Ecolab (NYSE:ECL) Announces Quarterly Earnings Results

Ecolab (NYSE:ECL) issued its quarterly earnings data on Tuesday. The basic materials company reported $2.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.08 by $0.01, FiscalAI reports. The firm had revenue of $4.42 billion during the quarter, compared to the consensus estimate of $4.39 billion. Ecolab had a return on equity of 22.72% and a net margin of 12.57%.The business’s revenue for the quarter was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.89 EPS. Ecolab updated its Q3 2026 guidance to 2.130-2.230 EPS.

Here are the key takeaways from Ecolab’s conference call:

• Strong second-quarter execution: Adjusted EPS increased 11% on 5% organic sales growth, 4% pricing, stable organic gross margin, and continued productivity gains. Volumes grew 1% despite an estimated 1% headwind from Middle East-related customer disruptions.
• Outlook raised for 2026: Ecolab now expects adjusted EPS of $8.05–$8.25, representing 7%–10% growth, with second-half organic sales growth projected at 6%–7% and adjusted operating margins of about 19%. Pricing is expected to reach the targeted 5%–6% range in the second half.
• Global High-Tech momentum accelerated: The segment grew 29% amid strong demand from data centers, microelectronics, and AI infrastructure. Following the CoolIT acquisition, Ecolab raised its long-term Global High-Tech targets to more than 25% annual growth, $4 billion in sales by 2030, and a 25% operating margin.
• Life Sciences and digital businesses continued to scale: Life Sciences growth accelerated to 15%, supported by bioprocessing share gains and expanded capacity, while Ecolab Digital grew 27% through adoption of connected and subscription-based solutions. Management said both businesses remain important long-term growth and margin drivers.
• CoolIT acquisition will create near-term financial pressure: Non-cash amortization and financing costs from the acquisition are expected to weigh on 2026 EPS, while reported Life Sciences margins are projected to decline from the second-quarter spike. Management nevertheless reaffirmed its goal of reaching a 20% operating margin in 2027.

Ecolab Trading Down 1.8%

Shares of ECL traded down $5.10 on Thursday, reaching $278.60. 71,716 shares of the company’s stock were exchanged, compared to its average volume of 1,488,530. The business has a 50 day moving average price of $268.51 and a two-hundred day moving average price of $273.38. Ecolab has a 12 month low of $243.15 and a 12 month high of $309.27. The stock has a market capitalization of $78.41 billion, a P/E ratio of 37.41, a price-to-earnings-growth ratio of 2.47 and a beta of 0.89. The company has a current ratio of 1.84, a quick ratio of 0.73 and a debt-to-equity ratio of 1.18.

Ecolab Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 16th were paid a dividend of $0.73 per share. This represents a $2.92 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Tuesday, June 16th. Ecolab’s payout ratio is 39.51%.

Analysts Set New Price Targets

A number of analysts have recently weighed in on ECL shares. UBS Group restated a “buy” rating and issued a $342.00 target price on shares of Ecolab in a research note on Wednesday. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Ecolab from $325.00 to $335.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Robert W. Baird set a $305.00 price objective on shares of Ecolab in a research report on Wednesday. Zacks Research downgraded shares of Ecolab from a “hold” rating to a “strong sell” rating in a research note on Monday, July 20th. Finally, Wells Fargo & Company upped their target price on shares of Ecolab from $260.00 to $275.00 and gave the stock an “equal weight” rating in a research report on Wednesday, June 10th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Ecolab has an average rating of “Moderate Buy” and an average price target of $326.44.

Insider Transactions at Ecolab

In related news, EVP Benjamin M. Clark acquired 1,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The stock was acquired at an average cost of $263.83 per share, with a total value of $263,830.00. Following the completion of the purchase, the executive vice president directly owned 1,083 shares in the company, valued at approximately $285,727.89. This trade represents a 1,204.82% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Darrell R. Brown sold 10,000 shares of the company’s stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $260.89, for a total value of $2,608,900.00. Following the completion of the sale, the chief operating officer owned 32,733 shares of the company’s stock, valued at $8,539,712.37. This represents a 23.40% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders purchased 10,550 shares of company stock valued at $2,719,508. 0.50% of the stock is currently owned by company insiders.

Institutional Trading of Ecolab

Hedge funds have recently modified their holdings of the company. Brighton Jones LLC raised its holdings in Ecolab by 164.7% in the fourth quarter. Brighton Jones LLC now owns 3,700 shares of the basic materials company’s stock worth $867,000 after purchasing an additional 2,302 shares during the period. Sivia Capital Partners LLC increased its position in shares of Ecolab by 39.8% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,384 shares of the basic materials company’s stock valued at $373,000 after buying an additional 394 shares in the last quarter. Schnieders Capital Management LLC. raised its stake in Ecolab by 22.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 1,166 shares of the basic materials company’s stock worth $314,000 after buying an additional 217 shares during the period. NewEdge Advisors LLC raised its stake in Ecolab by 0.8% during the 2nd quarter. NewEdge Advisors LLC now owns 21,096 shares of the basic materials company’s stock worth $5,684,000 after buying an additional 171 shares during the period. Finally, CIBC Asset Management Inc lifted its holdings in Ecolab by 49.4% during the second quarter. CIBC Asset Management Inc now owns 58,421 shares of the basic materials company’s stock worth $15,741,000 after acquiring an additional 19,324 shares in the last quarter. 74.91% of the stock is currently owned by institutional investors and hedge funds.

Ecolab Company Profile

Ecolab, Inc is a global provider of water, hygiene and infection prevention solutions and services. The company develops and supplies cleaning and sanitizing chemicals, dispensing equipment, water-treatment systems, pest elimination services and related technologies designed to help businesses maintain clean, safe and efficient operations. Its offerings span both products and onsite services, often paired with technical support and training.

Ecolab serves a broad range of end markets including hospitality and foodservice, food and beverage processing, healthcare, manufacturing and industrial operations, and energy and utilities.