A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
For Q2 FY2026, ESS achieved modest revenue growth of 4.1% year-over-year to $489.05M, but operating income fell 60.9% to $109.37M due to a sharp compression in operating margins.
Revenue
$489.05M
+4.09% YoY
EPS (Diluted)
$0.97
-71.80% YoY
Gross Margin
70.7%
-0.0 pts YoY
Operating Income
$109.37M
-60.90% YoY
Filed · Source: SEC EDGAR 10-Q filing
Essex Property Trust (ESS) reported Q2 FY2026 revenue of $489.05M, up 4.1% year over year. Diluted EPS was $0.97. Gross margin was 70.7%. Operating income was $109.37M, down 60.9% year over year. The company returned $11.7M of share repurchases to shareholders. ESS's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
ESS Q2 FY2026 revenue increased 4.1% YoY to $489.05M, but operating income fell 60.9% to $109.37M.
Last 4 quarters: 3 beats, 1 miss
Adjusted (non-GAAP) EPS of $4.08 versus the $1.48 analyst consensus — a +175.9% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.97.
Revenue grew by 4.1% year-over-year to $489.05M in Q2 FY2026 compared to $469.83M in Q2 FY2025, while gross margin remained flat at 70.69% compared to 70.70% in the prior year period.
Source: 10-Q Income Statement (XBRL)
Operating income experienced a steep decline of 60.9% year-over-year to $109.37M, causing operating margin to contract by 37.2 percentage points from 59.53% to 22.36% due to higher operating expenses.
Source: 10-Q Income Statement (XBRL)
Year-to-date operating cash flow expanded by 8.8% to $541.23M compared to $497.63M in the prior year period, even as financing cash outflows accelerated to $517.84M YTD.
Source: 10-Q Cash Flow Statement (XBRL)
Operating income plunged 60.9% year-over-year to $109.37M, highlighting severe margin pressure from expanding operating costs that significantly outpaced revenue growth.
Source: 10-Q Income Statement (XBRL)
With long-term debt standing at $6.39B against stockholders' equity of $5.32B (Debt to Equity ratio of 1.39), the company faces debt servicing obligations and interest rate sensitivities.
Source: 10-Q Balance Sheet (XBRL)
Cash and cash equivalents of $58.33M represent a minimal liquidity cushion against total liabilities of $7.39B, relying heavily on sustained operating cash flow.
Source: 10-Q Balance Sheet (XBRL)
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
See the ESS earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $489.05M | $469.83M | +4.09% |
Gross Profit | $345.71M | $332.18M | +4.07% |
Operating Income | $109.37M | $279.7M | -60.90% |
EPS (Basic) | $0.97 | $3.44 | -71.80% |
EPS (Diluted) | $0.97 | $3.44 | -71.80% |
ESS posted Q2 FY2026 revenue of $489.05M (+4.1% YoY) and gross profit of $345.71M. However, operating income declined 60.9% to $109.37M and diluted EPS fell 71.8% to $0.97 due to compressed operating margins.
Revenue grew 4.1% year-over-year from $469.83M in Q2 FY2025 to $489.05M in Q2 FY2026. Gross profit increased at a matching 4.1% pace to $345.71M, holding gross margins stable at 70.69%.
ESS maintained strong operating cash flow of $541.23M YTD (+8.8% YoY) and holds $12.90B in total assets. However, liquidity is tight with cash & equivalents at $58.33M against $6.39B in long-term debt and a Debt to Equity ratio of 1.39.
Expected release date, analyst estimates & what to watch
ESS posted modest revenue growth of 4.3% to $484.8M in Q1 FY2026, but operating income plunged 39.6% to $155.2M and EPS fell nearly 48% to $1.65, signaling significant cost or non-cash headwinds despite stable gross margins above 70%.
ESS delivered solid FY2025 results with revenue growing 6.4% to $1.89B and operating income surging 27.9% to $899M, though basic EPS declined 10.0% to $10.40, likely reflecting a higher share count or non-operating items.
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