Gates Industrial (NYSE:GTES) Issues FY 2026 Earnings Guidance

Gates Industrial (NYSE:GTES) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 1.520-1.680 for the period, compared to the consensus estimate of 1.560. The company issued revenue guidance of $3.5 billion-$3.6 billion, compared to the consensus revenue estimate of $3.5 billion.

Gates Industrial Stock Performance

Shares of GTES stock opened at $28.04 on Friday. The stock has a market cap of $7.24 billion, a PE ratio of 28.90 and a beta of 1.27. The stock has a 50-day moving average of $23.09 and a 200-day moving average of $23.85. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.37 and a quick ratio of 2.50. Gates Industrial has a one year low of $14.70 and a one year high of $28.47.

Gates Industrial (NYSE:GTES) last announced its quarterly earnings results on Thursday, February 12th. The company reported $0.38 earnings per share for the quarter, topping analysts’ consensus estimates of $0.37 by $0.01. Gates Industrial had a net margin of 7.30% and a return on equity of 10.36%. The company had revenue of $856.20 million for the quarter, compared to analysts’ expectations of $853.35 million. During the same period last year, the firm posted $0.36 earnings per share. The business’s quarterly revenue was up 3.2% compared to the same quarter last year. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. As a group, sell-side analysts expect that Gates Industrial will post 1.36 earnings per share for the current year.

Analysts Set New Price Targets

Several brokerages have issued reports on GTES. Weiss Ratings restated a “hold (c+)” rating on shares of Gates Industrial in a report on Monday, December 29th. Robert W. Baird set a $39.00 target price on Gates Industrial in a research note on Friday. Barclays lifted their price target on shares of Gates Industrial from $26.00 to $32.00 and gave the company an “overweight” rating in a research note on Friday. Royal Bank Of Canada reissued an “outperform” rating and set a $31.00 price objective on shares of Gates Industrial in a research report on Friday. Finally, Citigroup raised their price objective on shares of Gates Industrial from $27.00 to $33.00 and gave the stock a “buy” rating in a report on Friday. Six investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $29.67.

Gates Industrial News Roundup

Here are the key news stories impacting Gates Industrial this week:

• Positive Sentiment: Q4 adjusted EPS beat estimates — Gates reported adjusted EPS of $0.38 vs. the $0.37 consensus, confirming modest improvement in profitability year-over-year. Read More.
• Positive Sentiment: Capital returns and cash generation — Management repurchased approximately $105 million of shares and generated $478.1 million of operating cash flow for 2025, supporting shareholder returns and balance-sheet flexibility. Read More.
• Neutral Sentiment: FY?2026 guidance essentially in line with consensus — Gates provided an EPS range of $1.520–$1.680 (consensus ~$1.56) and revenue guidance of $3.5B–$3.6B, leaving room for execution risk but not signaling a material reset. Read More.
• Neutral Sentiment: Revenue roughly in line with estimates but soft growth — Q4 sales were $856.2M (in line with estimates) and up just 3.2% YoY, reflecting limited core sales expansion. Read More.
• Negative Sentiment: Underlying demand and GAAP profitability show restraints — core sales growth was modest (0.6% in the quarter, 1.0% for FY), and GAAP net income per diluted share for the quarter was $0.20 versus adjusted $0.38, highlighting one?time items and ongoing margin sensitivity. Read More.
• Neutral Sentiment: Management provided supporting materials — earnings slide deck and conference-call materials are available for deeper detail on segment trends and the drivers behind guidance. Read More.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in GTES. Empowered Funds LLC bought a new stake in Gates Industrial during the 1st quarter worth about $381,000. Creative Planning increased its position in shares of Gates Industrial by 53.9% in the second quarter. Creative Planning now owns 15,435 shares of the company’s stock valued at $355,000 after acquiring an additional 5,404 shares during the last quarter. Prudential Financial Inc. raised its holdings in Gates Industrial by 52.7% during the second quarter. Prudential Financial Inc. now owns 17,940 shares of the company’s stock worth $389,000 after acquiring an additional 6,190 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its position in Gates Industrial by 273.2% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,911 shares of the company’s stock valued at $67,000 after purchasing an additional 2,131 shares during the last quarter. Finally, M&T Bank Corp boosted its position in Gates Industrial by 8.6% during the second quarter. M&T Bank Corp now owns 11,801 shares of the company’s stock valued at $272,000 after purchasing an additional 937 shares during the last quarter. Institutional investors own 98.50% of the company’s stock.

Gates Industrial Company Profile

Gates Industrial Corporation PLC (NYSE: GTES) is a leading global manufacturer of engineered power transmission belts and fluid power products. The company’s portfolio includes synchronous belts, V-belts, hose assemblies, fittings and hydraulic components designed to support a wide range of industrial and automotive applications. Gates Industrial serves sectors such as agriculture, mining, construction, manufacturing, transportation and consumer markets, offering solutions that improve performance, reliability and efficiency in demanding operating environments.

In its power transmission segment, Gates Industrial produces high-strength belts engineered for precise motion control and minimal maintenance.