Itt Inc. (ITT) · Nov 4, 2026 · Earnings
Beat — Adjusted EPS $2.26 vs ~$2.08 consensus
ITT earnings beat expectations in Q3, with SPX FLOW driving growth and management raising its 2026 revenue, EPS and cash outlook.
ITT is in the early execution phase of its large SPX FLOW integration, using the acquisition to expand its flow-equipment portfolio while its legacy businesses benefit from aerospace, defense, connectors, pumps and valves demand. ITT closed the SPX FLOW acquisition on March 2, 2026, and had already raised its full-year outlook in August as the deal began contributing.
The quarter beat the market’s operating bar. Adjusted EPS was $2.26 versus published consensus of roughly $2.08, while revenue was $1.441 billion versus approximately $1.42 billion expected. The result was not just acquisition arithmetic: organic revenue grew 7.6%, adjusted operating income rose 54.8%, and free cash flow nearly doubled year over year. The filing says, “Adjusted EPS increased 20% to $2.26,” reflecting segment execution and SPX FLOW contributions. 〔0〕
| Figure | Q3 2026 | Q3 2025 | Consensus / prior guidance |
|---|---|---|---|
| Revenue (Financial Highlights) | $1,440.6M (+44.2%) | $999.1M | ~$1.42B |
| Adjusted EPS (EPS reconciliation) | $2.26 (+19.6%) | $1.89 | ~$2.08 |
| Reported EPS (EPS reconciliation) | $1.38 (-14.8%) | $1.62 | |
| Adjusted operating margin (Financial Highlights) | 21.0% (+140 bps) | 19.6% | |
| Free cash flow (Financial Highlights) | $288.4M (+87.0%) | $154.2M | |
| FY adjusted EPS guidance (Guidance) | $8.54–$8.62 | $8.12–$8.32 prior |
The more important signal is the second guidance increase. ITT lifted its full-year organic growth outlook to 7%–9% from the prior 5%–8% range, raised total growth to 41%–43% from 38%–41%, and increased adjusted EPS guidance to $8.54–$8.62 from $8.12–$8.32. It also raised free cash flow guidance to $600 million–$620 million from $550 million–$580 million. The filing attributes the change to commercial and operational performance year to date. 〔1〕
SPX FLOW is beginning to look like an operating contributor, not merely a consolidation boost. The acquisition supplied 35 percentage points of reported revenue growth, but the legacy portfolio still produced 7.6% organic growth overall. Connect & Control Technologies grew organically 18.6% with a 270-basis-point operating-margin improvement, while Flow Technologies delivered 6.0% organic growth; its reported margin remains depressed by acquisition amortization and integration effects. Management says SPX FLOW is delivering high-single-digit growth and capturing cost synergies ahead of schedule. 〔2〕
The headline earnings quality is better on an adjusted basis, but GAAP earnings and leverage remain the integration cost. Reported EPS fell 14.8% because intangible amortization, acquisition-related costs and higher interest expense rose sharply after the transaction. Cash fell to $558.1 million from $1.743 billion at year-end, while debt increased materially as ITT funded the acquisition; that is the main constraint behind the otherwise strong operating quarter. The filing says revenue growth was “partially offset by acquisition-related costs,” and nine-month investing cash flow included $3.569 billion of acquisitions.
Bottom line: This is a clearly stronger-than-expected quarter that advances ITT’s post-SPX FLOW story: the deal is contributing growth, margins and cash, and management raised the outlook again. The remaining question is how quickly the acquisition-related amortization, interest burden and Flow Technologies margin drag fade—not whether the integration has started producing operating benefits.
November 5 earnings call on SPX FLOW synergies
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