ITT Inc. (ITT) · Q2 2026 results and valuation

At 9.6% growth a year (3-year revenue growth), the model's fair value is $106.13 a share — the stock trades 103% above it. Today's price assumes 17.4% growth a year.

1. Key theme

   CCT delivered 23% operating income growth to a margin of 21.7%

   Source quote

   “Our strong top line performance contributed to operating income growth of 55% and margin expansion of 40 basis points, supported... And finally, Flow Technologies grew 21% organically, driven by strong project shipments and from strength in short cycle, which was up 10% year-over-year. CCT delivered 23% operating income growth to a margin of 21.7%, a 100 basis point expansion, driven by increased...”

2. Guidance ↑

   Adjusted 2026 EPS outlook raised to $8.22 at the midpoint on strong first half momentum.

   Source quote

   “As a result of the momentum we generated in the first half of the year, we are raising our adjusted EPS outlook for 2026 to $8.22 at the midpoint.”

3. Guidance

   ITT expects to expand margin sequentially throughout the year due to cost synergy realization and other productivity initiatives.

   Source quote

   “We expect to expand margin sequentially throughout the year from cost synergy realization and other productivity initiatives.”

4. Last period

   On profitability, operating income grew 42% and margin expanded 130 basis points, primarily driven by strong operational performance in ITT's legacy…

   Source quote

   “On profitability, operating income grew 42% and margin expanded 130 basis points, primarily driven by strong operational performance in our legacy... NXPX FLOW added 17 points of growth to IT. MT operating income grew 22% for a margin of 21.1% as the team drove net productivity of 220 basis points.”

Management sounded noticeably less positive answering analysts than in its prepared script — one of the biggest drops of any company call. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“Our strong top line performance contributed to operating income growth of 55% and margin expansion of 40 basis points, supported further by the full quarter of SPX FLOW as well...”

“We have a path to our high single-digit growth commitment with orders in the first half of the year growing 7% and revenue growing 9% year-to-date, resulting in a book-to-bill...”

“And finally, Flow Technologies grew 21% organically, driven by strong project shipments and from strength in short cycle, which was up 10% year-over-year.”