Flowserve (FLS) is down sharply as investors digest a mixed Q1 2026 update: earnings strength but a clear top-line disappointment and a lower sales outlook. The company posted Q1 reported sales of $1.068B, down 6.7% year over year, and below Street expectations near $1.18B. While adjusted EPS of $0.85 topped consensus by $0.03, the revenue miss and outlook reset are dominating the stock’s reaction. (files.quartr.com)

Flowserve updated its 2026 guidance by reducing organic sales growth to (1%) to +2% (from +1% to +3%), and total sales growth to +3% to +6% (from +5% to +7%). It reaffirmed full-year 2026 adjusted EPS guidance of $4.00 to $4.20, signaling confidence in margin execution even as demand timing and project flow appear less certain. (files.quartr.com)

Bookings were $1.15B in Q1, down 6.4% year over year, with $680M of aftermarket bookings and more than $110M of nuclear bookings. Profitability improved on an adjusted basis, with adjusted operating margin expanding to 15.1% from 12.8%, and adjusted EPS benefited from a $0.19 tailwind tied to recoverable IEEPA tariffs; that was partially offset by a $0.06 Latin America tax matter and a $0.06 headwind tied to ongoing Middle East conflict. (files.quartr.com)

Beyond the headline miss, the market is treating the lowered sales outlook as confirmation that project timing and regional disruption are impacting conversion of demand into near-term revenue. Separately, at least one major firm lowered its price target while keeping a neutral stance, flagging softer revenue and the trimmed sales guidance as pressure points even after the stock’s strong run over the prior year. (investing.com)