Ingersoll Rand Inc. (IR) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Feb 11, 2027 — estimated from last year’s reporting date.

Consensus is $0.99 EPS for Dec 2026 across 4 estimates, ranging $0.97 to $1.01.

IR Sep 2026

Reported Oct 29, 2026 · after the close

: 20.93%
: +0.05%

: $0.86
: $1.04
: —
: $2.06B

Reported results

: $2.06B; from $1.96B
: 44.76%; from 43.74%
: $782.50M; from $375.50M
: 37.90%; from 19.21%
: $669.90M; from $244.10M
: $1.73; from $0.61

Highlights

Orders: Orders rose 21% to $2.345 billion, up 18% organically; book-to-bill was 1.14x, with growth in both short-to-medium and long-cycle activity.
Revenue: Revenue increased 5.6% to $2.065 billion, or 3.9% organically, and was up about 0.7% from Q2’s $2.05 billion.
Adjusted earnings: Adjusted diluted EPS was $1.07, up 24% year over year; excluding $32 million of IEEPA tariff refunds, it was $1.01, up 17%.
Reported earnings: GAAP net income attributable to Ingersoll Rand was $670 million and diluted EPS was $1.73, including a $380.1 million net ILC Dover-related recovery in operating income.
Data center win: IT&S booked an approximately $195 million engineered-to-order project for one mission-critical data center site; revenue is expected mainly in 2027, with initial margins below the company average.
Segment margins: Excluding tariff refunds, IT&S adjusted EBITDA margin was 27.8%, down 120 basis points year over year but up 100 basis points sequentially; P&ST margin rose 180 basis points year over year to 32.6%.
Cash generation: Free cash flow was $623 million, including $162.5 million of ILC Dover recoveries collected in the quarter; excluding those collections, it was about $461 million, up roughly 40%.
Guidance and capital: The company raised 2026 revenue growth guidance to 5.5%–7.0% and adjusted EPS guidance, excluding Q3 tariff refunds, to $3.58–$3.70; it also authorized an additional $2 billion for share repurchases.

Analysis

Ingersoll Rand’s Q3 was defined by a sharp acceleration in orders, solid organic revenue growth and a large one-time recovery that makes GAAP earnings a poor read-through to underlying performance. Revenue of $2.065 billion rose 5.6% year over year and was slightly above Q2’s $2.05 billion. Adjusted diluted EPS was $1.07 versus the stated consensus of $0.86, and increased 24% year over year; excluding $32 million of tariff refunds, adjusted EPS was $1.01, up 17%. GAAP diluted EPS was $1.73, but included a $380.1 million net recovery tied to the ILC Dover transaction. Adjusted EBITDA was $584 million, up 7%, while the $552 million excluding tariff refunds grew only 1%; its 26.7% margin was down year over year but improved sequentially.

The clearest operating signal was orders growth: $2.345 billion, up 21% (18% organic), and a 1.14x book-to-bill. A roughly $195 million data-center order added to the long-cycle backlog, with most revenue expected in 2027 and initial margins below portfolio levels. P&ST also delivered margin expansion, while IT&S remained pressured by inflation and China pricing. Management raised full-year revenue and adjusted EPS guidance, held adjusted EBITDA guidance at $2.13–$2.19 billion, and expects to finish in its bottom half. Cash flow benefited from ILC Dover collections; underlying free cash flow excluding Q3 collections was still about $461 million.

Orders and data centers

Demand: Orders were $2.345 billion, up 20.7% reported and 18.2% organically. Book-to-bill reached 1.14x, with management citing improvement in short-to-medium-cycle activity and a meaningful pickup in long-cycle bookings.
Data-center project: IT&S won an approximately $195 million engineered-to-order project for integrated backup power and filtration at one mission-critical data-center site. The order is accretive to EBITDA dollars and adjusted EPS from the start, but ramp investments mean initial margins are in the low-20% range; management expects margins to move toward portfolio levels as volume scales.
Conversion and pipeline: Most of the project’s revenue is expected to be recognized over the course of 2027. Management described a substantial, growing data-center funnel and said IT&S organic orders excluding this award still grew high single digits; long-cycle organic orders were up more than 20%.

Earnings and recoveries

Underlying earnings: Adjusted EBITDA was $584.4 million, up from $544.6 million a year ago, and adjusted diluted EPS was $1.07 versus $0.86. The quarter included $32.3 million of IEEPA tariff refunds; excluding them, adjusted EBITDA was $552 million, up 1%, and adjusted EPS was $1.01, up 17%.
GAAP distortion: Operating income rose to $782.5 million from $375.5 million a year ago, and net income attributable to Ingersoll Rand increased to $669.9 million from $244.1 million. The major driver was a $380.1 million net ILC Dover-related recovery recognized in other operating income, not a comparable step-change in recurring operations.
Tax benefit: The adjusted tax rate was about 17% for the quarter. Management cited newly usable foreign tax credits following legal-entity restructuring and said the changes should provide a durable benefit to tax rates and cash repatriation.

Segment performance

IT&S: Orders of $1.898 billion rose 25% reported and 22% organically; revenue of $1.620 billion grew 5% reported and 4% organically. Adjusted EBITDA excluding tariff refunds was $451 million, up 1%, with a 27.8% margin, down 120 basis points year over year as inflation and China pricing weighed. Margin improved 100 basis points sequentially.
P&ST: Orders of $448 million rose 7% reported and 4% organically; revenue of $445 million grew 7% and 6%, respectively. Life Sciences orders and revenue were up low double digits. Adjusted EBITDA excluding refunds was $145 million, up 14%, and margin expanded 180 basis points year over year to 32.6%, including a 110-basis-point sequential improvement.
Portfolio demand: Management reported positive organic revenue growth across IT&S regions for a second consecutive quarter. Food and beverage, biopharma, power generation, wastewater and nuclear-related activity were cited as areas of momentum; electric vehicles and renewable natural gas remained weak or flat.

Cash and capital

Free cash flow: Q3 operating cash flow was $647.8 million and capital expenditures were $24.5 million, producing $623.3 million of free cash flow versus $325.5 million a year earlier. Q3 free cash flow included $162.5 million of ILC Dover recovery collections; excluding those, it was approximately $461 million, up roughly 40% year over year.
ILC Dover settlements: Gross recoveries reached approximately $425.1 million, inclusive of the $187.5 million announced in July. The company collected $25 million in Q2 and $162.5 million in Q3 and expects to collect the remainder in Q4. Recoveries are excluded from adjusted earnings.
Balance sheet and returns: Liquidity was $3.9 billion, including $1.3 billion of cash and $2.6 billion of undrawn credit capacity. Net debt to adjusted EBITDA leverage was 1.6x, down from 1.7x in Q2 and 1.8x a year earlier. The company spent $90 million on M&A and returned $358 million to shareholders in Q3; the board added $2 billion to repurchase authorization, on top of $313 million remaining.

Updated 2026 outlook

Revenue: Full-year growth guidance increased to 5.5%–7.0%, including approximately 1% from currency and 2.5% from M&A, with organic growth now expected at 2%–3.5%. Management described Q4 organic growth of 2% or more as its current expectation.
Earnings: Adjusted EBITDA guidance, excluding Q3 IEEPA refunds, remains $2.13–$2.19 billion; management expects the result in the bottom half of the range amid inflation and China pricing pressure. Adjusted EPS guidance, excluding the Q3 refunds, rose to $3.58–$3.70, with a roughly 20% adjusted tax rate and approximately 390.5 million shares assumed.
Cash conversion: The company expects free cash flow conversion above 100% of adjusted net income including ILC Dover recoveries; excluding those recoveries, expected conversion remains about 95%. Capital expenditures are forecast at approximately 2% of sales.

Ingersoll Rand Inc.

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