Eastman Chemical drew five news stories in the 24 hours to 1 November, against a usual one per day. Reports center on the company's third-quarter results and a reinstated Department of Energy recycling grant. The filings show net income fell 13.3% over the year while free cash flow rose 18.7%, a split that sits at the center of the undervaluation question raised in the coverage.
Growth has picked up
Revenue over the twelve months to Q3 2026 was $9.0 billion, up 0.3% on the year before. That growth rate was 4.8 percentage points higher than the rate a quarter earlier. The company announced its third-quarter financial results on 29 October 2026.
Net income over the twelve months was $625.0 million, down 13.3% on the year before, while free cash flow was $469.0 million, up 18.7% over the same period. Operating cash flow was $879.0 million, down 12.8%, and capital spending was $410.0 million, or 4.5% of revenue. Operating cash flow fell while free cash flow rose, a combination that requires capital spending to have declined by a wider margin than the drop in operating cash flow.
The free-cash-flow margin was 5.2% of revenue, up 0.8 percentage points from a year earlier. Free cash flow rose 18.7% over the year against revenue growth of 0.3%, so each dollar of sales is producing more cash than a year ago.
In our model, a free-cash-flow margin one percentage point lower would lower the value by 45.8%, while growth five percentage points lower would lower it by 59.9%.
Net income fell 13.3% over the year while revenue rose 0.3%, so costs are absorbing a larger share of each dollar of sales. The trailing net margin was 6.9% and the trailing gross margin was 20.6%. Several reports covering the quarter and the earnings call frame this profit decline as the central tension in the story.
Where Eastman Chemical Co's figures sit in its own record
The twelve-month revenue growth rate of 0.3% is higher than 45% of past readings, which have ranged from −14.0% to 27.3%. The margin sits near the bottom of the historical range while the growth rate sits near the middle.
What Eastman Chemical Co's share price implies against our model
The model also shows an asymmetry on the growth side: five percentage points higher would raise the value by 78.7%, more than the 59.9% decline from an equal drop. The upside from sustained growth acceleration is therefore larger than the downside from a similar deceleration.
What the filings cannot tell you at Eastman Chemical Co
Our figures run to Q3 2026, from the company's own filings; they cannot confirm, explain or rule out anything in the reports. The free-cash-flow margin and net margin bear on the undervaluation framing in the coverage, and the revenue growth rate bears on the acceleration point, but the filings do not connect these numbers to the specific events reported.