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
Generac's second quarter of fiscal 2026 was defined by a sharp divergence between its segments: Commercial & Industrial revenue surged 29.2%, outweighing a 2.1% decline in Residential. That mix shift pushed gross margin to 44.5% from 39.3%, the highest in recent quarters. The result, however, leans heavily on sustained C&I demand, as residential weakness endures.
Revenue
$1.17B
+10.59% YoY
EPS (Diluted)
$2.40
+92.00% YoY
Gross Margin
44.5%
+5.2 pts YoY
Operating Income
$210.43M
+88.24% YoY
Source: SEC XBRL
Generac Holdings (GNRC) reported Q2 FY2026 revenue of $1.17B, up 10.6% year over year. Operating margin was 17.9%, up 7.4 points from 10.5% a year earlier. GNRC's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 2.91 | 2.05 | Beat +41.8% |
| Mar 2026 | 1.80 | 1.36 | Beat +32.8% |
| Dec 2025 | 1.61 | 1.80 | Miss -10.8% |
| Sep 2025 | 1.83 | 2.24 | Miss -18.4% |
Adjusted (non-GAAP) EPS of $2.91 versus the $2.05 analyst consensus — a +41.8% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.40.
2 reported segments · SEC XBRL
Segment revenue totals $1.18B; with -$4.24M of reconciling items (corporate, unallocated and eliminations) it ties to the $1.17B of consolidated revenue on the income statement.
Compiled by AI from this SEC filing
Operating income grew 88.2% to $210.4M, driven by a 5.2 percentage point gross margin improvement and only a modest 9% increase in R&D expense, demonstrating strong operating leverage.
Source: 10-Q Income Statement (XBRL)
Cumulative operating cash flow reached $240.5M, up 84.5% from $130.3M in the prior-year period, reflecting higher net income and improved working capital efficiency.
Source: 10-Q Cash Flow Statement (XBRL)
The company did not repurchase any shares in the first half of fiscal 2026, compared to $147.9M in the prior-year period, indicating a shift in capital allocation priorities.
Source: 10-Q Cash Flow Statement (XBRL)
Long-term debt declined to $1.191B from $1.280B, a 6.9% reduction, suggesting ongoing deleveraging.
Source: 10-Q Balance Sheet (XBRL)
Compiled by AI from this SEC filing · 1 high, 2 medium, 2 low
Residential revenue fell 2.1% year-over-year, indicating potential softening demand in the home standby generator market. If this trend accelerates, it could materially impact overall growth.
Source: 10-Q Segment Data (XBRL)
Strong 29.2% growth in C&I offset residential weakness. Any slowdown in C&I demand—due to economic cyclicality or project delays—would leave the company without a growth engine.
Source: 10-Q Segment Data (XBRL)
Gross margin improved 5.2 percentage points to 44.5%, largely due to favorable revenue mix. If mix reverts toward lower-margin residential products, margins could compress.
Source: 10-Q Income Statement (XBRL)
Despite debt reduction, the debt-to-equity ratio remains at 1.01, which could amplify earnings volatility and constrain financial flexibility in a downturn.
Source: 10-Q Balance Sheet (XBRL)
The halt of share repurchases and an increase in R&D spending signal a shift in strategy. Returns on these investments are uncertain and may not materialize in the near term.
Source: 10-Q Cash Flow Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.17 $B | 1.06 $B | +10.59% |
Cost of Revenue $M | 651.70 $M | 644.42 $M | +1.13% |
Gross Profit $M | 521.81 $M | 416.75 $M | +25.21% |
Operating Income $M | 210.43 $M | 111.79 $M | +88.24% |
Net Income $M | 143.24 $M | 74.02 $M | +93.53% |
EPS (Basic) $ | 2.44 $ | 1.27 $ | +92.13% |
EPS (Diluted) $ | 2.40 $ | 1.25 $ | +92.00% |
R&D Expense $M | 65.78 $M | 60.35 $M | +8.99% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
GNRC delivered strong Q1 FY2026 results with revenue up 12.4% YoY to $1.06B, net income surging 67.1% to $73.3M, and operating cash flow more than doubling to $119.3M, reflecting improved operational leverage.
GNRC's FY2025 10-K reveals a significant earnings decline, with net income falling nearly 50% to $159.6M and operating income dropping 46.1% to $289.2M on slightly lower revenue of $4.21B, as rising R&D investment and cost pressures compressed margins sharply.
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