Industrial manufacturing company Ingersoll Rand (NYSE: IR) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 7.6% year on year to $1.85 billion. Its non-GAAP profit of $0.77 per share was 4% above analysts’ consensus estimates.
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Ingersoll Rand (IR) Q1 CY2026 Highlights:
- Revenue: $1.85 billion vs analyst estimates of $1.83 billion (7.6% year-on-year growth, 0.9% beat)
- Adjusted EPS: $0.77 vs analyst estimates of $0.74 (4% beat)
- Adjusted EBITDA: $469.1 million vs analyst estimates of $470.8 million (25.4% margin, in line)
- Management reiterated its full-year Adjusted EPS guidance of $3.51 at the midpoint
- EBITDA guidance for the full year is $2.16 billion at the midpoint, in line with analyst expectations
- Operating Margin: 15.7%, down from 17.6% in the same quarter last year
- Free Cash Flow Margin: 8.8%, down from 13% in the same quarter last year
- Organic Revenue was flat year on year (miss)
- Market Capitalization: $32.88 billion
“We began 2026 with solid momentum, delivering high single-digit Adjusted EPS1 growth and meeting our expectations for revenue and Adjusted EBITDA1,” said Vicente Reynal, chairman and chief executive officer of Ingersoll Rand.
Company Overview
Started with the invention of the steam drill, Ingersoll Rand (NYSE: IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Ingersoll Rand grew its sales at a decent 8.2% compounded annual growth rate. Its growth was slightly above the average industrials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Ingersoll Rand’s recent performance shows its demand has slowed as its annualized revenue growth of 6.1% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
We can dig further into the company’s sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Ingersoll Rand’s organic revenue averaged 1.4% year-on-year declines. Because this number is lower than its two-year revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results. 
This quarter, Ingersoll Rand reported year-on-year revenue growth of 7.6%, and its $1.85 billion of revenue exceeded Wall Street’s estimates by 0.9%.
Looking ahead, sell-side analysts expect revenue to grow 3.2% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and suggests its products and services will face some demand challenges.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
Ingersoll Rand has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 15.4%. This result isn’t surprising as its high gross margin gives it a favorable starting point.
Looking at the trend in its profitability, Ingersoll Rand’s operating margin rose by 3.3 percentage points over the last five years, as its sales growth gave it operating leverage.
In Q1, Ingersoll Rand generated an operating margin profit margin of 15.7%, down 1.9 percentage points year on year. Since Ingersoll Rand’s operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Ingersoll Rand’s EPS grew at 14.9% compounded annual growth rate over the last five years, higher than its 8.2% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
Diving into Ingersoll Rand’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Ingersoll Rand’s operating margin declined this quarter but expanded by 3.3 percentage points over the last five years. Its share count also shrank by 7.1%, and these factors together are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
For Ingersoll Rand, its two-year annual EPS growth of 4.7% was lower than its five-year trend. We hope its growth can accelerate in the future.
In Q1, Ingersoll Rand reported adjusted EPS of $0.77, up from $0.72 in the same quarter last year. This print beat analysts’ estimates by 4%. Over the next 12 months, Wall Street expects Ingersoll Rand’s full-year EPS of $3.39 to grow 4.9%.
Key Takeaways from Ingersoll Rand’s Q1 Results
It was good to see Ingersoll Rand narrowly top analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its adjusted operating income missed. Overall, this was a weaker quarter. The stock traded down 2.8% to $78.90 immediately after reporting.
Ingersoll Rand’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
