Did Ingersoll Rand's (IR) Mixed Earnings and Guidance Shift Its Long-Term Growth Outlook?

• Ingersoll Rand Inc. recently announced its third quarter 2025 results, reporting sales of US$1,955 million and net income of US$244.1 million, both higher than the same period last year, along with updates to its share repurchase program and full year revenue guidance.
• An interesting detail is that, despite growth in third quarter results, net income for the first nine months was substantially lower year over year, highlighting variability across reporting periods.
• We’ll examine how Ingersoll Rand’s updated full-year revenue guidance informs the company’s investment narrative in the current landscape.

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Ingersoll Rand Investment Narrative Recap

To be a shareholder in Ingersoll Rand, one needs conviction in the company’s ability to convert innovation in efficiency and sustainability into steady growth, while controlling the inherent execution and acquisition risks in a cyclical industrial market. The latest third quarter results, which showed year-over-year improvements in sales and net income, appear supportive of this narrative, but do not materially change the short-term catalyst: sustained demand for energy-efficient equipment. The biggest near-term risk remains muted order growth in key segments, which the results so far have not resolved.

Among recent company actions, management’s guidance for 2025 full-year revenue growth of 4%–6% stands out. This target reflects measured optimism about end-market demand for its innovative equipment, which, if met, could help offset slowing organic order growth and strengthen the company’s position relative to competitors, especially as volatility and uncertainty continue in global markets.

However, investors should also be aware that, despite recent quarterly improvements, the rapid swings in year-to-date net income hint at the impact of...

Read the full narrative on Ingersoll Rand (it's free!)

Ingersoll Rand's outlook anticipates $8.8 billion in revenue and $1.4 billion in earnings by 2028. This scenario assumes a 6.1% annual revenue growth rate and a $877 million increase in earnings from the current $522.6 million.

Uncover how Ingersoll Rand's forecasts yield a $89.67 fair value, a 16% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community offers four fair value estimates for Ingersoll Rand, ranging from US$86.12 to US$121.47 per share. Participants hold contrasting outlooks, but with organic order growth slowing in core businesses, it’s crucial you explore a breadth of perspectives on future revenue expectations.

Explore 4 other fair value estimates on Ingersoll Rand - why the stock might be worth just $86.12!

Build Your Own Ingersoll Rand Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Ingersoll Rand research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Ingersoll Rand research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ingersoll Rand's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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