AI Takeaway
Dover Corporation delivered solid Q1 2026 revenue growth of 10.1% YoY to $2.05B, though margin compression and rising SG&A expenses tempered the bottom-line expansion to 3.3% net income growth.
Revenue
$2.05B
++10.05% YoY
EPS (Basic)
$1.77
++5.36% YoY
Gross Margin
38.9%
-1.09% YoY
Operating Income
$305.91M
++3.24% YoY
Filed · Source: SEC EDGAR 10-Q filing
Dover reported Q1 2026 revenue of $2.05B, up 10.1% YoY from $1.87B in Q1 2025, indicating robust demand across its diversified industrial segments. This growth outpaced net income expansion, suggesting revenue mix or cost dynamics at play.
Source: Source: 10-Q Income Statement, Q1 2026
Gross margin declined approximately 110 basis points YoY to 38.9% from 40.0%, while operating margin contracted roughly 100 basis points to 14.9% from 15.9%. The cost of revenue grew faster than revenue (12.0% vs. 10.1%), indicating input cost pressures or an unfavorable product/segment mix shift.
Source: Source: 10-Q Income Statement & Key Ratios, Q1 2026
SG&A expenses rose 9.6% YoY to $492.2M, nearly matching the pace of revenue growth and contributing to operating margin pressure. This suggests ongoing investment in sales infrastructure or administrative costs that have not yet been leveraged against the higher revenue base.
Source: Source: 10-Q Income Statement, Q1 2026
2 more insights available
Upgrade to unlockCost of revenue grew 12.0% YoY, outpacing revenue growth of 10.1%, compressing gross margin by approximately 110 basis points to 38.9%. Sustained input cost inflation or unfavorable product mix could further erode profitability if Dover is unable to pass through price increases.
Source: Source: 10-Q Income Statement & Key Ratios, Q1 2026
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.28 versus the $2.29 analyst consensus — a -0.2% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.05B | $1.87B | +10.05% |
Cost of Revenue | $1.26B | $1.12B | +12.04% |
Gross Profit | $798.13M | $745.5M | +7.06% |
Operating Income | $305.91M | $296.31M | +3.24% |
Net Income | $238.43M | $230.82M | +3.30% |
EPS (Basic) | $1.77 | $1.68 | +5.36% |
EPS (Diluted) | $1.75 | $1.67 | +4.79% |
SG&A Expense | $492.23M | $449.19M | +9.58% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $13.51B | $12.65B | +6.78% |
Current Assets | $4.68B | $4.55B | +2.70% |
Current Liabilities | $2.51B | $2.14B | +17.21% |
Stockholders' Equity | $7.49B | $7.14B | +4.93% |
Long-Term Debt | $3.29B | $2.97B | +10.70% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Investing Cash Flow | $-61.66M | $-74.19M | +16.88% |
Financing Cash Flow | $-161.45M | $-122.23M | -32.08% |
Share Buybacks | $53.94M | $40.7M | +32.52% |
D&A | $97.42M | $87.42M | +11.44% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 38.9% | 40.0% | -1.09% |
Operating Margin | 14.9% | 15.9% | -0.98% |
Net Margin | 11.6% | — | — |
ROE | 3.2% | — | — |
ROA | 1.8% | — | — |
Current Ratio | $1.865 | — | — |
Other companies in Industrial Machinery & Supplies & Components
Dover reported Q1 2026 revenue of $2.05B, up 10.1% YoY, and net income of $238.4M, up 3.3% YoY. Diluted EPS came in at $1.75, a 4.8% increase from $1.67 in Q1 2025, though margin compression was a notable headwind.
Dover's gross margin fell approximately 110 basis points YoY to 38.9% because cost of revenue grew 12.0%, faster than the 10.1% revenue growth. Operating margin also contracted about 100 basis points to 14.9%, as SG&A expenses rose 9.6% YoY to $492.2M, limiting operating leverage.
Dover's balance sheet shows total assets of $13.5B and stockholders' equity of $7.5B, with a healthy current ratio of 1.87x. However, long-term debt rose 10.7% YoY to $3.29B and current liabilities surged 17.2%, trends worth monitoring going forward.
Yes, Dover repurchased $53.9M in shares during Q1 2026, a 32.5% increase compared to $40.7M in Q1 2025, reflecting management's continued commitment to returning capital to shareholders.
Key risks include input cost inflation compressing gross margins (cost of revenue up 12.0% vs. revenue up 10.1%), rising long-term debt (up 10.7% to $3.29B), and a 17.2% surge in current liabilities that tightened the liquidity cushion. SG&A cost leverage also remains a concern if revenue growth slows.