ITT Q3 EPS $1.38, Adjusted $2.26; Guidance Raised

ITT Inc. reported third-quarter 2026 earnings per share of $1.38 and adjusted EPS of $2.26 on 4 November 2026, with revenue rising 44% to $1.44 billion. The industrial manufacturer, listed on the New York Stock Exchange under the ticker ITT, said adjusted EPS climbed 19.6% from $1.89 a year earlier while reported EPS fell 14.8% from $1.62, a gap the company attributed to costs tied to its SPX FLOW acquisition.

Context — why ITT's third-quarter print matters now

The quarter marks the first full reporting period in which SPX FLOW, acquired earlier in 2026, materially reshapes ITT's revenue base. The company said the acquisition contributed 35 points of the 44.2% reported revenue growth, leaving 7.6% organic growth — a distinction that separates genuine demand from balance-sheet expansion.

Against the prior year, ITT's reported operating margin narrowed 230 basis points to 15.7%, which the company linked to acquisition-related intangible amortization and costs. Adjusted operating margin moved the opposite way, rising 140 basis points to 21.0%. That divergence is the central tension in the print: reported profitability shrank while underlying profitability expanded.

The company framed the quarter as evidence its acquisition strategy is compounding value. Chief Executive Officer and President Luca Savi said teams "continue to win in the market" and that at SPX FLOW the company is "delivering high-single-digit growth and capturing cost synergies ahead of schedule." Those are the company's characterizations, not independently verified results.

ITT also tied the result to a broader industrial demand backdrop. Aerospace and defense connectors, pump projects, valves, energy and biopharma all contributed, according to the company. No macroeconomic indicator, interest rate level or peer benchmark was cited in the report to frame the quarter against market conditions.

The timing matters because ITT simultaneously raised full-year guidance across every key metric it tracks — organic revenue, total revenue, adjusted operating margin, EPS, adjusted EPS and free cash flow. Guidance increases issued alongside a reported-EPS decline are uncommon and put pressure on the company's non-GAAP definitions.

Data — what the numbers show

Revenue reached $1,440.6 million versus $999.1 million in the third quarter of 2025, a 44.2% increase. Organic growth was 7.6%.

Metric	Q3 2026	Q3 2025	Change
Revenue	$1,440.6M	$999.1M	+44.2%
Operating income	$226.8M	$179.8M	+26.1%
Operating margin	15.7%	18.0%	-230 bps
Adjusted operating income	$303.1M	$195.8M	+54.8%
Adjusted operating margin	21.0%	19.6%	+140 bps
EPS	$1.38	$1.62	-14.8%
Adjusted EPS	$2.26	$1.89	+19.6%
Operating cash flow	$312.5M	$174.0M	+79.6%
Free cash flow	$288.4M	$154.2M	+87.0%

Orders rose 58% to $1,562.6 million, of which 20% was organic. Acquisitions added $368.4 million to orders, meaning SPX FLOW and a smaller connector deal supplied roughly 37 points of the headline order growth.

Segment results split sharply. Flow Technologies revenue nearly doubled to $764.3 million, with organic growth of 6.0% and adjusted operating margin down 40 basis points to 13.7% on a reported basis. Motion Technologies grew revenue 2.3% to $363.7 million with operating margin up 100 basis points to 20.6%. Connect & Control Technologies grew revenue 21.1% to $313.9 million with organic growth of 18.6% and operating margin up 270 basis points to 20.5%.

On the balance sheet, goodwill rose to $3,845.5 million from $1,511.2 million at year-end 2025, and other intangible assets rose to $2,957.2 million from $432.6 million — the accounting footprint of the acquisition. Long-term debt climbed to $2,806.1 million from $521.5 million. Cash fell to $558.1 million from $1,742.9 million.

Analysis — what it means for markets and tickers

The reported-versus-adjusted gap is the number that should draw scrutiny. Intangible amortization reached $61.2 million in the quarter versus $11.1 million a year earlier, and interest expense rose to $45.0 million from $11.7 million. Those are real cash and accounting costs that adjusted EPS excludes, and they scale with the acquisition rather than fading quickly.

Diluted weighted-average shares rose to 89.8 million from 78.4 million, reflecting equity issued for SPX FLOW. The company said higher interest expense, share count and effective tax rate offset SPX FLOW's contribution to adjusted EPS.

The segment mix matters for sector exposure. Flow Technologies now carries the acquisition drag and the lowest adjusted margin, while Connect & Control Technologies delivered the strongest organic growth at 18.6% and the highest reported margin at 20.5%. Industrial peers in pumps, valves and defense connectors compete for the same project awards, so ITT's organic order growth of 20% is the cleanest read on demand.

The counter-argument is that organic growth of 7.6% in revenue is modest against a 44.2% headline, and Flow Technologies organic growth of 6.0% trails the group. Adjusted operating margin in that segment fell 40 basis points year-over-year, improving 100 basis points sequentially — a recovery the company has not yet shown on a full-year basis.

Positioning is split. Guidance raises typically attract momentum buyers, while the reported EPS decline and balance-sheet use give short sellers a visible accounting target. The company also repurchased $155.0 million of shares in the nine months, down from $500.9 million a year earlier, redirecting capital toward debt reduction.

Outlook — what to watch next

ITT guided full-year 2026 organic revenue growth to 7% to 9% and total revenue growth to 41% to 43%. Operating margin is expected between 13.3% and 14.1%, with adjusted operating margin of 20.2% to 21.0%. EPS is expected at $4.65 to $4.73, with adjusted EPS of $8.54 to $8.62, which the company said represents 19% to 20% growth.

Free cash flow is guided to $600 million to $620 million, a free cash flow margin of roughly 11% for the full year.

Management will host an investor conference call on Thursday, 5 November 2026 at 8:30 a.m. Eastern Time, accessible via webcast on the company's investor site. A replay begins two hours after the presentation concludes.

The board declared a quarterly dividend of $0.386 per share, payable Thursday, 31 December 2026 to shareholders of record as of Friday, 4 December 2026. The company also named Davide Barbon, currently head of Motion Technologies, to lead Connect & Control Technologies effective immediately, while keeping both as separate reportable segments.

Frequently Asked Questions

Why is ITT's reported EPS lower than adjusted EPS?

Reported EPS of $1.38 includes acquisition-related costs that adjusted EPS of $2.26 excludes. The largest items are intangible amortization of $61.2 million versus $11.1 million a year earlier, plus higher interest expense of $45.0 million and acquisition-related charges. ITT defines adjusted results to exclude restructuring, intangible amortization, certain acquisition and divestiture impacts and unusual items, so the two figures measure different things.

What does the SPX FLOW acquisition mean for ITT's revenue quality?

SPX FLOW contributed 35 of the 44.2% reported revenue growth points, leaving 7.6% organic. It also added $368.4 million of orders and drove goodwill to $3,845.5 million. Investors reading the headline growth rate should separate acquired revenue from demand the legacy business generated on its own, since acquisitions are excluded from organic figures for twelve months after closing.

How much free cash flow did ITT generate in the quarter?

Free cash flow rose 87% to $288.4 million from $154.2 million, while operating cash flow increased 79.6% to $312.5 million. For the full year, the company guides free cash flow of $600 million to $620 million, a margin near 11%. The company attributed the quarterly increase to operating performance and the SPX FLOW acquisition, partly offset by higher interest costs.

Bottom Line

ITT raised every full-year metric even as reported EPS fell 14.8%, leaving adjusted profitability carrying the entire growth story.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.