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Ingersoll Rand
(NYSE:IR)
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Rating:70Outperform
Price Target:
$93.00
â–²(10.19% Upside)
Action:Upgraded
Date:07/31/26
IR’s score is driven primarily by solid financial performance—especially strong and consistent free cash flow—and a constructive price trend with shares above key moving averages. The earnings call supports the outlook via reaffirmed guidance, strong liquidity, and expected back-half margin expansion, but near-term ITS margin pressure and order/tariff headwinds temper confidence. Valuation remains a notable constraint given the high P/E multiple, making execution on margin recovery and guidance critical.
Positive Factors
Strong free cash flow generation
Consistently high free cash flow (~$1.27B TTM) and near‑10% FCF growth provide durable internal funding for capex, dividends, and M&A. High FCF relative to net income (~0.89–0.92x) supports long‑term reinvestment and cushions cyclical industrial demand swings.
Negative Factors
Persistent ITS margin pressure
Sustained margin compression in ITS signals structural pressures—volume flow‑through issues, tariffs and commercial investments—that could depress consolidated profitability until addressed via pricing, cost actions, or mix shift. Multi‑quarter weakness raises execution risk for margin guidance.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistently high free cash flow (~$1.27B TTM) and near‑10% FCF growth provide durable internal funding for capex, dividends, and M&A. High FCF relative to net income (~0.89–0.92x) supports long‑term reinvestment and cushions cyclical industrial demand swings.
Read all positive factors
Ingersoll Rand Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much each business unit contributes to total sales, indicating which segments are growing and which may need strategic adjustments.
Shows how much each business unit contributes to total sales, indicating which segments are growing and which may need strategic adjustments.
Data provided by:
The Fly
The FlyIngersoll Rand (IR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.00B
Dividend Yield0.1%
Average Volume (3M)4.23M
Price to Earnings (P/E)34.0
Beta (1Y)1.11
Revenue Growth7.85%
EPS Growth88.74%
CountryUS
Employees21,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.45
Shares Outstanding391,336,820
10 Day Avg. Volume4,500,918
30 Day Avg. Volume4,227,116
Financial Highlights & Ratios
PEG Ratio-1.82
Price to Book (P/B)3.13
Price to Sales (P/S)4.12
P/FCF Ratio25.85
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$90.20Price Target Upside6.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)3.51
Revenue Forecast (FY)$7.94B
Ingersoll Rand Business Overview & Revenue Model
Company Description
Ingersoll Rand Inc., established in 1859 and headquartered in Davidson, North Carolina, delivers essential air, fluid, energy, medical, and specialized vehicle technologies to customers across the United States, Europe, the Middle East, Africa, an...
How the Company Makes Money
Ingersoll Rand makes money primarily by selling engineered industrial equipment and by monetizing the long-life installed base of that equipment through recurring aftermarket revenue. Its revenue model has two major components: (1) equipment sales...
Ingersoll Rand Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a generally constructive tone: solid top-line growth (+8% revenue) and EPS growth (+7%), strong PST results (orders +6%, EBITDA +15%, +120 bps margin) and healthy cash generation and liquidity underpin confidence. Management reiterated full-year guidance and highlighted a robust M&A funnel and strategic wins (Life Sciences, carbon capture), while acknowledging meaningful near-term headwinds: ITS margin pressure, tariff and materials-related dilution, and a ~$40M delay in long-cycle orders from the Middle East (partially recovered). Management expects tariff impacts to be mitigated over the year and margin expansion to be back-end weighted. Overall, the positives — revenue/EPS growth, PST outperformance, strong FCF and balance sheet, and disciplined capital allocation — outweigh transitory operational and margin challenges, though risks remain in ITS and tariffs in the near term.Positive Updates
Revenue and EPS Growth
Total revenue grew 8% year-over-year in Q1 2026 and adjusted EPS was $0.77, up 7% year-over-year, reflecting a solid start to the year and execution against expectations.
Negative Updates
ITS Margin Pressure
ITS adjusted EBITDA margin declined to 26.7% in Q1 and has been down year-over-year for five consecutive quarters; YoY margin pressure driven by flow-through on organic volume declines, tariff impacts and strategic commercial investments.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and EPS Growth
Total revenue grew 8% year-over-year in Q1 2026 and adjusted EPS was $0.77, up 7% year-over-year, reflecting a solid start to the year and execution against expectations.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 guidance: total revenue growth of 2.5%–4.5% (organic ~1% at the midpoint; ~2% from M&A, including an expected 400–500 bps of annualized inorganic revenue in 2026; FX benefit ~0.5%), total adjusted EBITDA $2.13–$2.19 billion, corporate costs $170 million (evenly run‑rate), adjusted EPS $3.45–$3.57 (~5% growth at the midpoint), adjusted tax rate ~23%, net interest ~ $230 million, share count ~394 million, and free cash‑flow to adjusted net‑income conversion ~95%; management expects first‑half adjusted EBITDA to be ~45.5%–46% of the year with Q2 organic sales flattish to slightly up and Q2 margins modestly down ~50–100 bps y/y (ITS pressure) before back‑half margin expansion, sees no net tariff/inflation hit to the full‑year guide, and highlights ~$4 billion of liquidity and leverage well below 2x to support the plan.Ingersoll Rand Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.94B | 7.65B | 7.24B | 6.88B | 5.92B | 5.15B |
| Gross Profit | 3.01B | 2.95B | 3.17B | 2.88B | 2.33B | 1.99B |
| EBITDA | 1.97B | 1.57B | 1.83B | 1.65B | 1.28B | 1.02B |
| Net Income | 959.10M | 581.40M | 838.60M | 778.70M | 604.70M | 562.50M |
Balance Sheet | ||||||
| Total Assets | 18.19B | 18.30B | 18.01B | 15.56B | 14.77B | 15.15B |
| Cash, Cash Equivalents and Short-Term Investments | 1.17B | 1.25B | 1.54B | 1.60B | 1.61B | 2.11B |
| Total Debt | 4.77B | 4.85B | 4.98B | 2.77B | 2.79B | 3.48B |
| Total Liabilities | 7.95B | 8.14B | 7.76B | 5.72B | 5.51B | 6.08B |
| Stockholders Equity | 10.18B | 10.09B | 10.18B | 9.78B | 9.20B | 9.00B |
Cash Flow | ||||||
| Free Cash Flow | 1.22B | 1.22B | 1.25B | 1.27B | 765.70M | 551.40M |
| Operating Cash Flow | 1.35B | 1.36B | 1.40B | 1.38B | 860.30M | 615.50M |
| Investing Cash Flow | -601.50M | -660.60M | -3.11B | -1.06B | -332.90M | 914.30M |
| Financing Cash Flow | -874.80M | -1.05B | 1.71B | -337.50M | -954.00M | -1.16B |
Ingersoll Rand Technical Analysis
Positive
84.40
Price Trends
77.63
Positive
79.05
Positive
81.49
Positive
Market Momentum
1.74
Negative
62.46
Neutral
83.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IR, the sentiment is Positive. The current price of 84.4 is above the 20-day moving average (MA) of 81.62, above the 50-day MA of 77.63, and above the 200-day MA of 81.49, indicating a bullish trend. The MACD of 1.74 indicates Negative momentum. The RSI at 62.46 is Neutral, neither overbought nor oversold. The STOCH value of 83.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IR.
Ingersoll Rand Risk Analysis
Ingersoll Rand disclosed 31 risk factors in its most recent earnings report. Ingersoll Rand reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ingersoll Rand Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $52.41B | 49.70 | 30.25% | 1.18% | 10.45% | 21.30% | |
76 Outperform | $55.01B | 36.40 | 14.39% | 0.54% | 9.52% | 8.37% | |
70 Outperform | $33.00B | 34.03 | 5.80% | 0.09% | 7.85% | 88.74% | |
68 Neutral | $13.49B | 47.51 | 4.23% | 0.66% | 1.54% | 22.59% | |
67 Neutral | $27.48B | 24.51 | 15.00% | 1.03% | 7.56% | -49.98% | |
64 Neutral | $10.56B | 16.32 | 17.13% | 1.69% | -2.15% | 8.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
IR
Ingersoll Rand
83.38
4.86
6.19%
AME
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241.71
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31.84%
DOV
Dover
204.62
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17.41%
PNR
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65.44
-35.53
-35.19%
RRX
Regal Rexnord
205.23
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40.31%
ROK
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480.08
134.81
39.04%
Ingersoll Rand Corporate Events
Business Operations and StrategyShareholder Meetings
Ingersoll Rand Shareholders Back Board and Governance Direction
Positive
Jun 16, 2026
On June 11, 2026, Ingersoll Rand Inc. held its annual meeting of stockholders, with approximately 95.3% of eligible shares represented in person or by proxy, reflecting strong shareholder engagement. Stockholders elected the full slate of director...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.