Applied Industrial Technologies edges up on earnings guidance for 2026

[Driving industrial roller chain and sprockets on a white background.]
takayib/iStock via Getty Images

Shares of Applied Industrial Technologies (NYSE:AIT [https://seekingalpha.com/symbol/AIT]) rose 1.1% in the first hour of trading, reversing a premarket decline Thursday after the industrial distributor reported [https://seekingalpha.com/news/4485221-applied-industrial-technologies-beats-top-line-and-bottom-line-estimates-initiates-fy26-outlook] quarterly results that beat Wall Street forecasts and rolled out its fiscal 2026 guidance.

The company posted fiscal fourth-quarter net income of $107.8 million, or $2.80 a share, up 5.9% from a year earlier and above analysts’ expectations of $2.63 per share.

Quarterly sales rose 5.5% to $1.20 billion, exceeding the $1.18 billion consensus estimate. Organic daily sales inched up 0.2%, with a 1.8% gain in the engineered solutions segment offsetting a 0.4% decline in service center sales.

For the full fiscal year, net income climbed 3.8% to $393 million, or $10.12 a share, on sales of $4.6 billion, up 1.9%. Organic daily sales fell 2.3% year over year.

Chief Executive Neil Schrimsher in a statement said the quarter ended on a strong note, with “underlying trends improving as the quarter progressed” and record free cash flow for the year supporting capital deployment. M&A activity, including progress at Hydradyne, contributed to growth, while service center performance held steady in a muted market backdrop.

Applied (NYSE:AIT [https://seekingalpha.com/symbol/AIT]) introduced fiscal 2026 earnings guidance of $10.00 to $10.75 a share, with sales expected to grow 4% to 7% from 2025 levels, including 1% to 4% organic growth. Analysts on average expect the company to report earnings of $10.65 a share for the year.

The company’s outlook assumes continued economic, trade and interest rate uncertainty in the first half of the fiscal year, along with modest pricing contributions, inflationary headwinds and planned growth investments.

Schrimsher said the company is “highly focused on accelerating growth” while taking a prudent approach to its initial forecast given macro headwinds. He noted that early first-quarter trends are encouraging, with organic sales up an estimated 4% year over year to date.

MORE ON APPLIED INDUSTRIAL TECHNOLOGIES

* Applied Industrial Technologies: Which Direction Will The Stock Go? [https://seekingalpha.com/article/4799627-applied-industrial-technologies-which-direction-will-the-stock-go]
* Applied Industrial Technologies: Well Positioned To Capitalize On Automation In U.S. Manufacturing [https://seekingalpha.com/article/4790060-applied-industrial-technologies-well-positioned-capitalize-automation-us-manufacturing]
* Applied Industrial Technologies beats top-line and bottom-line estimates; initiates FY26 outlook [https://seekingalpha.com/news/4485221-applied-industrial-technologies-beats-top-line-and-bottom-line-estimates-initiates-fy26-outlook]
* Applied Industrial Technologies Q4 2025 Earnings Preview [https://seekingalpha.com/news/4484854-applied-industrial-technologies-q4-2025-earnings-preview]
* Seeking Alpha’s Quant Rating on Applied Industrial Technologies [https://seekingalpha.com/symbol/AIT/ratings/quant-ratings]