AI Takeaway
IEX delivered strong Q1 FY2026 results with revenue up 8.9% to $886.9M, net income surging 25.7% to $120.0M, and EPS rising 27.8% to $1.61, driven by operating leverage that expanded operating margin by 200 basis points year-over-year.
Revenue
$886.9M
++8.92% YoY
EPS (Basic)
$1.61
++27.78% YoY
Gross Margin
44.9%
-0.42% YoY
Operating Income
$172.4M
++21.41% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
IEX grew total revenue by 8.9% year-over-year to $886.9M in Q1 FY2026, up from $814.3M in the prior-year period, reflecting continued demand across its business segments.
Source: Source: 10-Q Income Statement
Operating income jumped 21.4% to $172.4M, with operating margin expanding approximately 200 basis points to 19.4% from 17.4%, as SG&A expense growth was contained to just 4.3% YoY ($218.3M vs. $209.4M), well below the revenue growth rate.
Source: Source: 10-Q Income Statement
Net income grew 25.7% to $120.0M and both basic and diluted EPS rose 27.8% to $1.61, outpacing revenue growth and indicating meaningful operating and financial leverage in the business model.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockGross margin declined slightly to 44.9% from 45.3% year-over-year, as cost of revenue grew 9.7%—faster than revenue growth of 8.9%. Sustained input cost pressures or unfavorable product mix shifts could further compress profitability if not offset by pricing or efficiency gains.
Source: Source: 10-Q Income Statement, Key Ratios
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.00 versus the $1.79 analyst consensus — a +11.7% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $886.9M | $814.3M | +8.92% |
Cost of Revenue | $488.8M | $445.4M | +9.74% |
Gross Profit | $398.1M | $368.9M | +7.92% |
Operating Income | $172.4M | $142M | +21.41% |
Net Income | $120M | $95.5M | +25.65% |
EPS (Basic) | $1.61 | $1.26 | +27.78% |
EPS (Diluted) | $1.61 | $1.26 | +27.78% |
SG&A Expense | $218.3M | $209.4M | +4.25% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $6.92B | $6.8B | +1.82% |
Current Assets | $1.72B | $1.63B | +5.53% |
Total Liabilities | $2.87B | $2.89B | -0.66% |
Current Liabilities | $506M | $583.6M | -13.30% |
Stockholders' Equity | $4.05B | $3.91B | +3.67% |
Cash & Equivalents | $586.2M | $594.1M | -1.33% |
Long-Term Debt | $1.88B | $1.95B | -3.57% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $103.7M | $105.7M | -1.89% |
Investing Cash Flow | $-20.4M | $-10M | -104.00% |
Financing Cash Flow | $-68.8M | $-133.3M | +48.39% |
Share Buybacks | $76.3M | $50M | +52.60% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 44.9% | 45.3% | -0.42% |
Operating Margin | 19.4% | 17.4% | +2.00% |
Net Margin | 13.5% | — | — |
ROE | 3.0% | — | — |
ROA | 1.7% | — | — |
Current Ratio | $3.393 | — | — |
Debt to Equity | $0.709 | — | — |
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IEX delivered strong Q1 FY2026 results, with revenue growing 8.9% to $886.9M and net income surging 25.7% to $120.0M. EPS came in at $1.61, up 27.8% year-over-year, driven by significant operating leverage and disciplined cost management.
The primary driver of IEX's earnings growth in Q1 FY2026 was operating leverage: while revenue grew 8.9%, SG&A expenses grew only 4.3%, causing operating income to jump 21.4% to $172.4M and operating margin to expand to 19.4%. Share buybacks also contributed to the 27.8% EPS growth by reducing the share count.
Key risks include modest gross margin compression (44.9% vs. 45.3% prior year) as cost of revenue grew faster than revenue, operating cash flow that declined 1.9% despite strong net income growth suggesting working capital headwinds, and $1.88B in long-term debt that could pose refinancing risk in a higher-rate environment.
IEX appears financially healthy, with a strong current ratio of 3.39, declining long-term debt of $1.88B (down 3.6% YoY), and growing stockholders' equity of $4.05B. The company also generated $103.7M in operating cash flow and held $586.2M in cash and equivalents at quarter end.
Yes, IEX repurchased $76.3M in shares during Q1 FY2026, a significant 52.6% increase compared to $50.0M in buybacks in the prior-year period. This accelerated capital return program contributed to the outsized EPS growth of 27.8%, which exceeded net income growth of 25.7%.