Cabot (NYSE:CBT) Posts Earnings Results, Beats Estimates By $0.13 EPS

Cabot (NYSE:CBT) released its earnings results on Tuesday. The specialty chemicals company reported $1.53 earnings per share for the quarter, topping analysts’ consensus estimates of $1.40 by $0.13, FiscalAI reports. Cabot had a net margin of 8.91% and a return on equity of 24.55%. The firm had revenue of $849.00 million for the quarter, compared to analyst estimates of $889.11 million. During the same period in the prior year, the firm earned $1.76 earnings per share. The business’s quarterly revenue was down 11.1% compared to the same quarter last year. Cabot updated its FY 2026 guidance to 6.000-6.500 EPS.

Cabot Stock Down 2.4%

Cabot stock opened at $71.14 on Wednesday. The company has a market capitalization of $3.76 billion, a P/E ratio of 11.84, a PEG ratio of 3.82 and a beta of 0.88. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.08 and a current ratio of 1.61. Cabot has a fifty-two week low of $58.33 and a fifty-two week high of $89.16. The stock has a 50-day simple moving average of $68.50 and a 200-day simple moving average of $71.61.

Cabot Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 13th. Stockholders of record on Friday, February 27th will be issued a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Friday, February 27th. Cabot’s payout ratio is presently 29.95%.

Analyst Ratings Changes

A number of equities research analysts have commented on the stock. Mizuho increased their price objective on shares of Cabot from $72.00 to $80.00 and gave the company an “outperform” rating in a research report on Thursday, December 18th. JPMorgan Chase & Co. dropped their target price on Cabot from $75.00 to $54.00 and set an “underweight” rating on the stock in a report on Friday, November 28th. UBS Group raised their price target on Cabot from $65.00 to $74.00 and gave the company a “neutral” rating in a research note on Monday, January 12th. Zacks Research raised Cabot from a “strong sell” rating to a “hold” rating in a research report on Tuesday, January 27th. Finally, Jefferies Financial Group reiterated a “buy” rating and issued a $81.00 price objective on shares of Cabot in a report on Thursday, January 8th. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $72.25.

Key Cabot News

Here are the key news stories impacting Cabot this week:

• Positive Sentiment: Signed a multi‑year supply agreement with PowerCo SE and reported growth in Battery Materials (Performance Chemicals EBIT +7%), highlighting exposure to EV/battery demand which supports longer‑term growth. Cabot Corporation Reports First Quarter Fiscal Year 2026 Results (Quiver)
• Positive Sentiment: Solid cash generation: operating cash flow of $126M funded $76M returned to shareholders (dividends + $52M buybacks), which supports the dividend and buyback program. Press release (GlobeNewswire)
• Positive Sentiment: Board declared a $0.45 quarterly dividend (payable Mar 13) and the company completed the Mexico Carbon Manufacturing (MXCB) acquisition from Bridgestone — both expand manufacturing footprint and provide steady shareholder income. Dividend press release MXCB acquisition
• Neutral Sentiment: Bullish write‑ups (MSN / InsiderMonkey) outline a thesis focused on valuation, battery exposure and cash returns — useful for context but not new company guidance. Cabot Corporation (CBT): A bull case theory (MSN) InsiderMonkey bull thesis
• Negative Sentiment: Top‑line weakness: Q1 revenue $849M (down 11.1% YoY) missed estimates and Reinforcement Materials EBIT fell 22% due to lower volumes in Americas and Asia Pacific — heightening near‑term demand risk. Q1 results & revenue miss (Quiver)
• Negative Sentiment: Guidance narrowed to $6.00–$6.50 adjusted EPS for FY2026 (slightly below consensus ~6.53), which, together with mixed segment performance, is weighing on sentiment. Guidance in press release
• Negative Sentiment: Notable insider selling (CEO sales reported) may concern some investors about near‑term insider conviction. Insider activity noted (Quiver)

Institutional Investors Weigh In On Cabot

Several large investors have recently modified their holdings of CBT. AQR Capital Management LLC grew its position in shares of Cabot by 123.0% during the second quarter. AQR Capital Management LLC now owns 867,946 shares of the specialty chemicals company’s stock worth $65,096,000 after acquiring an additional 478,702 shares during the last quarter. UBS Group AG grew its position in Cabot by 186.7% during the 3rd quarter. UBS Group AG now owns 593,510 shares of the specialty chemicals company’s stock worth $45,136,000 after purchasing an additional 386,514 shares during the last quarter. Goldman Sachs Group Inc. grew its position in Cabot by 32.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 442,646 shares of the specialty chemicals company’s stock worth $36,802,000 after purchasing an additional 108,645 shares during the last quarter. Barclays PLC increased its stake in Cabot by 60.6% in the third quarter. Barclays PLC now owns 267,989 shares of the specialty chemicals company’s stock valued at $20,381,000 after purchasing an additional 101,168 shares during the period. Finally, Man Group plc raised its holdings in shares of Cabot by 28.2% in the second quarter. Man Group plc now owns 340,823 shares of the specialty chemicals company’s stock valued at $25,562,000 after buying an additional 74,918 shares during the last quarter. 93.18% of the stock is owned by institutional investors and hedge funds.

Cabot Company Profile

Cabot Corporation is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. Founded in 1882 by Godfrey Lowell Cabot, the company has grown into a diversified manufacturer with operations across North America, Europe, Asia and Latin America. Cabot serves a wide range of end markets, including automotive, industrial, energy, and consumer products, supplying essential ingredients that enhance performance, durability and functionality.

The company operates two primary segments: Reinforcement Materials and Performance Materials.