025. Long-term debt was $4.74 billion at June 30, 2026, largely unchanged from the end of 2025. Net debt to credit-adjusted EBITDA was 2.5X.International Flavors generated $679 million in cash from operating activities in the first six months of 2026, up from $368 million in the prior-year period. For 2026, International Flavors expects sales from continuing operations of $7.4 billion to $7.6 billion. Adjusted operating EBITDA is projected between $1.53 billion and $1.60 billion. The outlook excludes $3.2 billion in sales and $520 million in adjusted operating EBITDA related to discontinued operations.The company expects comparable currency-neutral sales growth of 2-4% and comparable currency-neutral adjusted operating EBITDA growth of 4-8%. Foreign exchange is projected to benefit sales growth by 1% and adjusted operating EBITDA growth by 2%.IFF also authorized an enhanced $2.5-billion share repurchase program, including a planned $500-million accelerated repurchase in the second half of 2026. The remaining $2 billion is expected to be executed after the Food Ingredients divestiture closes, with completion targeted by the end of 2027. IFF currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. In the past year, the company’s shares have gained 17.3% compared with the industry’s growth of 3.7%. Image Source: Zacks Investment Research Linde plc LIN reported second-quarter 2026 adjusted earnings of $4.50 per share, up 10% from $4.09 per share a year ago. The bottom line topped the Zacks Consensus Estimate of $4.49 per share by 0.22%.Linde’s sales increased 9% to $9.29 billion from $8.49 billion in the prior-year quarter, surpassing the Zacks Consensus Estimate of $8.96 billion by 3.68%.PPG Industries, Inc. PPG reported adjusted earnings of $2.23 per share in the second quarter of 2026, up 0.5% year over year and missed the Zacks Consensus Estimate of $2.26.PPG Industries’ sales rose 7.2% year over year to $4.5 billion and topped the consensus mark of $4.36 billion by 3.1%. Organic sales increased 4%, aided equally by higher volumes and selling prices.Ecolab Inc. ECL reported second-quarter 2026 adjusted earnings of $2.09 per share, up 10.6% year over year. The figure surpassed the Zacks Consensus Estimate by 0.4%.Ecolab sales rose 9.7% year over year to $4.42 billion, surpassing the consensus estimate by 0.5%. Organic sales increased 5%, aided by stronger pricing, volume growth and solid demand across Ecolab’s core businesses and growth engines. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Flavors & Fragrances Inc. (IFF) : Free Stock Analysis Report Ecolab Inc. (ECL) : Free Stock Analysis Report PPG Industries, Inc. (PPG) : Free Stock Analysis Report Linde PLC (LIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Adjusted EPS Growth: 11% increase. Organic Sales Growth: 5% increase. Pricing Increase: Strengthened to 4% in Q2, expected 5% to 6% in the second half. Volume Growth: 1% increase, despite a nearly 1% headwind from Middle East disruptions. Food & Beverage Growth: 7% increase. Institutional & Specialty Growth: 4% increase. Life Sciences Growth: 15% increase, with a mid-20% operating income margin. Ecolab Digital Growth: 27% increase. Pest Elimination Growth: 7% increase. Global High-Tech Growth: 29% increase, approaching $1.5 billion in annualized sales. Expected Organic Sales Growth (Second Half): 6% to 7%. Expected Adjusted Operating Income Margin (Second Half): 19%. 2026 EPS Outlook: $8.05 to $8.25, rising 7% to 10% versus last year. Warning! GuruFocus has detected 3 Warning Signs with MEX:RA. Is ECL fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ecolab Inc (NYSE:ECL) reported an 11% growth in adjusted EPS, driven by a 5% increase in organic sales and stable organic gross margins. The company successfully implemented a global energy surcharge, strengthening pricing to 4% in the second quarter, with expectations to reach 5% to 6% in the second half. Ecolab's growth engines, including Life Sciences and Global High-Tech, showed strong momentum, with Life Sciences accelerating to 15% growth and Global High-Tech to 29%. The acquisition of CoolIT Systems is off to a strong start, contributing significantly to the growth of the Global High-Tech segment. Ecolab Digital grew 27%, reflecting strong adoption of software and connected solutions, with expectations for long-term growth of more than 20%. Ecolab faced a nearly 1% volume headwind due to customer operations disrupted by conflict in the Middle East. The company's underperforming businesses, representing about 15% of sales, experienced low single-digit sales declines. Despite strong sales growth in Life Sciences, the reported operating income margin is expected to decrease in the third quarter due to continued investments. The integration of CoolIT Systems involves significant noncash amortization and financing costs, impacting short-term EPS. Ecolab's core businesses, while improving, are growing at mid-single digits, which is slower compared to the company's growth engines. Q: Can you explain how Ecolab plans to achieve the 20% operating margin target for 2027 despite the additional amortization from the CoolIT acquisition? A: Christophe Beck, Chairman and CEO, confirmed the 20% operating margin target for 2027, emphasizing the company's commitment to achieving this goal. He noted that most of Ecolab's businesses are already close to or above 20% margins. Scott Kirkland, CFO, added that the Nalco amortization will fall off next year, which will help offset the CoolIT amortization. Q: Could you provide more details on the current mix of the Global High-Tech business and your confidence in reaching the $4 billion target by 2030? A: Christophe Beck explained that the Global High-Tech business is approximately $1.5 billion in annualized sales, with each segment (legacy business, CoolIT, and Ovivo) contributing roughly $0.5 billion. He expressed confidence in achieving the $4 billion target by 2030, citing strong growth across all segments. Q: How does the integrated end-to-end cooling platform contribute to cross-selling opportunities in the Global High-Tech business? A: Christophe Beck highlighted that the integration of CoolIT's liquid cooling technologies with Ecolab's 3D TRASAR digital capabilities significantly expands sales opportunities. This integration allows Ecolab to offer comprehensive solutions that optimize cooling performance while minimizing water and energy usage, enhancing cross-selling potential. Q: What factors are driving the strong performance in the Life Sciences segment, particularly in bioprocessing? A: Christophe Beck attributed the strong performance to investments in capacity, capabilities, and innovation. He noted that Ecolab has been gaining market share and is now back on track with its return expectations. The company's focus on being the best-performing partner for customers has been key to its success. Q: Can you discuss the pricing strategy and how it is impacting margins, particularly with the energy surcharge? A: Christophe Beck explained that Ecolab has become adept at value pricing, allowing the company to recover costs and improve margins within a short timeframe. The energy surcharge and structural pricing are both contributing to margin stability, with the company exiting Q2 with a 5% pricing increase, supporting positive gross margin expectations for the second half. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Ecolab Inc. ECL reported second-quarter 2026 adjusted earnings of $2.09 per share, up 10.6% year over year. The figure surpassed the Zacks Consensus Estimate by 0.4%. GAAP EPS for the quarter was $1.90, up 3.3% year over year. Revenues rose 9.7% year over year to $4.42 billion, surpassing the consensus estimate by 0.5%. Organic sales increased 5%, aided by stronger pricing, volume growth and solid demand across Ecolab’s core businesses and growth engines. Shares of Ecolab gained nearly 1.33% in today’s pre-market trading. Ecolab’s Digital sales increased 27% year over year to $121 million, driven by strong growth across software and enabling hardware subscriptions. Organic sales were $4.28 billion, up 5% from $4.09 billion in the year-ago quarter. Reported volume increased 1% despite a nearly 1% headwind from customer operations disrupted by the Middle East conflict. Pricing improved to 4%, reflecting the initial benefits of the company’s energy surcharge implementation. The Global Water segment’s fixed-currency sales increased 10% year over year to $2.22 billion, including a 6% contribution from the Ovivo Electronics acquisition. Organic sales rose 4%, led by 29% growth in Global High-Tech and accelerating gains in Food & Beverage and Light Water. Organic operating income for the segment increased 1% to $333.6 million. Improved pricing gradually offset higher commodity costs and growth-related investments. Meanwhile, the impact of softer demand in Heavy Water and Paper continued to ease on the back of new business wins. The Global Institutional & Specialty segment’s fixed-currency and organic sales increased 4% each to $1.62 billion. Institutional benefited from improved growth among hospitality customers, while Specialty posted mid-single-digit growth, supported by share gains in quick-service restaurants and food retail. The Global Pest Elimination segment’s fixed-currency sales rose 9% year over year to $350.5 million. Organic sales increased 7%, driven by strong gains across restaurants, food retail and food and beverage. Targeted acquisitions in North America contributed 2% to growth. The segment’s organic operating income increased 12% year over yearto $70.3 million. Strong sales growth and improved productivity more than offset continued investments in the business, including pest intelligence capabilities. The Global Life Sciences segment’s fixed-currency and organic sales increased 15% each to $221 million. The improvement was driven by continued share gains in bioprocessing and pharmaceutical and personal care, along with better performance in purification. Organic operating income surged 46% year over yearto $58.5 million, reflecting accelerated sales growth and strong bioprocessing performance. These gains more than offset higher commodity costs and investments in innovation, capacity and global capabilities. Ecolab Inc. price-consensus-eps-surprise-chart | Ecolab Inc. Quote In the quarter under review, Ecolab’s reported gross profit increased 8% year over year to $1.95 billion. However, the reported gross margin contracted 70 basis points (bps) to 44.1%. Adjusted gross margin declined 60 bps to 44.2%, reflecting the impact of the Ovivo Electronics acquisition. Organic gross margin improved 10 bps to 44.9% as stronger pricing offset rising commodity costs. Selling, general and administrative expenses increased 6.9% year over year to $1.14 billion. Adjusted operating profit totaled $809 million, up 9.7% from the prior-year quarter. The adjusted operating margin remained unchanged at 18.3%, while the organic operating margin expanded 40 bps to 18.8%. Ecolab exited the second quarter of 2026 with cash and cash equivalents of $5.14 billion, up sharply from $519.8 million at the end of the first quarter. Total debt increased to $13.18 billion from $8.49 billion over the same period. The sequential jump in cash appears to be primarily financing-driven. Ecolab raised new debt to fund recent acquisitions, including CoolIT, and a portion of those proceeds was likely still held in cash at quarter-end. Net interest expense also increased to $73.1 million from $63.2 million a year earlier, reflecting the impact of acquisition-related borrowings. Ecolab repurchased approximately 1.2 million shares during the quarter. Meanwhile, Ecolab has a consistent dividend-paying history,with five-year annualized dividend growth of 8.75%. Ecolab raised its 2026 adjusted earnings guidance to $8.05-$8.25 per share from $8.03-$8.23. The revised range indicates growth of 7%-10% and incorporates short-term non-cash amortization and financing costs related to the CoolIT acquisition. For the third quarter, ECL expects adjusted earnings of $2.13-$2.23 per share, representing growth of 3%-8%. In the second half, reported sales are projected to increase 12%-14%, while organic sales growth is expected to accelerate to 6%-7%. Management expects second-half adjusted operating margin of approximately 19% and organic operating margin of about 20%. Accelerating pricing, ongoing share gains and improved productivity are expected to support the outlook. Ecolab currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader medical space are McKesson MCK, Phibro Animal Health PAHC and Cardinal Health CAH. McKesson carries a Zacks Rank #2 (Buy) at present and has an estimated long-term growth rate of 13.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.09%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Globus Medical’s shares have gained 8.8% against the industry’s 12.7% decline in the year-to-date period. Phibro Animal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.5%. PAHC’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.25%. Phibro Animal Health stock has climbed 44.2% against the industry’s 17.1% decline in the year-to-date period. Cardinal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.27%. Cardinal Health’s shares have lost 2.6% compared with the industry’s 3.1% decline in the year-to-date period. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ecolab Inc. (ECL) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, Ecolab (ECL) reported revenue of $4.42 billion, up 9.7% over the same period last year. EPS came in at $2.09, compared to $1.89 in the year-ago quarter. The reported revenue represents a surprise of +0.4% over the Zacks Consensus Estimate of $4.4 billion. With the consensus EPS estimate being $2.08, the EPS surprise was +0.48%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Ecolab performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Fixed Currency Rates- Global Pest Elimination: $350.5 million compared to the $348.91 million average estimate based on three analysts. The reported number represents a change of +12.6% year over year. Net Sales- Fixed Currency Rates- Global Water: $2.22 billion versus $2.21 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +16.1% change. Net Sales- Fixed Currency Rates- Global Life Sciences: $221 million versus the three-analyst average estimate of $209.2 million. The reported number represents a year-over-year change of +25.1%. Net Sales- Fixed Currency Rates- Global Institutional & Specialty: $1.62 billion versus $1.65 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +7% change. Net Sales- Public Currency Rates- Global Life Sciences: $220.1 million versus $213.1 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +18.4% change. Net Sales- Public Currency Rates- Global Pest Elimination: $351.1 million versus the two-analyst average estimate of $345.2 million. The reported number represents a year-over-year change of +10.6%. Net Sales- Public Currency Rates- Global Institutional & Specialty: $1.62 billion versus the two-analyst average estimate of $1.65 billion. The reported number represents a year-over-year change of +4.9%. Net Sales- Public Currency Rates- Global Water: $2.22 billion versus the two-analyst average estimate of $2.23 billion. The reported number represents a year-over-year change of +12.5%. Operating Income (loss)- Fixed Currency Rates- Corporate: $-110 million versus $-58.5 million estimated by two analysts on average. Operating Income (loss)- Fixed Currency Rates- Global Water: $347.7 million versus $362.82 million estimated by two analysts on average. Operating Income (loss)- Fixed Currency Rates- Global Institutional & Specialty: $389.9 million compared to the $393.28 million average estimate based on two analysts. Operating Income (loss)- Public Currency Rates- Global Water: $348.8 million versus the two-analyst average estimate of $366.8 million. View all Key Company Metrics for Ecolab here>>> Shares of Ecolab have returned -2.6% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ecolab Inc. (ECL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Ecolab Inc.? Here are five stocks we like better. Ecolab raised its full-year 2026 adjusted EPS outlook to $8.05–$8.25, representing 7%–10% growth, after reporting 11% adjusted EPS growth and 5% organic sales growth in the second quarter. Growth was led by Life Sciences, Ecolab Digital, Pest Elimination and Global High-Tech, with Global High-Tech sales rising 29% amid demand from data centers and artificial-intelligence infrastructure. The company expects its expanded platform, including CoolIT and Ovivo, to reach $4 billion in sales by 2030. Ecolab expects second-half organic sales growth of 6%–7% and pricing growth of 5%–6% as energy surcharges take full effect, supporting its target of reaching a 20% operating-income margin in 2027. These 3 Water ETFs Could be Quiet Winners From Infrastructure Spending Ecolab (NYSE:ECL) reported second-quarter 2026 adjusted earnings-per-share growth of 11%, supported by 5% organic sales growth, stable organic gross margin and productivity gains, Chairman and Chief Executive Officer Christophe Beck said on the company’s earnings call. The company said pricing strengthened to 4% during the quarter as it implemented a global energy surcharge intended to offset higher commodity costs. Ecolab entered the period with limited surcharge pricing and expected the benefit to build during the quarter. Beck said the company now expects pricing in the 5% to 6% range during the second half as surcharge benefits are fully realized. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit 3 Strong Dividend Growers for Income Without Rate Risk Volumes increased 1%, despite what Ecolab described as an approximately 1% headwind from customer operations disrupted by conflict in the Middle East. Excluding that impact, Beck said underlying volume growth accelerated from the first quarter. Ecolab said its Food and Beverage business accelerated to 7% growth, while Institutional & Specialty grew 4% and Light Water improved. The company attributed growth in part to new business from its One Ecolab Growth initiative, which combines capabilities across businesses to expand cross-selling opportunities. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Miso Robotics stock: Is an IPO coming soon? Among its growth engines, Life Sciences grew 15%, driven by share gains in bioprocessing, pharmaceutical and personal-care markets, as well as improved purification performance. Beck said Life Sciences delivered a mid-20% operating-income margin in the second quarter, aided by strong sales and a spike in bioprocessing. He added that underlying margins should remain in the mid-20% range, although reported third-quarter margin is expected in the high teens as the company continues investing in capacity and capabilities. The Life Sciences business has grown from less than $100 million in 2017 to nearly $1 billion currently, according to Beck. He said Ecolab has expanded production capacity across North America, Europe and Asia, including the opening of a major plant in China. The company continues to target a roughly 30% operating-income margin for the business at scale, while emphasizing continued investment ahead of growth. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Ecolab Digital grew 27% in the quarter, reflecting adoption of connected software and operational tools including DishIQ, AquaIQ, KitchenIQ and CIP IQ. Beck said the digital business is approaching a $500 million annual revenue run rate and has a potential $3 billion revenue opportunity from connecting customer locations and applications and generating subscription revenue from those offerings. Pest Elimination grew 7%, supported by share gains and expansion of its Pest Intelligence platform. Ecolab said it has deployed nearly 800,000 connected devices and expects to exceed 1 million by year-end. Global High-Tech sales grew 29% as demand rose in microelectronics and data centers amid the buildout of artificial-intelligence infrastructure. Ecolab completed its acquisition of liquid-cooling provider CoolIT Systems on July 2. Beck said CoolIT’s year-to-date sales growth before the acquisition exceeded 100%. Ecolab’s Global High-Tech platform is approaching $1.5 billion in annualized sales, consisting of roughly $500 million each from its legacy high-tech operations, CoolIT and Ovivo, Beck said. The company expects the combined Global High-Tech platform to grow more than 25% annually and reach $4 billion in sales by 2030, with a 25% operating-income margin. Those targets were raised from previous expectations for more than 20% growth and a 20% margin. On a pro forma basis including Ovivo and CoolIT, Ecolab said company sales growth would have been about 7% in the second quarter, with the acquired businesses adding roughly two percentage points of growth. Beck said Ecolab plans to introduce an integrated cooling platform at the Supercomputing conference that combines CoolIT’s liquid-cooling technology with Ecolab’s 3D TRASAR digital capabilities. The company will hold an investor day at the Supercomputing conference in Chicago on Nov. 17, when it expects to provide further detail on Global High-Tech’s outlook. Beck said Ecolab is still early in integrating CoolIT and continues to use a 30% long-term growth assumption for the acquired business. Ecolab expects organic sales growth of 6% to 7% in the second half, with adjusted operating-income margin of 19%. The company said that trajectory keeps it on track to achieve a 20% operating-income margin next year. Chief Financial Officer Scott Kirkland said Ecolab expects commodity costs to remain at high-single-digit levels for the balance of 2026. He also noted that Ovivo reduced reported gross margin by about 60 basis points in the second quarter, while Ecolab’s organic gross margin excluding Ovivo was stable. The company expects capital expenditures to remain around 7% of sales over the next several years as it invests ahead of growth in Global High-Tech and Life Sciences, Kirkland said. He added that Ecolab remains focused on increasing organic return on invested capital by at least 100 basis points annually and expects to return to pre-CoolIT acquisition organic ROIC levels by 2028. Ecolab raised its full-year 2026 adjusted EPS outlook to a range of $8.05 to $8.25, representing growth of 7% to 10% from the prior year. The forecast includes the near-term effects of non-cash amortization and financing costs associated with the CoolIT acquisition. Beyond 2026, Beck said the company continues to expect adjusted EPS growth, including CoolIT, to accelerate to a 12% to 15% trajectory. Ecolab, Inc is a global provider of water, hygiene and infection prevention solutions and services. The company develops and supplies cleaning and sanitizing chemicals, dispensing equipment, water-treatment systems, pest elimination services and related technologies designed to help businesses maintain clean, safe and efficient operations. Its offerings span both products and onsite services, often paired with technical support and training. Ecolab serves a broad range of end markets including hospitality and foodservice, food and beverage processing, healthcare, manufacturing and industrial operations, and energy and utilities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ecolab Q2 Earnings Call Highlights" was originally published by MarketBeat. 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