ESCO Technologies (NYSE:ESE) Announces Earnings Results, Beats Estimates By $0.01 EPS

ESCO Technologies (NYSE:ESE) announced its quarterly earnings data on Thursday. The scientific and technical instruments company reported $1.91 earnings per share for the quarter, topping analysts’ consensus estimates of $1.90 by $0.01, FiscalAI reports. The firm had revenue of $309.34 million for the quarter, compared to analyst estimates of $307.88 million. ESCO Technologies had a return on equity of 13.12% and a net margin of 24.69%.ESCO Technologies’s quarterly revenue was up 33.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.35 earnings per share. ESCO Technologies updated its Q3 2026 guidance to 2.050-2.150 EPS and its FY 2026 guidance to 8.000-8.250 EPS.

Here are the key takeaways from ESCO Technologies’ conference call:

• Strong quarterly beat: orders rose 42% (22% organic), revenue +33.5%, adjusted EPS +63% to $1.91, adjusted EBIT margin improved 370 bps to 21.7%, backlog hit a record and full-year adjusted EPS guidance was raised to $8.00–$8.25.
• Acquisition of Megger progressing (regulatory filings underway) with expected close in Q1 FY2027; management expects the deal to be EPS-accretive in year 1 and materially accretive thereafter with an IRR meaningfully above WACC.
• Renewables/end-market weakness at NRG meaningfully weighed the Utility Solutions segment this quarter (orders and sales down), driven by developer pull-forward ahead of tax-credit sunsets, creating near-term volatility and uncertain timing of recovery despite the business remaining profitable.
• Test business momentum continues—orders +21% and sales +27% with margin expansion to 15.4%; management raised conviction on medium-term growth (now targeting ~4–6% organic) and expects to reach ~20% EBITDA margins faster than previously projected.

ESCO Technologies Price Performance

ESE traded down $29.94 during trading on Friday, reaching $302.83. 621,228 shares of the stock were exchanged, compared to its average volume of 335,416. The business’s 50 day moving average price is $292.85 and its two-hundred day moving average price is $246.69. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.33 and a quick ratio of 0.89. The company has a market capitalization of $7.84 billion, a price-to-earnings ratio of 25.47, a P/E/G ratio of 1.89 and a beta of 1.18. ESCO Technologies has a 1 year low of $172.70 and a 1 year high of $346.20.

ESCO Technologies Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, July 17th. Shareholders of record on Thursday, July 2nd will be given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date is Thursday, July 2nd. ESCO Technologies’s payout ratio is presently 2.72%.

Wall Street Analyst Weigh In

A number of analysts have commented on ESE shares. Weiss Ratings downgraded ESCO Technologies from a “buy (a-)” rating to a “buy (b)” rating in a research report on Tuesday, February 10th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $400.00 target price on shares of ESCO Technologies in a research report on Friday, April 17th. Finally, Wall Street Zen downgraded ESCO Technologies from a “buy” rating to a “hold” rating in a research report on Saturday. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $400.00.

Key Headlines Impacting ESCO Technologies

Here are the key news stories impacting ESCO Technologies this week:

• Positive Sentiment: ESCO Technologies posted Q2 fiscal 2026 EPS of $1.91, topping analyst estimates, while revenue rose 33.5% year over year to $309.3 million and also slightly beat expectations. Article: ESCO Technologies (ESE) Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company lifted full-year FY 2026 EPS guidance to $8.00-$8.25 and Q3 EPS guidance to $2.05-$2.15, signaling management’s confidence in continued performance. Article: ESCO Reports Second Quarter Fiscal 2026 Results
• Neutral Sentiment: The board declared a quarterly dividend of $0.08 per share, though the yield remains very small at about 0.1%, so this is unlikely to be a major stock driver.
• Neutral Sentiment: Additional earnings-snapshot coverage highlighted the same results, reinforcing the market’s focus on the beat-and-raise message. Article: Esco Technologies: Fiscal Q2 Earnings Snapshot

Hedge Funds Weigh In On ESCO Technologies

A number of institutional investors have recently made changes to their positions in the stock. Virtu Financial LLC acquired a new position in shares of ESCO Technologies in the fourth quarter worth $586,000. Invesco Ltd. raised its holdings in shares of ESCO Technologies by 17.8% in the fourth quarter. Invesco Ltd. now owns 1,050,093 shares of the scientific and technical instruments company’s stock worth $205,178,000 after acquiring an additional 158,949 shares during the last quarter. First Citizens Bank & Trust Co. raised its holdings in shares of ESCO Technologies by 1.3% in the fourth quarter. First Citizens Bank & Trust Co. now owns 3,397 shares of the scientific and technical instruments company’s stock worth $664,000 after acquiring an additional 42 shares during the last quarter. State of Tennessee Department of Treasury raised its holdings in shares of ESCO Technologies by 7.6% in the fourth quarter. State of Tennessee Department of Treasury now owns 11,854 shares of the scientific and technical instruments company’s stock worth $2,316,000 after acquiring an additional 836 shares during the last quarter. Finally, NewEdge Advisors LLC raised its holdings in shares of ESCO Technologies by 59.3% in the fourth quarter. NewEdge Advisors LLC now owns 3,115 shares of the scientific and technical instruments company’s stock worth $609,000 after acquiring an additional 1,160 shares during the last quarter. 95.70% of the stock is owned by institutional investors and hedge funds.

About ESCO Technologies

ESCO Technologies Inc is a diversified manufacturer of engineered products and systems designed to meet customers’ critical performance requirements in the test, measurement, control, and filtration of data, fluids, and gases. The company serves a wide range of end markets, including commercial aerospace, defense, industrial, medical, and communication network sectors. ESCO’s solutions are tailored to environments where reliability, precision and regulatory compliance are paramount.

Operating through multiple business segments, ESCO Technologies delivers test and measurement instruments such as RF and microwave components, signal distribution systems, and integrated test enclosures that support defense and aerospace programs.