It has been about a month since the last earnings report for Carlisle (CSL Quick QuoteCSL - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Carlisle due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Carlisle Companies Incorporated before we dive into how investors and analysts have reacted as of late.

Carlisle Q2 Earnings Beat Estimates on Record Sales, Outlook Raised

Carlisle reported second-quarter 2026 adjusted earnings of $7.03 per share, which beat the Zacks Consensus Estimate of $6.43 by 9.3%. The bottom line increased 12% year over year. 

Revenues rose 8% year over year to a record $1.57 billion and surpassed the consensus estimate of $1.47 billion. Organic revenues rose 7.9%, while acquisitions and foreign-currency translation contributed 0.3% and 0.1%, respectively, to the top-line growth.

Segmental Discussion

Carlisle has divested its Carlisle Interconnect Technologies segment. The company now reports under the following two segments.

Revenues from the Carlisle Construction Materials segment increased 7.8% year over year to $1.18 billion. Our estimate for segmental revenues was $1.09 billion. Organic revenues rose 7.7%, driven by healthy re-roofing demand, strategic initiatives and strong commercial execution, partly offset by continued softness in commercial new construction. Adjusted EBITDA of $363 million increased 4.8% year over year. 

Revenues from the Carlisle Weatherproofing Technologies segment increased 9.9% year over year to $389 million. Our estimate for segmental revenues was $350.2 million. Organic revenues rose 8.4% as share gains more than offset continued softness in residential and non-residential new construction markets. Adjusted EBITDA of $74.1 million increased 5% year over year.

Margin Profile

Carlisle’s cost of sales increased 10.3% year over year to $1.00 billion. Selling and administrative expenses rose 1.2% to $199.3 million, while research and development expenses totaled $11.4 million, up 2.7% year over year. 

It recorded operating income of $352.5 million, up 5.2% year over year. However, the operating margin contracted 70 basis points to 22.4% from 23.1% in the year-ago quarter, as higher raw material and freight costs outpaced pricing realization.

Carlisle’s Balance Sheet and Cash Flow

At the end of the second quarter, Carlisle had cash and cash equivalents of $665.3 million compared with $1.11 billion at the end of 2025. Long-term debt, including the current portion, was $2.89 billion, largely unchanged from the year-end 2025 level. 

In the first six months of 2026, it generated net cash of $197.1 million from operating activities compared with $288.9 million in the year-ago period.

During the same period, it paid dividends of $90.1 million, up 2% year over year. The company repurchased shares worth $500 million, down 28.6% from the prior-year period.

Outlook

For 2026, Carlisle raised its outlook. The company now expects revenues from the Carlisle Construction Materials segment to increase in the mid-single-digit range, while revenues from the Carlisle Weatherproofing Technologies segment are also projected to grow in the mid-single-digit range year over year.

For 2026, the company expects consolidated revenues to increase in the mid-single-digit range on a year-over-year basis. Adjusted EBITDA margin is projected to remain flat, while the free cash flow margin is expected to be approximately 15%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -7.61% due to these changes.

VGM Scores

At this time, Carlisle 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 C on the value side, putting it in the middle 20% for value investors.

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

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Carlisle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Carlisle belongs to the Zacks Diversified Operations industry. Another stock from the same industry, 3M (MMM Quick QuoteMMM - Free Report) , has gained 1.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

3M reported revenues of $6.5 billion in the last reported quarter, representing a year-over-year change of +5.6%. EPS of $2.40 for the same period compares with $2.16 a year ago.

For the current quarter, 3M is expected to post earnings of $2.40 per share, indicating a change of +9.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days.

3M has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.