AI Takeaway
PNR delivered solid Q1 FY2026 results with revenue up 2.6% YoY to $1.04B, net income surging 11.3% to $172.4M, and gross margin expanding ~190 bps to 41.8%, though operating cash flow remained negative at -$67.4M.
Revenue
$1.04B
++2.60% YoY
EPS (Basic)
$1.06
++12.77% YoY
Gross Margin
41.8%
++1.89% YoY
Operating Income
$210M
++3.40% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
PNR grew Q1 FY2026 revenue by 2.6% YoY to $1,036.7M from $1,010.4M, suggesting steady demand across its business segments despite a challenging macro environment.
Source: Source: 10-Q Income Statement, Q1 FY2026
Gross margin improved approximately 190 basis points to 41.8% from 39.9%, driven by a 0.6% YoY decline in cost of revenue to $603.3M even as revenue grew, indicating better operational leverage or favorable product mix.
Source: Source: 10-Q Income Statement & Key Ratios, Q1 FY2026
SG&A expenses rose sharply by 12.6% YoY to $198.9M from $176.6M, representing a meaningful cost pressure that limited operating margin expansion to just ~20 bps despite strong gross profit growth of 7.5%.
Source: Source: 10-Q Income Statement, Q1 FY2026
2 more insights available
Upgrade to unlockOperating cash flow worsened to -$67.4M in Q1 FY2026 versus -$38.9M a year ago, while cash on hand dropped 51.8% YoY to only $67.7M. This combination could constrain PNR's ability to fund operations, service debt, or pursue strategic investments without drawing on credit facilities.
Source: Source: 10-Q Cash Flow Statement & Balance Sheet, Q1 FY2026
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.22 versus the $1.18 analyst consensus — a +3.3% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.04B | $1.01B | +2.60% |
Cost of Revenue | $603.3M | $607.1M | -0.63% |
Gross Profit | $433.4M | $403.3M | +7.46% |
Operating Income | $210M | $203.1M | +3.40% |
Net Income | $172.4M | $154.9M | +11.30% |
EPS (Basic) | $1.06 | $0.94 | +12.77% |
EPS (Diluted) | $1.05 | $0.93 | +12.90% |
R&D Expense | $24.5M | $23.6M | +3.81% |
SG&A Expense | $198.9M | $176.6M | +12.63% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $7.07B | $6.75B | +4.81% |
Current Assets | $1.76B | $1.73B | +2.08% |
Total Liabilities | $3.26B | $3.11B | +4.76% |
Current Liabilities | $939.5M | $912.7M | +2.94% |
Cash & Equivalents | $67.7M | $140.6M | -51.85% |
Long-Term Debt | $1.94B | $1.84B | +5.92% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-67.4M | $-38.9M | -73.26% |
Investing Cash Flow | $-18.3M | $-16.8M | -8.93% |
Financing Cash Flow | $50.6M | $87.1M | -41.91% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 41.8% | 39.9% | +1.89% |
Operating Margin | 20.3% | 20.1% | +0.16% |
Net Margin | 16.6% | — | — |
ROA | 2.4% | — | — |
Current Ratio | $1.877 | — | — |
Other companies in Industrial Machinery & Supplies & Components
Based on the filing data, PNR reported diluted EPS of $1.05 in Q1 FY2026, up 12.9% YoY from $0.93, and net income of $172.4M, up 11.3% YoY. Whether this beat Wall Street consensus estimates would require comparison to analyst forecasts, which are not included in the 10-Q filing itself.
PNR delivered revenue of $1,036.7M (+2.6% YoY), gross margin expansion of ~190 bps to 41.8%, and diluted EPS growth of 12.9% to $1.05. However, SG&A expenses surged 12.6% YoY and operating cash flow deteriorated to -$67.4M, which are areas investors should monitor closely.
PNR's revenue grew 2.6% YoY to $1,036.7M in Q1 FY2026, up from $1,010.4M in Q1 FY2025. The growth was modest but accompanied by meaningful margin improvement, as cost of revenue actually declined 0.6% YoY, driving gross profit up 7.5% to $433.4M.
The financial data points to several key risks: operating cash flow worsened to -$67.4M (down 73.3% YoY), cash and equivalents fell 51.8% YoY to just $67.7M, and long-term debt rose 5.9% to $1,944.3M. Additionally, SG&A expenses grew at 12.6% YoY, far outpacing revenue growth of 2.6%, which could pressure future profitability.
PNR's profitability metrics are solid, with a net margin of ~16.6% and a current ratio of ~1.88, but liquidity is a concern given cash of only $67.7M and negative free cash flow of approximately -$85.7M in Q1 FY2026. The company carries $1,944.3M in long-term debt, and the continued negative operating cash flow trend will be an important factor to watch in upcoming quarters.