Pentair (PNR) anticipated Q2 adjusted earnings below its guidance and cut its full-year outlook on account of weakness in its Pool segment, with channel destocking exceeding prior assumptions along with somewhat worsening demand conditions, Oppenheimer said in a note Wednesday.

For Q2, the destocking is expected to cut Pool segment sales by $170 million and income by $105 million, while for 2026, the destocking is estimated to cut sales and income by about $250 million and $150 million, respectively, the brokerage said.

Pentair now estimates Q2 sales of about $930 million and adjusted earnings per share of about $1.12, below its prior guidance for $1.47 to $1.50. For 2026, the company lowered sales guidance to down about 4% to 7%, while adjusted EPS is expected to be between $4.60 and 4.80, compared with previous outlook range of $5.30 to 5.40, according to the note.

Oppenheimer said it now expects 2026 and 2027 EPS of $4.72 and $5.35, compared with $5.35 and $5.90 previously, and sees upside potential from residential demand recovery, mix-accretive commercial sales outgrowth, and strategic capital deployment.

Oppenheimer maintained its outperform rating on Pentair and lowered its price target to $94 from $115.

Shares of Pentair were up more than 2% in Thursday trading.

Price: 65.83, Change: +1.50, Percent Change: +2.32