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Flowserve (NYSE:FLS) beats Q2 CY2026 sales expectations, Stock soars. Posted on July 30, 2026 By News Team Flow control equipment manufacturer Flowserve (NYSE:FLS) reported revenue ahead of Wall Street's expectations in Q2 CY2026, but sales fell by 1.6% year on year to $1.17 billion. On the other hand, next quarter's revenue guidance of $1.21 billion was less impressive, coming in 5.9% below analysts' estimates. Its non-GAAP profit of $0.95 per share was 10.5% above analysts' consensus estimates. Flowserve (FLS) Q2 CY2026 highlights: * Revenue: $1.17 billion vs analyst estimates of $1.16 billion (1.6% year-on-year decline, 0.9% beat) * Adjusted EPS: $0.95 vs analyst estimates of $0.86 (10.5% beat) * Revenue Guidance for Q3 CY2026 is $1.21 billion at the midpoint, below analyst estimates of $1.29 billion * Management slightly raised its full-year Adjusted EPS guidance to $4.13 at the midpoint * Operating Margin: 13%, in line with the same quarter last year * Free Cash Flow Margin: 9.6%, down from 11.6% in the same quarter last year * Backlog: $3.34 billion at quarter end, up 16.9% year on year * Market Capitalization: $9.38 billion Company overview. Manufacturing the largest pump ever built for nuclear power generation, Flowserve (NYSE:FLS) manufactures and sells flow control equipment for various industries. Revenue growth. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Flowserve's 4.8% annualized revenue growth over the last five years was tepid. This fell short of its benchmark for the industrials sector and is a tough starting point for its analysis. Equity Insider at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Flowserve's recent performance shows its demand has slowed as its annualized revenue growth of 1.4% over the last two years was below its five-year trend. Equity Insider is wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. Equity Insider can better understand the company's revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. Flowserve's backlog reached $3.34 billion in the latest quarter and averaged 7.1% year-on-year growth over the last two years. Because this number is better than its revenue growth, Equity Insider can see the company accumulated more orders than it could fulfill and deferred revenue to the future. This could imply elevated demand for Flowserve's products and services but raises concerns about capacity constraints. This quarter, Flowserve's revenue fell by 1.6% year on year to $1.17 billion but beat Wall Street's estimates by 0.9%. Company management is currently guiding for a 3% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 10.1% over the next 12 months, an improvement versus the last two years. This projection is noteworthy and indicates its newer products and services will catalyze better top-line performance. WHILE YOU'RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You've probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE. Operating Margin. Operating margin is one of the best measures of profitability because it tells Equity Insider how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. Flowserve has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 8.5%, higher than the broader industrials sector. Analyzing the trend in its profitability, Flowserve's operating margin rose by 2.4 percentage points over the last five years, as its sales growth gave it operating leverage. In Q2, Flowserve generated an operating margin profit margin of 13%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Earnings per share. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth - for example, a company could inflate its sales through excessive spending on advertising and promotions. Flowserve's EPS grew at 17.8% compounded annual growth rate over the last five years, higher than its 4.8% annualized revenue growth. This tells Equity Insider the company became more profitable on a per-share basis as it expanded. Equity Insider can take a deeper look into Flowserve's earnings quality to better understand the drivers of its performance. As Equity Insider mentioned earlier, Flowserve's operating margin was flat this quarter but expanded by 2.4 percentage points over the last five years. On top of that, its share count shrank by 1.9%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, Equity Insider analyze EPS over a shorter period to see if Equity Insider is missing a change in the business. For Flowserve, its two-year annual EPS growth of 23.7% was higher than its five-year trend. Equity Insider love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q2, Flowserve reported adjusted EPS of $0.95, up from $0.91 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Flowserve's full-year EPS to grow 15.3% from $3.81 to $4.39.

Sanmar is looking for new growth areas. Chennai-based Sanmar Group is evaluating warehousing among other sectors as part of its future growth plans. The proposal, however, is still at a preliminary stage, said Vijay Sankar, Chairman, The Sanmar Group. Responding to reporters' questions during a press conference in Chennai on Tuesday, he said that the group was examining warehousing opportunities but had not taken a final decision. Asked whether the company has plans to develop its existing landholdings or acquire new land for warehousing, Vijay Sankar said, "It's still early days." He declined to disclose details on the scale, investment or timeline of any potential project. Meanwhile, Sanmar Group, which is known for forming long standing joint ventures, saw yet another milestone. Sanmar Engineering, a synergistic group of joint venture partnerships between Sanmar Group and US-based corporations Flowserve, BS&B Safety Systems, Crane Company, and Emerson, will complete 50 years on 1 July. "Sanmar Engineering's long-standing partnerships with the US companies had facilitated technology transfer, localisation and manufacturing in India over the past five decades," Vijay Sankar said. Sanmar Engineering said it was expanding manufacturing capacity across its engineering subsidiaries to support demand from both established process industries and emerging sectors. Among the key initiatives, Xomox Sanmar is increasing annual valve manufacturing capacity at its Viralimalai facility in Tamil Nadu from 80,000 to 150,000 valves. Flowserve Sanmar has commissioned the first phase of a new manufacturing facility to manufacture seal support systems for industrial pumps. Anderson Greenwood Crosby Sanmar is strengthening its testing infrastructure for safety and pressure-relief products. B Visweswaran, Managing Director, Sanmar Engineering, said that the group's engineering businesses continued to manufacture critical industrial products for sectors such as oil and gas, petrochemicals, chemicals, fertilisers, pharmaceuticals and power. The businesses had achieved high levels of localisation with minimal import content and served both domestic customers and export markets through the group's long-standing joint venture partners in the United States, he said. "Our import content is actually very, very low," Narayanan Sethuramon, vice-chairman, Sanmar Matrix Metals, said. In addition, the group had built a strong domestic supplier ecosystem for its engineering businesses. The products manufactured in India were supplied not only to domestic customers but also to the group's joint venture partners and their customers in global markets, strengthening India's role as a manufacturing base for high-technology engineering products, he added. The company also identified green hydrogen, battery energy storage systems (BESS), defence and the space sector as emerging growth opportunities alongside its traditional industrial markets. "There are new opportunities in green hydrogen, battery storage systems, defence and the space sector," Visweswaran said. The group's engineering businesses continued to cater to traditional industries while preparing for demand from new sectors, he added. The company remained optimistic about India's long-term manufacturing prospects despite geopolitical uncertainties, Vijay Sankar said. Latest. Don't miss. June 30, 2026

Flowserve's fair value estimate has been trimmed to $90.00 from $94.80, reflecting a roughly 5% reduction as analysts reassess the industrial equipment maker's revenue growth and margin potential. Wall Street remains divided, with price target cuts ranging from $15 to $1 across multiple firms, whilst Jefferies initiated coverage with a Buy rating and Stifel raised its target by $5. The company reaffirmed 2026 guidance targeting adjusted operating margin expansion and double-digit adjusted earnings per share growth. However, first-quarter revenue fell 6.7% year-on-year and missed expectations, prompting management to lower 2026 sales growth guidance to 3%–6% from 5%–7%. The stock has declined 12.4% since earnings. Activist investor Starboard Value has pushed for improved execution, whilst Flowserve highlighted 2030 targets including 20% adjusted operating margin.