Pentair reported Q2 2026 results slightly better than prior pre-announcement, but its Pool segment experienced a significant channel destocking and sales decline. The company announced the $1.4B acquisition of TACO to strengthen its water solutions and diversify into high-growth HVAC and data center markets, while reaffirming its full-year EPS guidance and setting up a potential robust recovery in 2027. Q2 2026 sales declined 17% YoY, driven by a $170M pool channel inventory destocking; total revenue was $933M with adjusted EPS of $1.14.
Pentair reported Q2 2026 results slightly better than prior pre-announcement, but its Pool segment experienced a significant channel destocking and sales decline. The company announced the $1.4B acquisition of TACO to strengthen its water solutions and diversify into high-growth HVAC and data center markets, while reaffirming its full-year EPS guidance and setting up a potential robust recovery in 2027. Q2 2026 sales declined 17% YoY, driven by a $170M pool channel inventory destocking; total revenue was $933M with adjusted EPS of $1.14.
Pentair reported Q2 2026 results slightly better than prior pre-announcement, but its Pool segment experienced a significant channel destocking and sales decline. The company announced the $1.4B acquisition of TACO to strengthen its water solutions and diversify into…
Q2 2026 sales declined 17% YoY, driven by a $170M pool channel inventory destocking; total revenue was $933M with adjusted EPS of $1.14.
Flow and Water Solutions segments performed well, delivering record return on sales and offsetting pool weakness, with tariff refunds providing a $35M benefit.
Guidance tone
AI is discussed only as a demand driver for data centers, which represent approximately 15% of TACO's commercial and industrial revenue, supported by the AI revolution.
Guidance for the rest of 2026 is maintained, but the pool segment is experiencing a significant inventory destocking and a temporary margin reset. Management is providing a path to robust growth in 2027 as inventories are right-sized and new growth initiatives are implemented.
Management acknowledges near-term pool challenges and the need to realign, but remains confident in long-term growth and the TACO acquisition.
“The inventory is really a doubling up of any inventory that was in the channel, and it comes out at a 2x factor to how it went in”
“The answer, Dean, is yes. It's not 80-20 as a tool. It's the way you implement 80-20.”
“Data centers represent approximately 15% of TACO's commercial and industrial revenue with a significant pipeline of opportunities expected to support accelerating growth.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 Q3 | $1.05–$1.08 | $1.06 | GUIDED |
| RevenuePOOL | FY2026 Q3 | -25%–-23% | -24% | GUIDED |
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2026 Q1 | EPS | FY2026 Q2 | $1.47–$1.50 | $1.14 | Missed |
| FY2025 Q4 | EPS | FY2026 Q1 | $1.15–$1.18 | $1.22 | Met / beat |