AI Takeaway
APD delivered a strong Q2 FY2026 with revenue rising 8.8% YoY to $3.17B and a dramatic swing to profitability, posting net income of $710.4M versus a loss of $1.73B in the prior-year period.
Revenue
$3.17B
++8.76% YoY
EPS (Basic)
$3.19
++141.06% YoY
Operating Income
$752.7M
++132.33% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
APD's revenue increased 8.8% YoY to $3.17B in Q2 FY2026, up from $2.92B in Q2 FY2025, reflecting stronger demand across its industrial gas segments and improved pricing dynamics.
Source: Source: 10-Q Income Statement
Operating income swung to $752.7M from a loss of $2.33B in the prior-year quarter, representing a 132.3% YoY improvement, driven by the absence of large impairment or restructuring charges that weighed on the prior period.
Source: Source: 10-Q Income Statement
Cost of revenue rose 6.4% YoY to $2.18B, a slower pace than revenue growth of 8.8%, indicating modest gross margin improvement as APD benefited from operating leverage in its asset-heavy business model.
Source: Source: 10-Q Income Statement
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Upgrade to unlockAPD's debt-to-equity ratio stands at 1.50, reflecting significant financial leverage on its $41.6B asset base. The company's large-scale capital projects in hydrogen and clean energy require sustained debt financing, which could pressure the balance sheet if project returns disappoint or interest rates remain elevated.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $3.20 versus the $3.10 analyst consensus — a +3.4% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.17B | $2.92B | +8.76% |
Cost of Revenue | $2.18B | $2.05B | +6.35% |
Operating Income | $752.7M | $-2.33B | +132.33% |
Net Income | $710.4M | $-1.73B | +141.05% |
EPS (Basic) | $3.19 | $-7.77 | +141.06% |
EPS (Diluted) | $3.19 | $-7.77 | +141.06% |
R&D Expense | $21.6M | $22.9M | -5.68% |
SG&A Expense | $227.2M | $222M | +2.34% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $41.64B | $38.87B | +7.13% |
Current Assets | $5.01B | $5.19B | -3.37% |
Total Liabilities | $23.49B | $22.09B | +6.34% |
Current Liabilities | $3.51B | $5.21B | -32.57% |
Stockholders' Equity | $15.65B | $14.7B | +6.44% |
Cash & Equivalents | $951M | $1.49B | -36.23% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $2B | $1.14B | +75.86% |
Investing Cash FlowYTD | $-2.32B | $-4.42B | +47.53% |
Financing Cash FlowYTD | $-591.1M | $1.83B | -132.39% |
D&AYTD | $745.7M | $750.4M | -0.63% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 23.7% | -79.8% | +103.56% |
Net Margin | 22.4% | — | — |
ROE | 4.5% | — | — |
ROA | 1.7% | — | — |
Current Ratio | $1.427 | — | — |
Debt to Equity | $1.501 | — | — |
Other companies in Industrial Gases
APD reported Q2 FY2026 EPS of $3.19 (basic and diluted) and net income of $710.4M, a dramatic improvement from a loss of $1.73B in Q2 FY2025. The filing does not include analyst consensus estimates, so a formal beat/miss comparison is not available from this document alone.
APD's Q2 FY2026 results highlighted an 8.8% revenue increase to $3.17B and a sharp return to profitability with $710.4M in net income versus a prior-year loss. YTD operating cash flow surged 75.9% to $2.0B, while capital spending moderated, suggesting improving cash generation dynamics.
APD's revenue grew 8.8% YoY to $3.17B in Q2 FY2026, up from $2.92B in Q2 FY2025, driven by stronger industrial gas demand and improved pricing. Cost of revenue grew at a slower 6.4% pace, resulting in gross profit expansion.
Based on the financial data, key risks include APD's high debt-to-equity ratio of 1.50 reflecting significant leverage, execution risk on large capital-intensive hydrogen and clean energy projects, and a 36.2% YoY decline in cash to $951M that reduces liquidity headroom. These risks are inherent to APD's growth strategy of building large-scale clean energy infrastructure.
APD's financial health appears solid, with a current ratio of 1.43 indicating adequate short-term liquidity, strong YTD operating cash flow of $2.0B, and stockholders' equity of $15.6B. However, the debt-to-equity ratio of 1.50 and negative YTD free cash flow of approximately -$314M reflect the capital-intensive nature of its ongoing investment program.