Revenue Growth Driven by Top-Line Expansion
PPG grew Q1 FY2026 revenue by 6.7% year-over-year to $3.93B (from $3.68B), suggesting volume gains and/or pricing power across its coatings and specialty products segments.
Source: 10-Q Income Statement
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
PPG delivered solid Q1 FY2026 revenue growth of 6.7% to $3.93B, but net income rose only 2.4% to $382M as SG&A expenses climbed 5.6% and operating margin compressed slightly to 16.2%.
Revenue
$3.93B
+6.68% YoY
EPS (Diluted)
$1.70
+4.29% YoY
Operating Income
$636M
+4.78% YoY
Source: SEC XBRL
Ppg Industries (PPG) reported Q1 FY2026 revenue of $3.93B, up 6.7% year over year. Operating margin was 16.2%, down 0.3 points from 16.5% a year earlier. Operating cash flow was $33M. PPG's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.23 | 2.28 | Miss -2.1% |
| Mar 2026This filing | 1.83 | 1.79 | Beat +2.4% |
| Dec 2025 | 1.51 | 1.60 | Miss -5.5% |
| Sep 2025 | 2.13 | 2.11 | Beat +0.9% |
Adjusted (non-GAAP) EPS of $1.83 versus the $1.79 analyst consensus — a +2.4% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.70.
Compiled by AI from this SEC filing
PPG grew Q1 FY2026 revenue by 6.7% year-over-year to $3.93B (from $3.68B), suggesting volume gains and/or pricing power across its coatings and specialty products segments.
Source: 10-Q Income Statement
Cost of Revenue rose 6.2% to $2.28B and SG&A increased 5.6% to $885M, meaning operating expenses grew nearly in line with revenue, constraining margin expansion and limiting net income growth to just 2.4%.
Source: 10-Q Income Statement
Operating margin declined modestly from 16.5% to 16.2% year-over-year, reflecting the combined effect of higher input costs and elevated selling and administrative expenses relative to revenue growth.
Source: 10-Q Income Statement, Key Ratios
Total liabilities fell 1.1% to $13.90B while stockholders' equity surged 17.0% to $8.10B, and long-term debt declined 2.0% to $7.10B, indicating a healthier capital structure and improved leverage profile.
Source: 10-Q Balance Sheet
Operating cash flow improved dramatically to $33M from -$18M in Q1 FY2025, a 283.3% improvement, though the absolute level remains modest and investing outflows increased 66.1% to -$279M, reflecting higher capital deployment.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
PPG carries $7.10B in long-term debt against stockholders' equity of $8.10B, resulting in a debt-to-equity ratio of approximately 1.71x. While this has improved year-over-year, the leverage level remains significant and could constrain financial flexibility if earnings deteriorate or interest rates rise further.
Source: 10-Q Balance Sheet, Key Ratios
SG&A expenses grew 5.6% and cost of revenue grew 6.2%, both outpacing or matching revenue growth, leading to slight operating margin erosion. If raw material costs or labor expenses continue to rise, PPG's profitability could face further pressure.
Source: 10-Q Income Statement
Despite turning positive, Q1 FY2026 operating cash flow of only $33M is very low relative to $3.93B in revenue, suggesting significant working capital consumption. This limits PPG's ability to self-fund investments and shareholder returns without drawing on debt or cash reserves.
Source: 10-Q Cash Flow Statement
Cash and equivalents fell 14.0% year-over-year to $1.57B, while financing cash outflows were -$334M compared to +$698M in Q1 FY2025. This reversal in financing activity, combined with lower cash balances, reduces the liquidity buffer available for opportunistic investments or economic downturns.
Source: 10-Q Balance Sheet, Cash Flow Statement
Share repurchases declined sharply by 75.6% to $96M from $394M in Q1 FY2025, suggesting PPG is prioritizing cash conservation or debt management over returning capital to shareholders, which may disappoint income-oriented investors.
Source: 10-Q Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.93 $B | 3.68 $B | +6.68% |
Cost of Revenue $B | 2.28 $B | 2.14 $B | +6.21% |
Operating Income $M | 636.00 $M | 607.00 $M | +4.78% |
Net Income $M | 382.00 $M | 373.00 $M | +2.41% |
EPS (Basic) $ | 1.71 $ | 1.63 $ | +4.91% |
EPS (Diluted) $ | 1.70 $ | 1.63 $ | +4.29% |
SG&A Expense $M | 885.00 $M | 838.00 $M | +5.61% |
Answers draw on this SEC filing and the data on this page
In 2026-Q2, PPG reported net sales of $4.50B, up 7.2% year-over-year, while net income attributable to PPG fell slightly to $439M due to raw material inflation and weakness in automotive refinish coatings, partially offset by strength in aerospace and packaging coatings.
PPG Industries delivered a strong FY2025 with net income surging 41.2% to $1.576B on nearly flat revenue of $15.875B, driven by improved profitability and robust operating cash flow growth of 36.7%.
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