Saint Paul, Minnesota-based Ecolab Inc. (ECL) is a global leader in water, hygiene, and infection prevention solutions. It provides science-based products, digital insights, and services that help businesses improve safety, conserve water, optimize energy, and operate more efficiently. The company has a market capitalization of approximately $78.5 billion.
Shares of this technology giant have trailed the broader market over the past year. ECL has gained marginally over this period, while the broader S&P 500 Index ($SPX) has rallied 20.2%. Likewise, ECL has gained 8.8% so far this year, well behind the S&P 500’s 12.6% year-to-date gain.
Narrowing the comparison, ECL has also significantly underperformed the State Street Materials Select Sector SPDR ETF (XLB), which has climbed 16.7% over the past year and 15.8% year-to-date.
On July 28, Ecolab reported its Q2 FY2026 earnings, with shares jumping about 4.2% as results topped estimates and the company raised its outlook. Net sales grew 9.7% to $4.42 billion, driven by improved pricing and volume growth. The company’s non-GAAP EPS rose 10.6% to $2.09.
Ecolab raised its full-year 2026 adjusted diluted EPS guidance to $8.05 to $8.25, representing 7% to 10% growth, from its prior range of $8.03 to $8.23. For the third quarter, the company guided adjusted diluted EPS to $2.13 to $2.23, representing 3% to 8% growth. Ecolab also said it expects second-half organic sales growth of 6% to 7%.
For the current fiscal year ending in December 2026, analysts project ECL’s diluted EPS to increase 8.5% YOY to $8.17. The company’s earnings history is impressive, as ECL has met or surpassed consensus EPS estimates in each of the past four quarters.
Among the 28 analysts covering ECL stock, the consensus rating is a “Moderate Buy,” based on 18 “Strong Buy” ratings, two “Moderate Buy” ratings, seven “Hold” ratings, and one “Strong Sell” rating.
ECL’s configuration is more bullish than it was two months ago, when the stock had 17 “Strong Buy” recommendations.
On July 30, Wells Fargo analyst Jason Haas maintained an “Equal-Weight” rating on Ecolab and raised the price target from $275 to $295.
The mean price target of $319.04 implies 11.7% upside from ECL’s current share price, while the Street-high target of $360 suggests potential upside of 26%.
