The adjusted EPS beat and raised adjusted guidance are positive, but the GAAP EPS decline and cash flow drop are significant negatives. Watch for SPX FLOW integration progress and synergy realization in coming quarters. The stock may trade on the adjusted numbers given the acquisition distortion, but the GAAP weakness and cash burn warrant caution.
Price Chart
Executive Summary
ITT reported Q1 2026 GAAP EPS of $0.89 (down 33.1% YoY) and adjusted EPS of $1.98 (up 25.3% YoY), with total revenue up 32.7% to $1.21B (11% organic growth) driven by the SPX FLOW acquisition and broad segment strength. The company initiated full-year 2026 adjusted EPS guidance of $7.70-$8.00 (7-11% growth at midpoint) and organic revenue growth of 4-6%, but GAAP EPS guidance of $4.15-$4.45 reflects a 30% decline due to acquisition-related impacts. The stock will likely move on the strong adjusted EPS beat and raised adjusted guidance, offset by the GAAP EPS decline and significant cash flow deterioration.
Key Financial Metrics
Key Facts
- Q1 2026 GAAP EPS $0.89 vs $1.33 YoY (-33.1%), adjusted EPS $1.98 vs $1.58 YoY (+25.3%)
- Total revenue $1.21B (+32.7% reported, +10.9% organic YoY)
- SPX FLOW acquisition contributed 17 points of revenue growth
- Adjusted operating margin expanded 130 bps to 20.3%
- Operating cash flow fell 64.8% to $39.9M, free cash flow fell 82% to $13.8M due to $71M acquisition-related payments
- Full-year 2026 guidance: GAAP EPS $4.15-$4.45, adjusted EPS $7.70-$8.00 (7-11% growth)
- Organic revenue growth guided 4-6%, total revenue growth 36-38%
- Free cash flow guided $540M-$580M (10-11% margin)
- Quarterly dividend maintained at $0.386/share
- All three segments reported organic revenue growth: FT +12.2%, MT +5.3%, CCT +17.5%
Financial Impact
Adjusted EPS of $1.98 beat the $1.74 consensus by 13.8%, while GAAP EPS of $0.89 missed the Street convention of $1.77 by 49.7%. Revenue of $1.21B beat $1.11B consensus by 9.2%.
Risk Factors
- SPX FLOW integration risk — $3.5B cash outflow in Q1, debt increased to $3.85B
- GAAP EPS down 33% YoY due to acquisition-related costs and higher interest expense
- Operating cash flow down 65%, free cash flow down 82% in Q1
- Full-year GAAP EPS guidance of $4.15-$4.45 implies 30% decline from prior year
- Higher share count (87.8M diluted vs 81.7M) from acquisition-related stock issuance
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000216228-26-000034 |
| Document: itt-20260506.htm | 0000216228-26-000034 |
| Document: 0000216228-26-000034-index-headers.html | 0000216228-26-000034 |
| Document: 0000216228-26-000034-index.html | 0000216228-26-000034 |
| Document: 0000216228-26-000034.txt | 0000216228-26-000034 |
| 8-K Data (Synthetic) | 0000216228-26-000034 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 1, 2026 4w ago | Insider Buy | $194.26 $201.82 | ▲ +3.89% | ▲ +3.78% | $205.93 (+6.00%) |
Aug 6, 2026 8w ago | 8-K | $214.41 $203.48 | ▼ −5.10% | ▼ −5.70% | $205.93 (−3.96%) |
Jun 29, 2026 13w ago | 8-K | $197.76 $197.80 | ▲ +0.02% | ▲ +1.05% | $205.93 (+4.13%) |
May 7, 2026 21w ago | Insider Cluster | $207.79 $194.07 | ▼ −6.60% | ▼ −9.74% | $205.93 (−0.90%) |
May 6, 2026 21w ago | 8-K | $216.63 $194.07 | ▼ −10.41% | ▼ −13.20% | $205.93 (−4.94%) |
US Market Status
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