Pentair Gears Up to Report Q2 Earnings: What's in Store for the Stock?

The consensus estimate for PNR’s earnings has moved down 24.32% to $1.12 over the past 60 days. The estimate suggests a year-over-year decline of 19.4%. 

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Pentair’s Strong Earnings Surprise History

PNR’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 3.68%. This is depicted in the following chart.

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What the Zacks Model Unveils for PNR Stock

Our model does not conclusively predict an earnings beat for Pentair this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here, as you can see below.

Earnings ESP: Pentair has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: PNR currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped Pentair’s Q2 Performance

Last week, Pentair released preliminary second-quarter 2026 results and lowered its full-year guidance, citing weaker-than-expected performance in its Pool business.  This was attributed to a sharper-than-anticipated inventory correction by major channel partners, along with softer end-market demand amid elevated interest rates and persistent inflation. 

Second-quarter sales are now expected to be approximately $930 million, representing a 17% decline year over year in contrast to the prior outlook of 1% growth. 

The company estimates that Pool channel destocking reduced the segment's sales by approximately $170 million and operating income by about $105 million. In contrast, the Flow and Water Solutions segments are expected to have performed broadly in line with previous guidance.

The company expects the Water Solutions segment’s second-quarter 2026 sales to be down in low single digits, with flat organic sales growth. The Flow segment’s sales are expected to have been up in high single digits. The Hydra-Stop acquisition is expected to have contributed approximately $10 million of sales. 

The company expects adjusted operating income to be approximately $235 million, suggesting a 21% decline from the $297 million in the year-ago quarter. This reflects the impact of the inventory corrections, somewhat offset by the recoveries of tariffs collected under the International Emergency Economic Powers Act (IEEPA). Pentair’s previous guidance had factored in 5-6% year-over-year growth.

Adjusted earnings per share for the second quarter are now expected to be around $1.12, which reflects a year-over-year plunge of 19%, compared with the earlier guidance of $1.47-$1.50. The second-quarter results are expected to include approximately $35 million of IEEPA refunds. 

Pentair also stated that it had repurchased approximately 2 million shares for $150 million during the April to June 2026 period.

PNR Stock Price Performance

Pentair shares have declined 38.7% over the past year compared with the industry’s 10.5% decline.

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Stocks That Warrant a Look

Here are some companies with the right combination of elements to post an earnings beat in their upcoming releases.

Ingram Micro Holding Corporation INGM, set to release second-quarter 2026 results on July 30, has an Earnings ESP of +2.18% and a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for Ingram Micro Holding’s second-quarter 2026 earnings is pegged at 73 cents per share, suggesting a year-over-year rise of 19.7%. Ingram Micro Holdings Industries has a trailing four-quarter average surprise of 5.74%.

Everpure, Inc. P, expected to release second-quarter fiscal 2027 results next month, has an Earnings ESP of +2.27% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for Everpure’s earnings for the quarter is pegged at 59 cents per share, implying year-over-year growth of 37.2%. Everpure has a trailing four-quarter average surprise of 8.1%.

ESCO Technologies ESE is expected to release second-quarter 2026 results next week, has an Earnings ESP of +1.06% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for ESCO Technologies’ quarterly earnings is pegged at $2.12 per share, implying a year-over-year rise of 32.50%. ESCO Technologies has a trailing four-quarter average surprise of 12.4%.

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This article originally published on Zacks Investment Research (zacks.com).

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