Applied Industrial Q3 sales growth beat estimates; lifts FY outlook

Applied Industrial Technologies

28/04/2026 11:41

Overview

U.S. industrial distributor's fiscal Q3 sales rose 7.3%, beating analyst expectations

Net income for fiscal Q3 was a slight miss, while EBITDA slightly beat analyst estimates

Company announced new 3.0 mln share repurchase authorization

Outlook

Applied Industrial raises FY26 EPS guidance to $10.64-$10.75 from $10.45-$10.75

Company now sees FY26 total sales growth of 7.2%-7.7%, up from 5.5%-7.0%

Company says FY26 outlook incorporates macro uncertainty from geopolitical events and trade policy

Result Drivers

ENGINEERED SOLUTIONS MOMENTUM - Growth in Engineered Solutions segment driven by positive order trends, improving demand across legacy and emerging industry verticals, and company’s engineering expertise, per CEO Neil Schrimsher

SERVICE CENTER DEMAND - Service Center segment demand benefited from sales initiatives and increased technical MRO requirements amid a more positive U.S. industrial backdrop, per CEO

FAVORABLE DEMAND BACKDROP - North American operations saw firming break-fix activity and gradually improving customer capital spending, according to management

Company press release: ID:nBw9lwkr8a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$1.25 bln
$1.23 bln (7 Analysts)
Q3 EPS
$2.65
Q3 Net Income
Slight Miss*
$99.77 mln
$100.66 mln (6 Analysts)
Q3 EBITDA
Slight Beat*
$153.90 mln
$152.40 mln (5 Analysts)
Q3 Operating Income
Beat
$137.93 mln
$134.42 mln (6 Analysts)
Q3 Pretax Profit
Beat
$135.13 mln
$132.52 mln (5 Analysts)
Q3 Basic EPS
$2.68
Q3 Gross Profit
$380.80 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for Applied Industrial Technologies Inc is $300.00, about 0.6% above its April 27 closing price of $298.10

The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 23 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)