Ingersoll rand inc（IR.US AI Earnings Summary）
IR AI Earnings Summary (In-Depth)
2026 Q3
Core Highlights
- Stock Price Reaction: INGERSOLL RAND INC reported strong Q3 results after the bell on October 29, 2026. Driven by an 18% YoY increase in orders and management's upward revision of full-year revenue and EPS guidance, the stock price surged during intraday trading on October 30 (the regular closing price on October 29 before the report was $80.01).
- Market Expectations: No consensus data available for comparison.
- Performance vs. Previous Guidance: Organic revenue growth reached 4%, exceeding the upper end of the previous guidance of approximately 1%–3%. Adjusted EPS was $1.07, roughly 69.0% below the lower end of the previous full-year guidance of $3.45; Adjusted EBITDA was $584M, approximately 72.6% below the previous full-year guidance floor of $2.13B (primarily because the previous guidance was for the full year, while this figure represents a single quarter).
- In a Nutshell: Organic order growth accelerated to 18% this quarter with the first-ever win of a $195M large-scale data center order; the market responded with a significant intraday stock price surge on October 30.
Quarterly Highlights
Acceleration in organic order growth and a seasonal high book-to-bill ratio signal a comprehensive recovery in demand momentum.
Organic order growth sharply accelerated to 18%, with a book-to-bill ratio of 1.14x: Total orders for the quarter reached $2.345B, up 21% YoY, with 18% organic growth, significantly higher than the 2% organic growth in the previous quarter (2026 Q2). The book-to-bill ratio reached 1.14x, which CFO Vik Kini noted is significantly higher than the typical Q3 seasonality, as both short/medium-term and long-term orders accelerated.
Secured a $195M data center order, formally entering a new end market: The Industrial Technologies and Services (ITS) segment landed a large custom order of approximately $195M to provide integrated backup power and filtration systems for a single data center site. CEO Vicente Reynal noted that while the company had no presence in this end market a year ago, it has now built a substantial opportunity funnel and established partnerships with several hyperscalers and colocation providers.
Organic revenue growth of 4% exceeded the high end of previous full-year expectations: Total revenue for the quarter was $2.065B, up 6% YoY, with 4% organic growth, exceeding the 3% upper limit of the full-year organic growth guidance given in the last earnings call. Both ITS and the Precision and Science Technologies (PST) segments contributed positive organic growth, and all regions delivered positive growth for the second consecutive quarter.
PST segment Adjusted EBITDA margin reached 32.6%, with incremental margins exceeding 40% for five consecutive quarters: Excluding the IEEPA tariff refund, PST's Adjusted EBITDA this quarter was $145.1M with a 32.6% margin, up 180 bps YoY and 110 bps QoQ. Life Science Technologies saw low double-digit organic growth in both orders and revenue, while the short-to-medium-term core pump business in Precision Technologies also saw low single-digit organic growth.
Adjusted EPS (excluding tariff refund) increased 17% YoY, with quarterly margins improving 130 bps QoQ: Excluding the IEEPA tariff refund, Adjusted EPS for the quarter was $1.01, up 17% from $0.86 in the same period last year. Adjusted EBITDA margin (excluding refund) was 26.7%, recovering 130 bps from the previous quarter, consistent with the trajectory signaled in the last earnings call.
Free Cash Flow reached $6.233B; underlying operating cash flow (excluding ILC Dover recovery) grew approximately 40% YoY: Q3 Free Cash Flow was $6.233B, including $1.625B in recoveries related to the ILC Dover transaction; excluding this, underlying free cash flow was approximately $4.61B, up about 40% YoY. The leverage ratio decreased from 1.8x a year ago to 1.6x, with liquidity reaching $3.9B.
Board authorized a $2B increase in stock buyback capacity; $3.5B repurchased this quarter: The Board approved an additional $2B buyback authorization on top of the remaining $313M. A total of $3.58B was returned to shareholders this quarter, including $3.5B in stock repurchases and $80M in dividends, demonstrating capital allocation flexibility.
Total ILC Dover insurance claim recoveries reached $425.1M, exceeding initial expectations: Following the initial $187.5M recovery announced last quarter, further settlements were reached this quarter, bringing cumulative recoveries to approximately $425.1M. $162.5M was collected this quarter, with the balance expected in Q4; these funds are excluded from adjusted earnings per consistent company practice.
Completed acquisition of IVEK Corporation; eight deals closed or signed year-to-date: This quarter, the company acquired IVEK Corporation, a manufacturer of precision fluid metering and dispensing systems with annual revenue of approximately $40M, which was integrated into the PST segment's life sciences business. The acquisition multiple was in the low double digits, consistent with the company's disciplined valuation standards. There are currently seven other deals at the Letter of Intent (LOI) stage, with an opportunity funnel of over 200 companies.