Industrial manufacturing company Ingersoll Rand (NYSE: IR) reported Q2 CY2026 results topping the market’s revenue expectations, with sales up 8.5% year on year to $2.05 billion. Its non-GAAP profit of $0.86 per share was 4.1% above analysts’ consensus estimates.
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Ingersoll Rand (IR) Q2 CY2026 Highlights:
- Revenue: $2.05 billion vs analyst estimates of $1.96 billion (8.5% year-on-year growth, 4.6% beat)
- Adjusted EPS: $0.86 vs analyst estimates of $0.83 (4.1% beat)
- Adjusted EBITDA: $519.9 million vs analyst estimates of $516.2 million (25.4% margin, 0.7% beat)
- 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: 18.6%, up from 4% in the same quarter last year
- Free Cash Flow Margin: 15.8%, up from 11.1% in the same quarter last year
- Market Capitalization: $33.11 billion
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
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Ingersoll Rand’s 8.6% annualized revenue growth over the last five years was decent. 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 6.2% 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. 
This quarter, Ingersoll Rand reported year-on-year revenue growth of 8.5%, and its $2.05 billion of revenue exceeded Wall Street’s estimates by 4.6%.
Looking ahead, sell-side analysts expect revenue to grow 1.9% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will see some demand headwinds.
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Operating Margin
Ingersoll Rand has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 15.7%. This result isn’t surprising as its high gross margin gives it a favorable starting point.
Analyzing the trend in its profitability, Ingersoll Rand’s operating margin rose by 6.1 percentage points over the last five years, as its sales growth gave it immense operating leverage.
This quarter, Ingersoll Rand generated an operating margin profit margin of 18.6%, up 14.5 percentage points year on year. The increase was solid, and because its gross margin actually decreased, we can assume it was more efficient because its operating expenses like marketing, R&D, and administrative overhead grew slower than its revenue.
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 13.4% compounded annual growth rate over the last five years, higher than its 8.6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into Ingersoll Rand’s earnings quality to better understand the drivers of its performance. As we mentioned earlier, Ingersoll Rand’s operating margin expanded by 6.1 percentage points over the last five years. On top of that, its share count shrank by 8.2%. These 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 3.2% was lower than its five-year trend. We hope its growth can accelerate in the future.
In Q2, Ingersoll Rand reported adjusted EPS of $0.86, up from $0.80 in the same quarter last year. This print beat analysts’ estimates by 4.1%. Over the next 12 months, Wall Street expects Ingersoll Rand’s full-year EPS to grow 4.7% from $3.45 to $3.61.
Key Takeaways from Ingersoll Rand’s Q2 Results
We were impressed by how significantly Ingersoll Rand blew past analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. Investors were likely hoping for more, and shares traded down 4.2% to $80.76 immediately following the results.
So do we think Ingersoll Rand is an attractive buy at the current price? 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).
