Organic sales growth composition
Organic sales growth of 5% was driven by 4% from pricing and 1% from volume, while acquisitions contributed an additional 3% to reported growth.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Ecolab achieved 5% organic sales growth in Q2 FY2026, led by a 29% surge in High-Tech within Global Water, while special charges from the One Ecolab restructuring program weighed on reported earnings. Adjusted diluted EPS rose 11%, reflecting strong underlying operating performance. The company raised significant debt to fund the CoolIT Systems acquisition, temporarily inflating cash balances and leverage.
Revenue
$4.42B
+9.69% YoY
EPS (Diluted)
$1.90
+3.26% YoY
Operating Income
$757.9M
+6.73% YoY
Source: SEC XBRL
Ecolab (ECL) reported Q2 FY2026 revenue of $4.42B, up 9.7% year over year. Operating margin was 17.2%, down 0.4 points from 17.6% a year earlier. ECL's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 0 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 2.09 | 2.10 | Miss -0.6% |
| Mar 2026 | 1.70 | 1.71 | Miss -0.7% |
| Dec 2025 | 2.08 | 2.09 | Miss -0.3% |
| Sep 2025 | 2.07 | 2.09 | Miss -1.1% |
Adjusted (non-GAAP) EPS of $2.09 versus the $2.10 analyst consensus — a -0.6% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.90.
4 reported segments · SEC XBRL
Segment revenue totals $4.42B, which is the $4.42B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure ECL itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Organic sales growth of 5% was driven by 4% from pricing and 1% from volume, while acquisitions contributed an additional 3% to reported growth.
Source: 10-Q Item 2 MD&A
High-Tech organic sales rose 29% in the second quarter, driven by new business wins in microelectronics and data centers.
Source: 10-Q Item 2 MD&A
Special charges totaled $57.7 million in Q2 2026, primarily from the One Ecolab restructuring initiative and acquisition integration, with total One Ecolab costs expected to reach $328 million by 2027 for an estimated $325 million in annual savings.
Source: 10-Q Item 2 MD&A
Reported gross margin compressed to 44.1% from 44.8%, but on an organic basis margin improved 0.1 percentage points to 44.9% as pricing offset higher commodity costs.
Source: 10-Q Item 2 MD&A
Operating cash flow increased $104 million year-to-date to $1.175 billion, while the company issued $5.1 billion in debt, boosting cash to $5.1 billion ahead of the July 2, 2026 closing of the CoolIT Systems acquisition.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 0 high, 4 medium, 1 low
Cost of revenue increased 11.1% year-over-year, outpacing revenue growth of 9.7%, which indicates persistent commodity cost inflation that could erode margins if pricing actions are unable to offset further increases.
Source: 10-Q Income Statement (XBRL)
Operating income grew only 6.7% compared to revenue growth of 9.7%, suggesting rising operating expenses or non-recurring charges that may continue to pressure profitability.
Source: 10-Q Income Statement (XBRL)
Total liabilities surged 37.9% to $19.8 billion, and the debt-to-equity ratio rose to 1.97, significantly increasing financial leverage and making the company more sensitive to interest rate changes and refinancing risks.
Source: 10-Q Balance Sheet (XBRL)
Cash used for investing activities increased 40.4% year-to-date to $629.5 million, reflecting higher capital expenditures and acquisition spending, which may strain free cash flow if operating cash flow does not keep pace.
Source: 10-Q Cash Flow Statement (XBRL)
Share buybacks totaled $669 million year-to-date, a 236% increase, which may reduce financial flexibility and returns to shareholders if debt levels remain elevated.
Source: 10-Q Cash Flow Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.42 $B | 4.03 $B | +9.69% |
Cost of Revenue $B | 2.47 $B | 2.22 $B | +11.10% |
Operating Income $M | 757.90 $M | 710.10 $M | +6.73% |
Net Income $M | 534.90 $M | 524.20 $M | +2.04% |
EPS (Basic) $ | 1.91 $ | 1.85 $ | +3.24% |
EPS (Diluted) $ | 1.90 $ | 1.84 $ | +3.26% |
SG&A Expense $B | 1.14 $B | 1.07 $B | +6.92% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
Ecolab (ECL) delivered FY2025 revenue growth of 2.2% to $16.1B, but operating income and net income declined modestly as higher SG&A costs and a sharp increase in investing activity weighed on profitability and cash balances.
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