Ecolab (Ecolab (ECL)) shares climbed Tuesday after the water, hygiene and infection prevention company delivered second-quarter results that edged past Wall Street expectations and lifted its full-year earnings forecast.

Adjusted earnings came in at $2.09 per share, topping the analyst consensus estimate of $2.08 and improving from $1.89 a year earlier. Revenue rose to $4.42 billion from $4.03 billion last year, exceeding the $4.39 billion analysts were looking for.

Raises 2026 Outlook

Ecolab raised its fiscal 2026 adjusted EPS guidance to $8.05 to $8.25, up from its prior forecast of $8.03 to $8.23. The updated range brackets the Wall Street consensus estimate of $8.22.

For the third quarter, the company expects adjusted diluted EPS of $2.13 to $2.23, representing year-over-year growth of 3% to 8%. Ecolab said the guidance reflects strong underlying operating performance, partly offset by non-cash amortization and financing costs related to its CoolIT acquisition.

Margins And Balance Sheet

Operating income margin was 17.2%, while organic operating income margin expanded 40 basis points to 18.8%.

Reported gross margin was 44.1%. Adjusted gross margin declined 60 basis points, reflecting the impact of the Ovivo Electronics acquisition. Excluding that acquisition, organic gross margin was flat as pricing offset higher commodity costs.

The company ended the quarter with $5.14 billion in cash and cash equivalents as of June 30.

CEO Commentary

Chairman and Chief Executive Officer Christophe Beck said the company delivered another quarter of double-digit earnings growth, driven by accelerating organic sales, improved pricing and productivity gains.

Beck said reported volume increased 1% despite nearly a 1% headwind from customer disruptions tied to the Middle East conflict. He added that pricing improved 4%, helped by the early rollout of the company's energy surcharge to offset rising commodity costs.

ECL Price Action: Ecolab shares were up 4.48% at $283.54 at the time of publication on Tuesday.