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
IR (Ingersoll Rand) reported FY2025 revenue growth of 5.7% to $7.65B, but profitability declined sharply with net income falling 30.7% to $581.4M, driven by higher SG&A costs and increased share buybacks that reduced EPS to $1.45 diluted.
Revenue
$7.65B
+5.75% YoY
EPS (Diluted)
$1.45
-29.61% YoY
Gross Margin
43.6%
-0.2 pts YoY
Operating Income
$1.14B
-11.96% YoY
Source: SEC XBRL
Ingersoll Rand (IR) reported FY2025 revenue of $7.65B, up 5.7% year over year. Operating margin was 15.0%, down 3.0 points from 18.0% a year earlier. Operating cash flow was $1.36B, down 2.9% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.86 | 0.85 | Beat +1.0% |
| Mar 2026 | 0.77 | 0.76 | Beat +1.0% |
| Dec 2025 | 0.77 | 0.76 | Beat +1.0% |
| Sep 2025 | 0.86 | 0.89 | Miss -2.9% |
Compiled by AI from this SEC filing
IR achieved revenue of $7.65B in FY2025, up 5.7% year-over-year from $7.24B, reflecting continued demand across its industrial segments despite a challenging macroeconomic backdrop.
Source: 10-K Income Statement, Financial Data
Operating income declined 12.0% to $1.14B as SG&A expenses surged 7.1% to $1.44B, compressing operating margin by approximately 300 basis points to 14.96% from 17.97% in the prior year.
Source: 10-K Income Statement, Financial Data
Net income fell 30.7% to $581.4M from $838.6M, with net margin contracting to 7.6%, suggesting significant non-operating charges or higher interest/tax expenses beyond the operating line.
Source: 10-K Income Statement, Financial Data
IR dramatically accelerated its share repurchase program, spending $1.02B on buybacks in FY2025 versus $260.7M in the prior year — a 290.5% increase — signaling management confidence in long-term value despite near-term earnings pressure.
Source: 10-K Cash Flow Statement, Financial Data
The company maintained a current ratio of 2.06x with $1.25B in cash and equivalents, though cash declined 19.0% year-over-year, partly reflecting the elevated buyback activity and financing outflows of $1.05B.
Source: 10-K Balance Sheet & Cash Flow Statement, Financial Data
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Net income dropped 30.7% year-over-year to $581.4M despite only modest revenue growth of 5.7%, indicating that cost inflation — particularly in SG&A — is outpacing top-line expansion. If this trend continues, investor confidence and valuation multiples could come under pressure.
Source: 10-K Income Statement, Financial Data
SG&A expenses grew 7.1% to $1.44B, faster than revenue growth of 5.7%, compressing operating margin to 14.96% from 17.97%. Sustained cost growth without corresponding revenue acceleration poses a structural margin risk.
Source: 10-K Income Statement, Financial Data
Cash and equivalents fell 19.0% to $1.25B as the company deployed $1.02B in share buybacks and generated negative financing cash flow of $1.05B. While buybacks signal confidence, the rapid cash drawdown reduces financial flexibility for acquisitions or downturns.
Source: 10-K Balance Sheet & Cash Flow Statement, Financial Data
Current liabilities increased 13.6% to $2.07B, growing significantly faster than current assets (+2.0% to $4.25B). Although the current ratio remains healthy at 2.06x, the trend warrants monitoring as obligations build.
Source: 10-K Balance Sheet, Financial Data
R&D spending declined 2.0% to $114.3M, representing less than 1.5% of total revenue. In a competitive industrial technology environment, underinvestment in innovation could erode IR's long-term competitive positioning.
Source: 10-K Income Statement, Financial Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 7.65 $B | 7.24 $B | +5.75% |
Cost of Revenue $B | 4.31 $B | 4.07 $B | +6.14% |
Gross Profit $B | 3.34 $B | 3.17 $B | +5.25% |
Operating Income $B | 1.14 $B | 1.30 $B | -11.96% |
Net Income $M | 581.40 $M | 838.60 $M | -30.67% |
EPS (Basic) $ | 1.46 $ | 2.08 $ | -29.81% |
EPS (Diluted) $ | 1.45 $ | 2.06 $ | -29.61% |
R&D Expense $M | 114.30 $M | 116.60 $M | -1.97% |
SG&A Expense $B | 1.44 $B | 1.34 $B | +7.06% |
Answers draw on this SEC filing and the data on this page
Ingersoll Rand delivered 8.5% YoY revenue growth to $2.05B and returned to net profitability with $256.8M in net income for Q2 FY2026, driven by organic demand, acquisition contributions, and the non-recurrence of prior-year impairment charges.
IR (Ingersoll Rand) delivered Q1 FY2026 revenue of $1.85B (+7.6% YoY) and net income of $192.1M (+3.0% YoY), but margin compression and a 22.1% decline in operating cash flow signal rising cost pressures.
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