Ecolab (ECL) Q3 2026 earnings summary

Executive summary

• Q3 reported sales rose 13% to $4.695B; organic sales grew 7%, with volume up 2% and pricing up 5%.

• Adjusted operating income increased 14%; organic operating income grew 11%. Adjusted diluted EPS rose 5% to $2.18, including a ~10% CoolIT-related amortization and financing headwind.

• Growth engines accelerated, led by 63% organic growth in Global High-Tech; growth also strengthened in Life Sciences, Digital, and Pest.

• Integrated water, hygiene, pest, and digital offerings supported customer wins; One Ecolab generated over $400M in sales growth with its 35 largest customers.

Financial highlights

• Q3 net sales were $4,694.8M versus $4,165.0M; adjusted operating income was $893.4M, up 14%, and reported operating income was $810.5M, up 7%.

• Reported net income was $551.3M versus $585.0M; adjusted net income was $615.4M versus $590.7M.

• Reported diluted EPS was $1.95 versus $2.05; adjusted diluted EPS was $2.18 versus $2.07.

• Digital sales grew 34% to $129M, with growth in hardware subscriptions and software.

Outlook and guidance

• FY2026 adjusted diluted EPS guidance is $8.10–$8.20, growth of 8%–9%, including a ~6-point CoolIT-related headwind.

• Q4 reported sales growth is expected at 12%–14%, organic sales growth at 6%–7%, and adjusted diluted EPS at $2.13–$2.23, up 2%–7%.

• Q4 adjusted operating margin is expected at ~19% and organic operating margin at ~20%; CoolIT-related costs are expected to create a ~12-point EPS headwind.

• For 2027, organic sales growth is expected at the upper end of the 5%–7% target and adjusted operating income margin at 20%; underlying earnings growth is expected in the mid-teens, with transaction effects shifting from a 5-point H1 headwind to a 5-point H2 tailwind.

• 2027 top-line assumptions include 1%–2% pricing and volume growth; volume is expected to rise from 1%–2% in H1 to 2%–3% in H2 as pricing moderates.