Pentair plc (NYSE:PNR) shares fell Tuesday after the water solutions company reported first-quarter 2026 results that topped earnings and revenue estimates but issued a cautious near-term outlook.

Earnings Snapshot

Pentair reported first-quarter adjusted earnings of $1.22 per share, beating analysts' estimates of $1.17. Revenue rose 3% year over year to $1.037 billion, ahead of the consensus estimate of $1.027 billion.

Core sales increased 1% from a year earlier, excluding currency translation, acquisitions and divestitures.

Gross margin expanded to 41.8% from 39.9% a year ago, while adjusted operating margin rose 100 basis points to 25.0%.

Free cash flow used totaled $86 million, compared with $56 million in the prior-year period. The company held $67.7 million in cash and equivalents as of March 31, 2026.

Segment Performance

Flow segment sales increased 11% year over year to $258.1 million. Segment income rose 22% to $61 million, and operating margin expanded 210 basis points to 23.7%.

Water Solutions segment sales declined 1% to $391.0 million. Segment income increased 6% to $100 million, with return on sales rising 160 basis points to 25.5%.

Pool segment sales edged up 1% to $387.1 million. Segment income rose 2% to $128 million, while return on sales improved 30 basis points to 33.1%.

Capital Returns

Pentair paid a quarterly cash dividend of 27 cents per share during the first quarter. The company said a dividend of 27 cents per share will be paid May 1 to shareholders of record as of April 17, 2026.

During the quarter, Pentair repurchased 2.0 million shares for $200 million. As of March 31, $800 million remained under its share repurchase authorization.

Outlook

Pentair raised its full-year adjusted earnings guidance to a range of $5.30 to $5.40 per share from a prior range of $5.25 to $5.40. The updated outlook compares with a consensus estimate of $5.34.

The company lowered its full-year sales forecast to a range of $4.260 billion to $4.343 billion from $4.301 billion to $4.343 billion. The revised range compares with analysts' expectations of $4.309 billion.

For the second quarter, Pentair expects adjusted earnings of $1.47 to $1.50 per share, compared with a consensus estimate of $1.50. Revenue is projected at $1.134 billion, below the Street estimate of $1.157 billion.

President and CEO John L. Stauch said execution across the company's portfolio drove another quarter of growth and margin expansion, adding that the full-year outlook reflects "cautious optimism" amid limited U.S. residential recovery and continued strength in commercial, industrial and municipal markets.

PNR Price Action: Pentair shares were down 10.59% at $82.50 at the time of publication on Tuesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

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