Industrial manufacturing company Ingersoll Rand (NYSE: IR) reported Q3 2026 results exceeding the market’s revenue expectations, with revenue up 5.6% year on year to $2.06 billion. Its non-GAAP profit of $1.07 per share was 18.5% above analysts’ consensus estimates.
For more on Ingersoll Rand, read our full research report, available free.
Ingersoll Rand (IR) Q3 2026 highlights:
- Revenue $2.06 billion vs S&P analysts’ consensus estimates of $2.05 billion (5.6% year-on-year growth, 0.6% beat)
- Adjusted EPS $1.07 vs S&P analysts’ consensus estimates of $0.90 (18.5% beat)
- Adjusted EBITDA $584.4 million vs analysts’ consensus estimates of $549.8 million (28.3% margin, 6.3% beat)
- Adjusted EPS guidance Management raised its full-year adjusted EPS guidance to $3.64 at the midpoint, a 3.7% increase
- EBITDA guidance $2.16 billion at the midpoint for the full year, in line with analysts’ consensus estimates
- Operating margin 37.9%, up from 19.2% in the same quarter last year
- Free cash flow margin 30.2%, up from 16.6% in the same quarter last year
- Market capitalization $29.27 billion
"We delivered strong organic orders growth and revenue performance in the third quarter, reflecting an improved demand environment and continued execution by our teams," said Vicente Reynal, chairman and chief executive officer of Ingersoll Rand. "We saw healthy short-to-medium cycle and long cycle business activity across our geographies and end markets, and IRX continues to be a key differentiator with our teams remaining focused on controlling what we can control."
Revenue growth
A company’s long-term performance is an indicator of its overall quality. Even a bad business can perform well for one or two quarters, but a top-tier one grows for years. Ingersoll Rand’s revenue grew at a decent 9% compounded annual growth rate over the last five years. Its growth was slightly above the average industrials company and shows its offerings resonate with customers.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. 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. Decelerating revenue growth in the sector warrants caution, as it could signal changing consumer tastes aided by low switching costs. 
This quarter, Ingersoll Rand reported year-on-year revenue growth of 5.6%, and its $2.06 billion of revenue exceeded Wall Street’s consensus estimates by 0.6%.
Looking ahead, sell-side analysts expect revenue to grow 4.3% over the next 12 months, according to S&P, a slight deceleration versus the last two years. This projection is underwhelming and indicates its products and services will see some demand headwinds.
Operating margin
Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products and most importantly, keeping them relevant through research and development.
Ingersoll Rand has performed well over the last five years. It demonstrated high profitability for an industrials business, with an average operating margin of 17.2%. That result is unsurprising given its favorable gross margin baseline.
Looking at the trend in its profitability, Ingersoll Rand’s operating margin rose by 10.9 percentage points over the last five years, as its revenue growth provided operating leverage.
In Q3, Ingersoll Rand generated an operating margin of 37.9%, up 18.7 percentage points year on year. The increase was solid, and its operating margin rose more than its gross margin, indicating greater efficiency in expenses such as marketing, R&D and administrative overhead.
Earnings per share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Ingersoll Rand’s EPS grew at a 12.7% compounded annual growth rate over the last five years, higher than its 9% annualized revenue growth. This indicates the company became more profitable on a per-share basis as it expanded.
A closer look at Ingersoll Rand’s earnings helps explain the drivers of its performance. As mentioned earlier, Ingersoll Rand’s operating margin expanded by 10.9 percentage points over the last five years. Its share count also shrank by 7.3%. These are positive signs for shareholders because improving profitability and share buybacks boost EPS growth relative to revenue growth. 
As with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
Ingersoll Rand’s two-year annual EPS growth of 5.2% was lower than its five-year trend. A return to faster growth would be a positive development.
In Q3, Ingersoll Rand reported adjusted EPS of $1.07, up from $0.86 in the same quarter last year. This comfortably exceeded analysts’ consensus estimates, a positive result for shareholders. Over the next 12 months, Wall Street expects Ingersoll Rand’s full-year EPS to grow 2.7% from $3.66 to $3.76, according to S&P.
Key takeaways from Ingersoll Rand’s Q3 results
Ingersoll Rand’s EBITDA and EPS both topped Wall Street’s consensus estimates, giving the quarter some clear positives. It was a solid showing overall, and shares edged higher 1.7% to $81.39 immediately after the report.
Ingersoll Rand reported solid earnings, but one quarter doesn’t necessarily make the stock a buy. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation when deciding if the stock is a buy. Read the full research report here (it’s free).
