Ecolab Q4 EPS Beats Estimates; FY26 Sales Growth and EPS Guidance Raised
Ecolab delivered Q4 adjusted EPS of $2.08 and $4.196B revenue, topping estimates as organic sales grew 3% and operating margin expanded 140 basis points to 18.5%. The company closed the quarter with $646M cash, guided FY26 reported sales growth of 7%-9% (3%-4% organic) and projected adjusted EPS of $8.43-$8.63.
1. Strong Q4 Financial Performance
Ecolab achieved adjusted EPS of $2.08, surpassing consensus by $0.01, while revenue rose 5% year-over-year to $4.196 billion with 3% organic sales growth. Gross profit increased to $1.85 billion, lifting gross margin to 44.1% and driving a 140 basis point expansion in adjusted operating margin to 18.5%.
2. Segment Growth Drivers
Global Water and Global Institutional & Specialty each recorded 3% fixed-currency sales growth, and both Global Pest Elimination and Global Life Sciences delivered 7% reported and organic growth. Ecolab Digital sales surged 24% to $99 million, supported by strong demand for software and hardware subscriptions.
3. FY26 Outlook and Guidance
The company finished Q4 with $646 million in cash and forecast FY26 reported sales growth of 7%–9% (3%–4% organic) alongside adjusted EPS of $8.43–$8.63. Management expects operating margin expansion of 100–150 basis points and plans to achieve $325 million in productivity savings by 2027 under its One Ecolab initiative.