PPG Industries reports results on Tuesday, 27 October, after the market closes. Growth is speeding up; revenue over the twelve months to Q2 2026 was $16.4 billion, which rose 5.0% on the year before.
Source: reported quarterly EPS and aggregated third-party estimates. Historical surprises are context, not a forecast.
View chart data
| Period | Reported EPS | Analysts' estimate |
|---|---|---|
| Sep '25 | $2.13 | $2.08 |
| Dec '25 | $1.51 | $1.58 |
| Mar '26 | $1.83 | $1.77 |
| Jun '26 | $2.23 | $2.25 |
What analysts expect
For the quarter, the analysts’ average EPS estimate is $2.12, in a range from $2.05 to $2.19, while the average revenue estimate stands at $4.3 billion. The analysts’ average estimate for full-year EPS is $7.88, which would be up 4.0% on last year (based on 22 analysts). Of the recommendations, 12 are positive, 13 neutral and 0 negative.
Company guidance
In its latest earnings release, management set full-year 2026 adjusted EPS guidance at $7.70 to $8.10.
Earnings surprise model
The model estimates EPS could land above the analysts’ average estimate by 0.3%, with an estimated chance of a beat at 50.0% based on the last 4 quarters. It shrinks the median recent surprise toward zero and uses a neutral prior for beat frequency; this small sample is a reference estimate, not company guidance.
Track record against estimates
The company reported EPS above the analysts’ average estimate in 2 of the last 4 quarters. Last quarter, EPS of $2.23 compared with an estimate of $2.25, below it by 1.0%.
The trends going in
The trailing gross margin was 40.9%, while the trailing net margin was 9.6%. Net income over the twelve months was $1.6 billion, which rose 55.5% on the year before.
Where the cash went
Operating cash flow over the twelve months was $2.2 billion, up 45.8% on the year before, while capital spending was $757.0 million, or 4.6% of revenue. Free cash flow, operating cash flow less capital spending, was $1.4 billion, up 75.9% on the year before. This represented a free-cash-flow margin of 8.6%, up 3.5 percentage points from a year earlier, as the average diluted share count fell 2.5% over the year.
How today compares
In the context of past results, today’s free-cash-flow margin of 8.6% is higher than 51% of the company’s own past quarterly readings, which have ranged from 1.8% to 13.4%. Today’s twelve-month revenue growth rate of 5.0% is higher than 68% of past readings (−14.2% to 21.5%).
Questions this report will answer
Whether the pick-up in revenue growth continues, and whether results land above or below the analysts’ expectations set out above. At the same time, it must be seen if margins hold at the trailing levels above. The next filing will show whether the trends above continue, slow or reverse.
What it means for our valuation
These trends feed directly into what the shares are worth in our model. In that framework, growth 5 percentage points lower would lower the value by 31.1%, and 5 percentage points higher would raise it by 40.6%. A free-cash-flow margin 1 percentage point lower would lower it by 12.7%.
