A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Trane Technologies reported strong net revenue growth of 10.6% YoY to $6.35B in Q2 FY2026, driven by volume growth in the Americas and Asia Pacific, though gross margin contracted 200 bps due to inflation and investments.
Revenue
$6.35B
+10.56% YoY
EPS (Diluted)
$4.16
+6.94% YoY
Operating Income
$1.22B
+5.16% YoY
Filed · Source: SEC EDGAR 10-Q filing
Trane Technologies (TT) reported Q2 FY2026 revenue of $6.35B, up 10.6% year over year. The company posted net income of $925.7M, up 5.8% from a year earlier, with diluted EPS of $4.16. Operating income was $1.22B, up 5.2% year over year. TT's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Trane Technologies achieved 10.6% YoY revenue growth to $6.35B in Q2 FY2026, led by strong Americas HVAC demand, despite gross margin pressure from inflation.
Last 4 quarters: 1 beat, 3 misses
Adjusted (non-GAAP) EPS of $4.31 versus the $4.39 analyst consensus — a -1.9% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $4.16.
Net revenues grew 12.3% YoY in the Americas ($5,271.3M) and 11.1% YoY in Asia Pacific ($384.6M), primarily driven by higher commercial HVAC volume. In contrast, EMEA revenue fell 1.5% YoY to $697.6M due to soft transport refrigeration demand and Middle East geopolitical conflicts.
Source: 10-Q Item 2 MD&A, p.28-30
Trane Technologies paid $742M in cash for acquisitions during 6M FY2026, key among them being Stellar Energy Americas, Inc. and acquiring all remaining interest in LiquidStack to expand its data center liquid cooling footprint.
Source: 10-Q Item 2 MD&A, p.25, 34
Consolidated gross profit margin declined by 200 basis points YoY to 35.6% in Q2 FY2026. Management cited cost inflation and higher reinvestments in the business as the main drivers, which were only partially offset by productivity gains and price increases.
Source: 10-Q Item 2 MD&A, p.28
The company increased its quarterly dividend by 12% to $1.05 per share ($4.20 annualized) starting in Q1 FY2026 and repurchased $756.4M in ordinary shares during 6M FY2026, leaving $4.0B remaining under its share repurchase authorization.
Source: 10-Q Item 2 MD&A, p.34
Geopolitical instability, such as the conflict in the Middle East, along with weaker transport refrigeration end-markets in Europe and dynamic macroeconomic conditions in China, could harm revenue and segment margins.
Source: 10-Q Item 2 MD&A, p.26
Persistent inflation in human capital and supply chain inputs, coupled with strategic reinvestment costs, resulted in a 200 bps decline in gross margins during Q2 FY2026, which may continue to pressure profitability if pricing fails to keep pace.
Source: 10-Q Income Statement (XBRL)
Changes in global trade policies, trade protection measures, and retaliatory tariffs between the United States and other nations expose the company to potential supply chain disruptions and commodity price volatility.
Source: 10-Q Item 2 MD&A, p.26
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
See the TT earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.35B | $5.75B | +10.56% |
Cost of Revenue | $4.09B | $3.59B | +14.17% |
Operating Income | $1.22B | $1.16B | +5.16% |
Net Income | $925.7M | $874.8M | +5.82% |
EPS (Basic) | $4.19 | $3.92 | +6.89% |
EPS (Diluted) | $4.16 | $3.89 | +6.94% |
SG&A Expense | $1.04B | $996.4M | +3.91% |
Trane Technologies generated $6.35B in net revenues for Q2 FY2026, marking a 10.6% YoY increase. Net income rose 5.8% YoY to $925.7M, with diluted EPS reaching $4.16 (+6.9%). Operating cash flow for the year-to-date period surged 66.1% to $1.71B.
Revenue grew 10.6% YoY in Q2 FY2026 to $6.35B. Organic growth contributed 9.0% (led by an 8.7% volume increase and 0.3% pricing), while acquisitions added 1.2% and foreign exchange contributed 0.4%.
Gross margin fell 200 bps YoY to 35.6% during Q2 FY2026. Management attributed this compression primarily to higher inflation and increased business investments, which were only partially offset by operational productivity and pricing realization.
Expected release date, analyst estimates & what to watch
TT reported Q1 FY2026 revenue of $4.97B (+6.0% YoY) but saw operating income decline 5.2% to $776.1M as rising SG&A expenses (+10.9%) and cost of revenue (+7.6%) compressed margins, while operating cash flow surged 84.4% to $626.2M.
TT delivered solid FY2025 results with revenue growing 7.5% to $21.3B and net income rising 13.7% to $2.9B, driven by expanding operating margins and disciplined cost management.
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