Air Products & Chemicals Inc (NYSE:APD), a leading company in the industrial gases sector, announced its first-quarter fiscal 2026 financial results on Friday, delivering figures that surpassed market expectations. The company posted revenues of $3.103 billion, marking a 6% increase compared to the $2.932 billion reported in the same quarter a year earlier. This figure also exceeded analyst forecasts, which had projected revenues of approximately $3.051 billion.
In terms of profitability, Air Products achieved an adjusted earnings per share (EPS) of $3.16 for the quarter, reflecting a 10% rise year over year. This result not only topped market analyst estimates, which averaged $3.04, but also surpassed the upper end of the company’s own guidance, signaling a strong operational performance despite headwinds.
CEO Eduardo Menezes commented on the quarter’s outcomes, emphasizing the solid foundational business performance. He stated, “We had strong results from the base business, with a 10% increase in adjusted EPS compared to the prior year period, and also posted a 12% improvement in adjusted operating income despite helium headwinds in the quarter.” Menezes further noted that Air Products is prioritizing unlocking growth in earnings, optimizing large-scale projects, and practicing disciplined capital management as key elements of its ongoing strategic efforts.
Looking forward, Air Products reaffirmed its adjusted EPS guidance for the full fiscal year 2026, expecting a range between $12.85 and $13.15 per share. This outlook aligns closely with the consensus analyst estimate of $12.96. Additionally, the company said it continues to forecast capital expenditures of approximately $4.0 billion for the fiscal year, highlighting the substantial investments planned in operations. For the second quarter, Air Products anticipates adjusted EPS to fall between $2.95 and $3.10, a range that brackets analyst expectations, which stand near $3.02.
Following the company’s earnings announcement, Air Products’ stock price exhibited moderate upward momentum, rising by 0.7% and reaching $274.40 in Monday’s trading session.
Equity analysts responded to the financial release by adjusting their price targets upward, while maintaining their respective neutral-to-equal-weight stances on the stock. Jeffrey Zekauskas of JP Morgan maintained a Neutral rating but increased his price target from $260 to $280, reflecting improved confidence in the company’s earnings prospects given the latest results. Similarly, Michael Sison of Wells Fargo upheld an Equal-Weight rating and raised his price target from $250 to $270, suggesting a more optimistic valuation while not altering his overall view on the stock’s investment profile.
These revised projections indicate cautious optimism within investor circles, recognizing Air Products’ ability to meet and exceed its near-term financial goals amidst sector-specific challenges such as helium market dynamics. The company's steadfast commitment to capital discipline coupled with growth optimization strategies continues to be a focal point for investors and analysts alike.
As Air Products navigates through fiscal 2026, market participants will closely monitor the execution of its large projects and capital management initiatives, which are critical to sustaining the earnings momentum reported in the first quarter.