ESCO Technologies (NYSE:ESE) Issues Quarterly Earnings Results

ESCO Technologies (NYSE:ESE) posted its earnings results on Thursday. The scientific and technical instruments company reported $1.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.90 by $0.01, FiscalAI reports. The company had revenue of $309.34 million during the quarter, compared to analysts’ expectations of $307.88 million. ESCO Technologies had a return on equity of 13.12% and a net margin of 24.69%.The firm’s quarterly revenue was up 33.5% compared to the same quarter last year. During the same quarter last year, the firm earned $1.35 earnings per share. ESCO Technologies updated its Q3 2026 guidance to 2.050-2.150 EPS and its FY 2026 guidance to 8.000-8.250 EPS.

Here are the key takeaways from ESCO Technologies’ conference call:

• Strong quarterly beat: orders rose 42% (22% organic), revenue +33.5%, adjusted EPS +63% to $1.91, adjusted EBIT margin improved 370 bps to 21.7%, backlog hit a record and full-year adjusted EPS guidance was raised to $8.00–$8.25.
• Acquisition of Megger progressing (regulatory filings underway) with expected close in Q1 FY2027; management expects the deal to be EPS-accretive in year 1 and materially accretive thereafter with an IRR meaningfully above WACC.
• Renewables/end-market weakness at NRG meaningfully weighed the Utility Solutions segment this quarter (orders and sales down), driven by developer pull-forward ahead of tax-credit sunsets, creating near-term volatility and uncertain timing of recovery despite the business remaining profitable.
• Test business momentum continues—orders +21% and sales +27% with margin expansion to 15.4%; management raised conviction on medium-term growth (now targeting ~4–6% organic) and expects to reach ~20% EBITDA margins faster than previously projected.

ESCO Technologies Stock Down 9.0%

NYSE ESE traded down $29.94 during trading on Friday, reaching $302.83. 621,228 shares of the company’s stock were exchanged, compared to its average volume of 335,416. ESCO Technologies has a 1 year low of $172.70 and a 1 year high of $346.20. The company has a debt-to-equity ratio of 0.08, a quick ratio of 0.89 and a current ratio of 1.33. The stock has a market cap of $7.84 billion, a P/E ratio of 25.47, a price-to-earnings-growth ratio of 1.89 and a beta of 1.18. The company has a 50 day moving average price of $292.85 and a two-hundred day moving average price of $246.69.

ESCO Technologies Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 17th. Shareholders of record on Thursday, July 2nd will be issued a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date of this dividend is Thursday, July 2nd. ESCO Technologies’s payout ratio is 2.72%.

Key Stories Impacting ESCO Technologies

Here are the key news stories impacting ESCO Technologies this week:

• Positive Sentiment: ESCO Technologies posted Q2 fiscal 2026 EPS of $1.91, topping analyst estimates, while revenue rose 33.5% year over year to $309.3 million and also slightly beat expectations. Article: ESCO Technologies (ESE) Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company lifted full-year FY 2026 EPS guidance to $8.00-$8.25 and Q3 EPS guidance to $2.05-$2.15, signaling management’s confidence in continued performance. Article: ESCO Reports Second Quarter Fiscal 2026 Results
• Neutral Sentiment: The board declared a quarterly dividend of $0.08 per share, though the yield remains very small at about 0.1%, so this is unlikely to be a major stock driver.
• Neutral Sentiment: Additional earnings-snapshot coverage highlighted the same results, reinforcing the market’s focus on the beat-and-raise message. Article: Esco Technologies: Fiscal Q2 Earnings Snapshot

Hedge Funds Weigh In On ESCO Technologies

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Virtu Financial LLC acquired a new stake in shares of ESCO Technologies in the 4th quarter worth approximately $586,000. Invesco Ltd. lifted its stake in shares of ESCO Technologies by 17.8% during the 4th quarter. Invesco Ltd. now owns 1,050,093 shares of the scientific and technical instruments company’s stock worth $205,178,000 after purchasing an additional 158,949 shares during the period. First Citizens Bank & Trust Co. increased its holdings in shares of ESCO Technologies by 1.3% during the 4th quarter. First Citizens Bank & Trust Co. now owns 3,397 shares of the scientific and technical instruments company’s stock worth $664,000 after buying an additional 42 shares during the last quarter. State of Tennessee Department of Treasury increased its holdings in shares of ESCO Technologies by 7.6% during the 4th quarter. State of Tennessee Department of Treasury now owns 11,854 shares of the scientific and technical instruments company’s stock worth $2,316,000 after buying an additional 836 shares during the last quarter. Finally, NewEdge Advisors LLC increased its holdings in shares of ESCO Technologies by 59.3% during the 4th quarter. NewEdge Advisors LLC now owns 3,115 shares of the scientific and technical instruments company’s stock worth $609,000 after buying an additional 1,160 shares during the last quarter. Institutional investors and hedge funds own 95.70% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on ESE shares. Weiss Ratings cut ESCO Technologies from a “buy (a-)” rating to a “buy (b)” rating in a research note on Tuesday, February 10th. Wall Street Zen cut ESCO Technologies from a “buy” rating to a “hold” rating in a research note on Saturday. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $400.00 target price on shares of ESCO Technologies in a research note on Friday, April 17th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus target price of $400.00.

ESCO Technologies Company Profile

ESCO Technologies Inc is a diversified manufacturer of engineered products and systems designed to meet customers’ critical performance requirements in the test, measurement, control, and filtration of data, fluids, and gases. The company serves a wide range of end markets, including commercial aerospace, defense, industrial, medical, and communication network sectors. ESCO’s solutions are tailored to environments where reliability, precision and regulatory compliance are paramount.

Operating through multiple business segments, ESCO Technologies delivers test and measurement instruments such as RF and microwave components, signal distribution systems, and integrated test enclosures that support defense and aerospace programs.