10-Q · May 7, 2026
Ecolab's Q1 2026 results show strong revenue growth and an 8% increase in diluted EPS compared to Q1 2025. The company experienced notable performance across its segments with Global Water and Global Life Sciences…
Earnings analysis · 10-Q
ECL earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Ecolab delivered solid third-quarter growth, with revenue of $4.695 billion and diluted EPS of $2.18, both above the prior quarter and prior-year period. Free cash flow was $530 million, matching the prior-year quarter.…
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Ecolab delivered solid third-quarter growth, with revenue of $4.695 billion and diluted EPS of $2.18, both above the prior quarter and prior-year period. Free cash flow was $530 million, matching the prior-year quarter. However, the supplied 10-Q excerpt does not provide GAAP margin, balance-sheet, cash-flow statement, or segment detail, while acquisition-related amortization and financing costs remain a material earnings headwind. Overall sentiment is neutral because operating momentum is positive but the filing provides limited incremental outlook and highlights ongoing ERP and integration execution requirements.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.18
What stood out
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Revenue accelerated sequentially and year over year
Third-quarter revenue was $4.695 billion, up from $4.42 billion in 2026 Q2 and $4.17 billion in 2025 Q3, representing sequential growth of approximately 6.2% and year-over-year growth of approximately 12.6%.
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EPS improved versus both comparison periods
Diluted EPS was $2.18, compared with $1.90 in 2026 Q2 and $2.05 in 2025 Q3, increasing $0.28 sequentially and $0.13 year over year.
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Free cash flow remained strong
Free cash flow was $530 million in the quarter, versus $489 million in 2026 Q2 and $530 million in 2025 Q3, indicating sequential improvement and year-over-year stability.
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Repurchase authorization remained unused
As of September 30, 2026, 3,454,001 shares remained available under the repurchase authorization, and no shares were repurchased during July, August, or September 2026.
What to watch
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Multi-year ERP implementation risk
The company is continuing ERP upgrades in phases over the next several years. The filing states that the upgrades will affect processes constituting internal control over financial reporting and will require effectiveness testing, despite management concluding controls were effective as of September 30, 2026.
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CoolIT costs weigh on earnings
The prior outlook incorporated an approximate 6-percentage-point headwind from CoolIT acquisition-related amortization and financing costs, creating a material earnings burden even as FY2026 adjusted EPS guidance was narrowed to $8.10-$8.20.
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Integration and control execution risk
The filing states that no material changes affected internal control over financial reporting during July 1 through September 30, 2026, but continued ERP implementation introduces execution and control-testing requirements over the next several years.
Management's outlook
The supplied 10-Q excerpt does not include quantitative revenue or EPS guidance. Prior company outlook disclosed in the October 27, 2026 earnings release was FY2026 adjusted EPS of $8.10-$8.20 and Q4 adjusted EPS of $2.13-$2.23, but that outlook is not repeated in the provided 10-Q text.
Earlier filings 4
10-K · February 23, 2026
Ecolab presents a scale business with $16 billion in annual sales, 48,000 employees and operations in more than 170 countries, organized into four reportable segments (Global Water; Global Institutional & Specialty;…
10-Q · October 30, 2025
Ecolab reported Q3 2025 net sales of $4,165.0 million, up 4% year-over-year (organic sales +3%), with reported gross margin expanding to 44.8% from 43.4% a year ago. Reported GAAP operating income and net income…
10-K · February 21, 2025
Ecolab positions itself as a global sustainability leader with annual sales of $15.7 billion, ~48,000 employees and operations in more than 170 countries, organized into four reportable segments (Global Industrial;…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.