AI Takeaway
Ecolab delivered solid Q1 2026 results with revenue up 10.0% YoY to $4.07B and operating income rising 12.0% to $622M, though cash balances declined sharply and current liabilities surged 32.3%, tightening near-term liquidity.
Revenue
$4.07B
++10.04% YoY
EPS (Basic)
$1.53
++7.75% YoY
Operating Income
$622M
++12.01% YoY
Filed · Source: SEC EDGAR 10-Q filing
Revenue grew 10.0% year-over-year to $4.07B in Q1 2026 (from $3.70B in Q1 2025), reflecting broad-based demand across Ecolab's cleaning, sanitizing, and water treatment segments. This growth rate outpaces the prior year's base, suggesting continued pricing power and volume gains.
Source: Source: 10-Q Income Statement Data
Operating income increased 12.0% YoY to $622M, slightly outpacing revenue growth of 10.0%, which pushed operating margin modestly higher to 15.3% from 15.0%. SG&A expenses grew at a more modest 5.0% YoY to $1.10B, demonstrating disciplined cost control relative to top-line expansion.
Source: Source: 10-Q Income Statement Data
Cost of revenue rose 11.4% YoY to $2.30B, marginally faster than the 10.0% revenue growth rate, indicating modest gross margin compression. This reflects ongoing input cost pressures that partially offset the benefits of revenue growth.
Source: Source: 10-Q Income Statement Data
2 more insights available
Upgrade to unlockEcolab's current ratio fell to 0.991 in Q1 2026, meaning current liabilities of $6.10B now exceed current assets of $6.04B. Current liabilities surged 32.3% YoY, while current assets declined 0.6%, creating a potential short-term liquidity squeeze if market conditions deteriorate.
Source: Source: 10-Q Balance Sheet Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.70 versus the $1.71 analyst consensus — a -0.7% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.07B | $3.69B | +10.04% |
Cost of Revenue | $2.3B | $2.06B | +11.41% |
Operating Income | $622M | $555.3M | +12.01% |
Net Income | $432.6M | $402.5M | +7.48% |
EPS (Basic) | $1.53 | $1.42 | +7.75% |
EPS (Diluted) | $1.52 | $1.41 | +7.80% |
SG&A Expense | $1.1B | $1.05B | +4.99% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $25.04B | $22.37B | +11.96% |
Current Assets | $6.04B | $6.08B | -0.63% |
Total Liabilities | $15.01B | $13.46B | +11.48% |
Current Liabilities | $6.1B | $4.61B | +32.25% |
Stockholders' Equity | $10B | $8.88B | +12.71% |
Cash & Equivalents | $519.8M | $1.16B | -55.29% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $445.9M | $369.4M | +20.71% |
Investing Cash Flow | $-355.5M | $-224M | -58.71% |
Financing Cash Flow | $-225.8M | $-241.6M | +6.54% |
Share Buybacks | $344.4M | $153.7M | +124.07% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 15.3% | 15.0% | +0.27% |
Net Margin | 10.6% | — | — |
ROE | 4.3% | — | — |
ROA | 1.7% | — | — |
Current Ratio | $0.991 | — | — |
Debt to Equity | $1.5 | — | — |
Other companies in Specialty Chemicals
Ecolab reported Q1 2026 revenue of $4.07B, up 10.0% YoY, with diluted EPS of $1.52, up 7.8% from $1.41 in Q1 2025. Operating income grew 12.0% to $622M, reflecting solid demand and disciplined cost management.
The key takeaways are strong revenue and operating income growth of 10% and 12% respectively, accelerated share buybacks of $344M (up 124% YoY), and a tightening liquidity position with cash falling 55% to $520M and the current ratio dipping just below 1.0. Operating cash flow improved 20.7% to $446M, partially offsetting liquidity concerns.
Ecolab's earnings quality is solid, with operating cash flow of $446M outpacing net income of $433M, but near-term liquidity has tightened — cash fell to $520M from $1.16B a year ago and the current ratio is 0.99x. The debt-to-equity ratio of 1.50x is manageable but leaves limited financial flexibility.
Ecolab's cash and equivalents fell 55.3% YoY to $519.8M, driven by a significant increase in share buybacks ($344M, up 124% YoY) and higher investing outflows of $355.5M (up 58.7% YoY). These capital allocation decisions reflect management's confidence in the business but meaningfully reduced the company's cash cushion.
Operating margin improved modestly to 15.3% from 15.0% in Q1 2025, as SG&A growth of 5.0% lagged revenue growth of 10.0%. However, gross margin faced slight pressure as cost of revenue grew 11.4%, faster than the 10.0% revenue growth, suggesting some input cost headwinds at the gross profit level.