Air Products (APD) Q4 2026: Revenue Beats by 6.6% as Management Guides 2027 EPS Growth
As seen on the 24/7 Wall St. homepage on November 5, 2026.
Management guided fiscal 2027 adjusted EPS to $14.15 to $14.50, growth of 5% to 8%, after cutting capital spending by $1.8 billion and exiting two China coal gasification plants. Revenue came in 6.6% above expectations, with adjusted earnings essentially meeting estimates.
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Air Products closed its fiscal fourth quarter of 2026 with quarterly revenue of $3.56 billion, running 6.6% above analyst expectations and 12% higher than the same period a year earlier. The top-line strength came from a combination of 9% higher volumes alongside gains from pricing, energy cost pass-through, and currency. Adjusted earnings per share of $3.61 landed essentially in line with the consensus estimate of $3.61.
The Americas segment was the standout, with revenue of $1.63 billion growing 27% year over year. That outperformance was driven in part by a significant asset sale tied to an early contract termination, as well as a new asset contribution. Asia and Europe grew more modestly at 4% and 8% respectively, while the Corporate and other segment declined 34% on lower sale-of-equipment activity.
The quarter carried a heavy GAAP charge: $224.5 million in pre-tax business and asset actions, primarily tied to two China coal gasification plants, pulled GAAP diluted EPS to $2.62. One of those plants was sold in October 2026. These exits are part of a broader strategic retrenchment from clean energy projects that also included a Louisiana clean energy complex and a Casa Grande, Arizona green hydrogen facility during the fiscal year. Full-year business and asset action charges for fiscal 2026 totaled roughly $3.2 billion pre-tax.
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On the fiscal year as a whole, adjusted EPS came in at $13.45 on revenue of nearly $13 billion, up about 8% year over year. Capital expenditures were cut by $1.8 billion to $3.3 billion in fiscal 2026, a signal of the company's shift toward capital discipline. CEO Eduardo Menezes noted that the company delivered 12% adjusted EPS growth and expanded its industrial gas project backlog through new business wins, including over $2 billion of new electronics wins.
Looking into fiscal 2027, management guided adjusted EPS to a range of $14.15 to $14.50, representing growth of 5% to 8% from fiscal 2026's $13.45. First-quarter fiscal 2027 adjusted EPS is expected in the range of $3.35 to $3.45, up 6% to 9% from the year-ago quarter's $3.16. Capital expenditures for the new fiscal year are targeted at $3.0 billion to $3.5 billion, suggesting spending stays disciplined even as management focuses on growing the industrial gas project backlog.