Ecolab Inc. (ECL Quick QuoteECL - Free Report) has reported first-quarter 2026 adjusted earnings per share (EPS) of $1.70, up 13.3% year over year. The metric was in line with the Zacks Consensus Estimate.

GAAP EPS for the quarter was $1.52, up 7.8% year over year.

Shares of Ecolab gained nearly 0.9% in today’s pre-market trading.

ECL’s Revenue Details

Revenues grossed $4.07 billion in the reported quarter, up 10% year over year. The metric topped the Zacks Consensus Estimate by 1.1%.

Ecolab’s organic sales were $3.96 billion, up 3.5% from the prior-year period.

Ecolab Digital sales increased 24% to $99 million, with double-digit growth across both software and enabling hardware subscriptions.

Ecolab’s Segmental Analysis

The Global Water segment’s fixed currency sales of $2.04 billion marked 7.1% year-over-year growth, driven by a 5% benefit from the Ovivo Electronics acquisition and organic sales growth. Organic sales were $1.94 billion, up 2.1% year over year.

The segment’s performance was driven by more than 20% organic growth in Global High-Tech, reflecting robust growth across both microelectronics and data centers. Food & Beverage continued to grow mid-single digits, driven by attractive new business wins from the One Ecolab growth strategy. Light Water delivered steady performance, driven by solid gains in transportation. These, driven by good new business wins, stabilized the headwind from softer sales in Heavy Water and Paper.

The Global Institutional & Specialty arm’s fixed currency and organic sales were $1.51 billion, a year-over-year uptick of 3.6% both on a reported and organic basis. Institutional unit’s improved performance was driven by good growth with hospitality customers. Specialty unit’s sales grew high-single digits, with accelerated growth driven by robust new business wins and continued value pricing.

The Global Pest Elimination segment’s fixed currency sales of $310.1 million improved 7.9% year over year on a reported basis. This reflected strong organic growth and a 1% benefit from attractive, targeted acquisitions in North America. Organic sales were $308.5 million, up 7.3% year over year. Strong organic sales growth was led by robust gains in restaurants, food retail, food & beverage and healthcare, which continue to benefit from the One Ecolab growth strategy.

The Global Life Sciences arm’s fixed currency sales and organic sales were $200.9 million each, reflecting year-over-year growth of 10.7% on both a reported and organic basis. Per management, year-over-year fixed currency and organic sales growth was driven by bioprocessing, which more than doubled its sales during the quarter. This, along with robust growth in pharmaceutical & personal care, overcame temporary capacity constraints within Life Sciences’ industrial water purification business.

ECL’s Margin Analysis

In the quarter under review, Ecolab’s gross profit improved 8.3% year over year to $1.77 billion. However, the gross margin contracted 69 basis points (bps) to 43.6%.

Selling, general and administrative expenses increased 4.9% year over year to $1.10 billion.

Adjusted operating profit totaled $668.4 million, increasing 14.3% from the prior-year quarter. The adjusted operating margin in the quarter expanded 61 bps to 16.4%.

Ecolab’s Financial Position

The company exited first-quarter 2026 with cash and cash equivalents of $519.8 million compared with $646.2 million at the end of fourth-quarter 2025. Total debt at the end of first-quarter 2026 was $8.49 billion compared with $8.24 billion at the end of the fourth quarter of 2025.

Meanwhile, Ecolab has a consistent dividend-paying history, with five-year annualized dividend growth of 8.75%.

ECL’s Guidance

Ecolab has provided its outlook for the second quarter of 2026 and has revised the 2026 guidance.

The company expects an adjusted EPS of $2.02 to $2.12 for the second quarter, suggesting an 7%-12% increase from the year-ago period’s actual. The Zacks Consensus Estimate is pegged at $2.13.

Including the acquisition of Ovivo Electronics, ECL now expects reported sales to increase 9%-11% and organic sales to rise 6%-7% compared with the prior outlook of 7%-9% and 3%-4% uptick, respectively, in 2026.

For 2026, Ecolab continues to expect an adjusted EPS of $8.43-$8.63 (indicating an uptick of 12%-15% from the comparable 2025 period’s reported number). The Zacks Consensus Estimate for adjusted EPS is pegged at $8.45.

Our Take on Ecolab

ECL exited the first quarter of 2026 with in-line earnings and better-than-expected revenues. The company registered a robust year-over-year uptick in its top and bottom lines, along with solid performances across all segments. The expansion of the adjusted operating margin bodes well for the stock.

Per management, Ecolab’s performance in the reported quarter was driven by strong value pricing, accelerated volume growth and improved productivity, demonstrating the strength of its technology- and service-led model. Its core businesses also delivered strong performance as Institutional and Specialty both improved, and Food & Beverage continued to significantly outperform market trends. These looked promising for the stock.

However, the ongoing soft market demand in Ecolab’s Heavy Water and Paper was disappointing. The contraction of the gross margin does not bode well for the stock.

ECL’s Zacks Rank & Key Picks

Ecolab currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space that are expected to report earnings soon are DexCom, Inc. (DXCM Quick QuoteDXCM - Free Report) , Encompass Health Corporation (EHC Quick QuoteEHC - Free Report) and The Cooper Companies, Inc. (COO Quick QuoteCOO - Free Report) .

The Zacks Consensus Estimate for DexCom’s first-quarter 2026 adjusted EPS is currently pegged at 47 cents. The consensus estimate for revenues is pegged at $1.18 billion. DXCM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DexCom has an estimated long-term growth rate of 20.6%. DXCM’s earnings yield of 4.1% compares favorably with the industry’s negative yield.

Encompass Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter 2026 adjusted EPS is currently pegged at $1.51. The same for revenues is pegged at $1.57 billion.

Encompass Health has an estimated long-term growth rate of 8.8%. EHC’s earnings yield of 5.9% compares favorably with the industry’s 5.6%.

Cooper Companies currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2026 adjusted EPS is currently pegged at $1.10. The same for its revenues is pegged at $1.05 billion.

Cooper Companies has an estimated long-term growth rate of 8.4%. COO’s earnings yield of 7.2% compares favorably with the industry’s 6.1%.