10-Q · July 29, 2026
PPG posted Q2 revenue of $4.495 billion, up 7.2% year over year and 14.4% sequentially, but reported EPS declined 1.0% to $1.96 as material cost inflation and automotive-refinish volume weakness constrained earnings.…
Earnings analysis · 10-Q
PPG earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
PPG delivered Q3 revenue of $4.353 billion and adjusted EPS of $2.25, improving versus the prior-year quarter and exceeding consensus, while full-year adjusted EPS guidance was raised to $7.90-$8.10. The filing provides…
Read full summary
PPG delivered Q3 revenue of $4.353 billion and adjusted EPS of $2.25, improving versus the prior-year quarter and exceeding consensus, while full-year adjusted EPS guidance was raised to $7.90-$8.10. The filing provides limited current-quarter detail on margins, cash flow, working capital and segment revenue in the supplied extract, so those metrics cannot be quantified here. The principal negatives are increased foreign-exchange and non-U.S.-dollar debt exposure and potentially substantial legacy litigation, including a Di Gregório award ranging from approximately $350 million to more than $700 million depending on interest treatment.
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
- $2.25
What stood out
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Revenue and EPS improved year over year
Q3 revenue was $4.353 billion, up approximately 6.7% from $4.08 billion in Q3 2025 but down approximately 3.3% from $4.50 billion in Q2 2026. Adjusted EPS was $2.25 versus $2.00 in Q3 2025 and $1.95 in Q2 2026.
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Share repurchases resumed
PPG repurchased 1,399,927 shares during the quarter at an average price of $107.16, leaving 15,849,320 shares available under the repurchase program at September 30, 2026.
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Internal controls remained effective
The company reported effective disclosure controls and procedures as of September 30, 2026, and stated that there were no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, controls during the quarter.
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Cross-currency hedge assets increased
PPG maintained $375 million of U.S. dollar-to-euro cross-currency swaps as of September 30, 2026, with a net asset fair value of $22 million.
What to watch
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Foreign-exchange exposure increased
Foreign-currency forward-contract notional exposure increased to $3.4 billion at September 30, 2026 from $2.9 billion at December 31, 2025. The contracts moved from a $1 million net asset to a $64 million net liability, while the stated adverse-rate sensitivity was $457 million for the nine months ended September 30, 2026.
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Higher foreign-currency debt exposure
Non-U.S.-dollar borrowings increased to $4.4 billion from $4.1 billion at December 31, 2025. A specified adverse currency scenario would have produced unrealized translation losses of $484 million at September 30, 2026, versus $457 million at year-end 2025.
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Large legacy litigation exposure
The Di Gregório litigation could result in a judgment exceeding $700 million including prejudgment interest, fees and costs; Westlake has also indicated that the final award could be approximately $350 million under simple prejudgment interest. PPG expects a trial-court decision in the fourth quarter of 2026 or early 2027, although it believes the risk of loss is remote.
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Interest-rate sensitivity edged higher
Variable-rate debt sensitivity increased modestly: the specified rate scenario would increase annual interest expense by $4 million at September 30, 2026 versus $3 million at December 31, 2025. Interest-rate swaps converted $375 million of fixed-rate debt to variable-rate debt.
Management's outlook
Full-year 2026 adjusted EPS guidance was raised to $7.90-$8.10. Fourth-quarter organic sales are expected to grow at a low-single-digit percentage rate, and adjusted EBITDA margin is expected to be flat to up 100 basis points year over year.
Earlier filings 4
10-Q · April 29, 2026
PPG Industries reported strong first-quarter results for 2026, with net sales of approximately $3.93 billion, marking a 7% increase year-over-year and exceeding revenue estimates of $3.84 billion. Although diluted EPS…
10-Q · April 30, 2025
PPG reported quarterly net sales of $3,684 million (down $165 million vs. Q1 2024's $3,849 million) and diluted earnings per share attributable to PPG of $1.63 (down $0.07 vs. $1.70 in Q1 2024). Gross-profit dollars…
10-Q · October 17, 2024
PPG reported Q3 net sales of $4,575 million, down $69 million (‑1.5%) versus Q3 2023, but delivered margin expansion and higher earnings: diluted EPS was $2.00 (vs. $1.79) and net income attributable to PPG was $468…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.