Ecolab (ECL) is expected to report Q3 results in line with expectations and reaffirm its full-year earnings per share guidance as pricing tailwinds boost organic growth for the rest of the year, RBC Capital Markets said in a note Friday.

Analysts, including Ashish Sabadra, project about 4% organic revenue growth for Q3, likely driven by strength in high-tech, life sciences, institutional, and pest control businesses. Pricing could rise to around 3% in Q3 and Q4, supported by a 5% US tariff surcharge and value-based pricing strategies, analysts added.

For Q3, the analysts estimate adjusted earnings per share of $2.07, operating income of $796 million, and an operating margin of 19.3%, all in line with consensus, while revenue is likely to be slightly below consensus at $4.12 billion. For the full year, Ecolab is expected to confirm its EPS guidance for $7.42 to $7.62, RBC said.

Ecolab's continued focus on higher-growth areas such as data centers, microelectronics, life sciences, and digital offerings, as well as the Ovivo acquisition position the company for EPS growth of 12% to 15% in fiscal year 2026 and beyond, according to the note.

"We see Ecolab as a strong franchise given over 90% recurring revenues, long-term revenue growth of 5% to 7% and normalized EPS growth of 15% based on the razor/razor blade consumable model," analysts said.

The company is scheduled to report Q3 results on Oct. 28.

RBC has an outperform rating and a $294 price target on Ecolab.

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