Trane Technologies (TT) Q3 2026 Earnings
Adjusted continuing EPS excludes $20.7 million of pre-tax adjustments ($14.6 million after tax, $0.07 per share). These consist of $16.3 million amortization of acquired backlog intangible asset, $3.6 million restructuring costs and $0.8 million M&A transaction costs. GAAP continuing EPS was $4.79.
How Did TT Stock React to Q3 2026 Earnings?
Did TT Beat Earnings? Q3 2026 Results
Yes. Trane Technologies reported Q3 2026 earnings of $4.86 a share on Oct 29, 2026, beating the $4.73 consensus estimate by 2.7%. Revenue was $6.8B against a $6.5B estimate.
Trane Technologies delivered a strong third quarter, posting adjusted EPS of $4.86 and extending its streak of beating consensus EPS estimates to six consecutive quarters, this time clearing the $4.73 Wall Street forecast by 2.68%. Revenue of $6.76 billion grew 17.7% year over year and topped estimates by 4.06%, driven primarily by the Americas segment, where organic revenue surged 19% on broad strength across Commercial HVAC, Residential, and Transport. The demand picture was arguably even more compelling than the reported results, with organic bookings rising 20% and backlog climbing to $12.50 billion, up 73%, signaling a long runway of future revenue that sets Trane apart from peers facing more immediate margin pressures. That backdrop contrasts sharply with competitors who have leaned on aggressive pricing strategies only to see profitability suffer. Cash generation remained robust, with nine-month free cash flow of $2.83 billion. Looking ahead, management raised its full-year 2026 revenue growth outlook to approximately 13.5% reported and 11% organic, while reaffirming adjusted EPS guidance of $15.20 to $15.30, even as supply chain and inflationary headwinds persist.
- Organic bookings up 20%, with broad-based growth across all segments; total bookings of $7,248 million, up 21%
- Book-to-bill of 107%, above 100% in all segments
- Backlog of $12.5 billion, up 73%; Americas Commercial HVAC backlog up approximately 80%
- Americas bookings of $5.7 billion, up 18% (organic up 16%), with strength in Commercial HVAC, Residential and Transport
- Americas organic revenue up 19%; acquisitions contributed about 2 points; adjusted operating margin up 50 bps to 22.3%
- EMEA bookings up 40% (organic up 41%), book-to-bill of 147%
- Asia Pacific bookings up 22% (organic up 21%), book-to-bill of 128%
- Effective tax rate of 17.1% vs. 21.2% in Q3 2025
- Working capital/revenue improved to 0.3% from 3.9%
- Year-to-date free cash flow of $2.8 billion, up approximately 60%
“We delivered strong performance in the third quarter, including organic revenue growth of 16 percent, record operating income and earnings-per-share growth of 25 percent.”
Trane Technologies CEO, on the earnings call
What Is Trane Technologies's Outlook?
Trane raised its full-year 2026 revenue guidance. It now expects reported revenue growth of approximately 13.5 percent and organic revenue growth of approximately 11 percent versus full-year 2025. It reaffirmed EPS guidance: - GAAP continuing EPS of approximately $15.00 to $15.10, including $0.20 of non-GAAP adjustments - Adjusted continuing EPS of $15.20 to $15.30 Management cited supply chain and inflationary headwinds. The company expects to pay a competitive and growing dividend and to deploy 100 percent of excess cash to shareholders over time.
TT YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $6.8B | $5.7B | +17.7% |
| Operating Income | $1.3B | $1.2B | +15.3% |
| Net Income | $1.0B | $847.6M | +23.7% |
TT Revenue by Segment
TT Revenue by Geography
When Does Trane Technologies Report Next?
Figures from SEC filings and company reports. Not investment advice.