Pool Corporation (POOL) shares tumbled 5.04% during intraday trading on Thursday, as investors reacted negatively to the company's second-quarter results that revealed a revenue shortfall and full-year earnings guidance that fell below Wall Street expectations.

The swimming pool supplies distributor reported Q2 revenue of $1.80 billion, missing the IBES consensus estimate of $1.817 billion. While adjusted earnings per share of $5.38 came in ahead of the $5.32 analyst forecast, GAAP diluted EPS remained flat at $5.17 year-over-year, as net income declined 3% to $188.09 million. Gross margin narrowed 0.3 percentage points to 29.7%, pressured by elevated inbound freight costs and shifts in customer mix.

Adding to investor concerns, Pool Corp confirmed its full-year 2026 GAAP diluted EPS guidance range of $10.66 to $10.96, which fell short of the FactSet consensus estimate of $11.07. The guidance range reflects the impact of $8.3 million in CEO transition costs, which contributed to a 4% rise in selling and administrative expenses during the quarter. The combination of the revenue miss and subdued profit outlook appeared to outweigh the company's better-than-expected adjusted earnings and a 2% rise in net sales driven by steady maintenance demand and improved building materials sales.