It has been about a month since the last earnings report for PPG Industries (PPG Quick QuotePPG - Free Report) . Shares have added about 7.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is PPG Industries due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for PPG Industries, Inc. before we dive into how investors and analysts have reacted as of late.

PPG’s Q1 Earnings Meet Estimates, Revenues Beat on Currency Gains

PPG Industries delivered adjusted earnings of $1.83 per share in the first quarter of 2026, up 6.4% year over year and in line with the Zacks Consensus Estimate.

Revenues came in at $3.93 billion, up 6.7% from the year-ago quarter and ahead of the consensus mark of $3.84 billion by 2.4%.

Results benefited from higher selling prices and a sizable foreign currency translation lift, while organic sales increased 1% year over year. The company is witnessing rising costs of raw materials, energy, logistics and packaging across the coatings value chain, making incremental selling price realization a priority as it works to offset rising input costs more quickly than in prior inflation cycles. The company also pointed to global sourcing flexibility and cost reduction efforts, including technology and AI-enabled optimization, as levers to help protect price-cost recovery.

Segment Review

Global Architectural Coatings’ net sales increased 12.6% year over year to $965 million. The figure beat our estimate of $885 million. Segment EBITDA margin expanded to 19.1% from 16.8%, reflecting higher selling prices and cost-control actions.

Management cited strength in Latin America and the Asia Pacific, led by Mexico. Retail sales were especially strong, and project-related sales continued to recover, while architectural coatings demand in EMEA remained mixed by country.

Performance Coatings sales rose 5.5% year over year to $1.33 billion. The figure topped our estimate of $1.27 billion. Segment EBITDA margin edged up to 24.4% from 24.3%, supported by higher selling prices, currency benefits and contributions from acquisitions.

Within the segment, aerospace delivered an exceptional performance with double-digit organic sales growth and ended the quarter with an order backlog of about $315 million. Protective and marine coatings also advanced, including continued above-market marine volume growth in the Asia Pacific, while automotive refinish declined sharply due to a difficult comparison tied to distributor ordering patterns in the first half of 2025.

Industrial Coatings' net sales increased 4.4% year over year to $1.63 billion, driven primarily by foreign currency translation. The figure beat our estimate of $1.55 billion. Segment EBITDA margin declined to 15% from 16.8% as regional mix and lower selling prices weighed on profitability.

Organic sales in the segment were flat, with a 1% volume gain from share wins offset by lower pricing in certain index-based customer contracts. Packaging coatings stood out, with double-digit organic sales growth and volumes up more than 20% on a two-year stacked basis as customers adopted PPG’s technologies.

Financials

At the quarter's end, PPG had cash and cash equivalents totaling roughly $1.57 billion. Long-term debt was roughly $6.4 billion, up $833 million from the first quarter of 2025.

Cash from operating activities was $33 million, about $50 million higher year over year. Capital deployment remained shareholder-focused, with share repurchases totaling about $100 million in the quarter.

Outlook

PPG expects second-quarter organic sales and adjusted earnings per share to range from flat to low single-digit growth year over year. Management reaffirmed its full-year 2026 adjusted earnings guidance range of $7.70 to $8.10 per share.

The outlook assumes continued momentum from share gains and self-help actions, alongside an updated view of global economic activity, foreign exchange rates and regional mix. Management highlighted growth opportunities in aerospace, architectural coatings in Latin America, protective and marine coatings and packaging coatings, while anticipating an improvement in automotive refinish in the back half of the year, tied to customer order phasing.

For the rest of 2026, the company expects mid-single-digit cost of goods sold inflation, translating to an estimated $240 million to $300 million incremental EBITDA headwind. To counter that pressure, management expects pricing to contribute $230 million to $270 million of incremental EBITDA in 2026.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a flat trend in fresh estimates.

VGM Scores

At this time, PPG Industries has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

PPG Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.