10-Q · July 29, 2026
POOL delivered modest Q2 growth, with revenue up 2% to $1.823 billion and adjusted EPS up 4% to $5.38, but GAAP EPS remained flat at $5.17 as freight, mix pressure and $8.3 million of CEO-transition costs weighed on…
Earnings analysis · 10-Q
POOL earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
POOL delivered a solid Q3 revenue and EPS beat, with sales up 4% year over year to $1.505 billion and diluted EPS of $3.40. However, profitability weakened as gross margin declined 60 basis points to 29.0% and operating…
Read full summary
POOL delivered a solid Q3 revenue and EPS beat, with sales up 4% year over year to $1.505 billion and diluted EPS of $3.40. However, profitability weakened as gross margin declined 60 basis points to 29.0% and operating income fell 3%, reflecting freight, mix and higher operating expenses. Liquidity and operating cash flow improved, but debt rose to $1.167 billion and management continues to expect full-year margin pressure while maintaining 2026 EPS guidance of $10.66-$10.96.
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.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
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
- $3.4
- Segment
- Single reportable segment: net sales of $1,504.957 million in Q3 2026 versus $1,451.131 million in Q3 2025; operating income was $172.195 million versus $177.987 million.
What stood out
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Revenue beat supported by pricing and maintenance
Q3 net sales increased 4% year over year to $1,504.957 million from $1,451.131 million, exceeding the reported consensus estimate of $1,474.096 million by approximately 2.1%. Management attributed growth primarily to a 3% pricing benefit, stronger maintenance activity and building materials growth.
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EPS held flat and beat consensus
Diluted EPS was $3.40, matching the $3.40 reported in Q3 2025 and exceeding the $3.36 consensus estimate. The quarter benefited from a lower diluted share count of 35.923 million versus 37.223 million a year earlier.
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Maintenance-related product demand remained resilient
Equipment sales for maintenance, renovation and new construction increased 5% year over year and represented approximately 30% of Q3 net sales. Building materials sales increased 3% and represented approximately 11% of Q3 net sales.
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Operating cash flow improved materially
Nine-month operating cash flow increased 47% to $419.824 million from $285.743 million, primarily due to favorable working-capital changes, including a $264.883 million inventory-related cash benefit.
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Inventory levels were reduced
Inventory declined 3% year over year to $1,185.177 million from $1,223.809 million despite 4% sales growth. Inventory turns were 2.7 times versus 2.8 times a year earlier.
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Financing capacity and liquidity remain available
The company amended its receivables facility to extend maturity to August 25, 2028 and increase seasonal capacity to $400.0 million. At September 30, 2026, $507.8 million remained available under the Credit Facility and $286.0 million was outstanding under the Receivables Facility.
What to watch
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Freight and mix continue to pressure margins
Gross margin fell 60 basis points year over year to 29.0% from 29.6%, driven by higher inbound freight costs, customer mix and the absence of the prior-year benefit from mid-season price increases. Management projects full-year 2026 gross margin to be 30-50 basis points below the 2025 level of 29.7%.
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Operating leverage remains under pressure
Operating income declined 3% to $172.195 million from $177.987 million, while selling and administrative expenses rose 5% to $264.122 million from $251.196 million. Nine-month results included $8.262 million of CEO transition costs.
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Higher debt supports shareholder returns
Total debt increased $104.9 million year over year to $1,166.882 million, while nine-month financing cash outflows reached $369.518 million, including $198.046 million of share repurchases and $140.105 million of dividends.
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Receivables growth and collection metrics weakened
Total net receivables, including pledged receivables, increased 8% year over year, and trailing-four-quarter DSO rose to 28.0 days from 25.9 days. The allowance for doubtful accounts also increased to $10.3 million from $8.3 million.
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Seasonality drives sequential declines
Q3 results were seasonally weaker than Q2: revenue declined to $1,504.957 million from $1,822.938 million, operating income fell to $172.195 million from $267.679 million, and diluted EPS declined to $3.40 from $5.17.
Management's outlook
Management maintained 2026 diluted EPS guidance of $10.66-$10.96 and adjusted diluted EPS guidance of $10.87-$11.17. It expects full-year 2026 net sales growth of 3%-4%, including a 3% contribution from pricing, and projects gross margin 30-50 basis points below the 2025 margin of 29.7%.
Earlier filings 4
10-Q · April 28, 2026
POOL reported Q1 2026 net sales of $1,138,014,000, up 6% YoY, and diluted EPS of $1.45, beating consensus. Operating income rose 7% to $82.6 million and operating margin expanded to 7.3%. Management reconfirmed…
10-K · February 26, 2026
Pool Corporation positions itself as the world’s largest wholesale distributor of swimming pool supplies with 456 sales centers as of December 31, 2025 and a highly recurring revenue base (64% of 2025 sales from…
10-Q · October 29, 2025
Pool reported Q3 2025 net sales of $1,451,131,000, up $18,252,000 (+1.3%) versus Q3 2024, with diluted EPS of $3.40 (versus $3.27 a year ago). Gross margin expanded to roughly 29.6% and operating income was essentially…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.