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

Gates Industrial (NYSE:GTES) updated its FY 2026 earnings guidance on Friday. The company provided earnings per share (EPS) guidance of 1.620-1.700 for the period, compared to the consensus estimate of 1.620. The company issued revenue guidance of $3.5 billion-$3.6 billion, compared to the consensus revenue estimate of $3.6 billion.

Gates Industrial Stock Performance

Gates Industrial stock traded up $2.23 during midday trading on Friday, reaching $28.01. 4,235,054 shares of the stock traded hands, compared to its average volume of 1,719,216. The company has a current ratio of 3.67, a quick ratio of 2.66 and a debt-to-equity ratio of 0.61. The firm has a fifty day moving average price of $26.70 and a two-hundred day moving average price of $25.38. The firm has a market cap of $7.12 billion, a price-to-earnings ratio of 29.18 and a beta of 1.25. Gates Industrial has a fifty-two week low of $20.88 and a fifty-two week high of $29.17.

Gates Industrial (NYSE:GTES) last posted its earnings results on Friday, July 31st. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.42 by $0.02. The firm had revenue of $941.60 million during the quarter, compared to analysts’ expectations of $925.44 million. Gates Industrial had a net margin of 7.23% and a return on equity of 10.00%. Gates Industrial’s quarterly revenue was up 6.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.39 EPS. Gates Industrial has set its FY 2026 guidance at 1.620-1.700 EPS. On average, equities research analysts forecast that Gates Industrial will post 1.53 earnings per share for the current year.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Wolfe Research reaffirmed an “outperform” rating and set a $33.00 target price on shares of Gates Industrial in a research note on Thursday, July 9th. Wall Street Zen cut shares of Gates Industrial from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Morgan Stanley upped their price objective on shares of Gates Industrial from $27.00 to $28.00 and gave the stock an “equal weight” rating in a report on Friday, May 29th. Robert W. Baird lowered their target price on shares of Gates Industrial from $39.00 to $37.00 and set an “outperform” rating on the stock in a research note on Monday, May 4th. Finally, Royal Bank Of Canada raised their target price on shares of Gates Industrial from $30.00 to $33.00 and gave the company an “outperform” rating in a research note on Thursday, July 16th. Seven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $31.50.

Gates Industrial News Roundup

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

• Positive Sentiment: Gates reported second-quarter sales of $941.6 million, up 6.6% year over year, with core sales increasing 4.9%. Revenue exceeded analyst expectations of approximately $925.4 million, indicating solid demand across the business. Gates Industrial Reports Second-Quarter 2026 Results
• Positive Sentiment: Adjusted earnings were $0.44 per share, above the $0.42 analyst consensus and up from $0.39 a year earlier. The company also reported $170.9 million of net income, or $0.67 per diluted share, under its reported accounting measure. Gates Industrial Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Gates raised or reaffirmed a favorable FY 2026 adjusted EPS outlook of $1.62 to $1.70, with the midpoint above the current consensus estimate of $1.62. This suggests management expects earnings momentum to continue. Gates Industrial Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Full-year revenue guidance of $3.5 billion to $3.6 billion reaches the consensus estimate only at the upper end; the midpoint is modestly below expectations. Investors may therefore focus on whether stronger core sales can drive results toward the high end of the range. Gates Industrial Earnings Report

Institutional Investors Weigh In On Gates Industrial

Several hedge funds and other institutional investors have recently bought and sold shares of GTES. Los Angeles Capital Management LLC acquired a new stake in Gates Industrial in the 4th quarter valued at about $26,000. Transamerica Financial Advisors LLC raised its holdings in shares of Gates Industrial by 51.9% in the 4th quarter. Transamerica Financial Advisors LLC now owns 1,577 shares of the company’s stock worth $34,000 after purchasing an additional 539 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Gates Industrial by 273.2% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,911 shares of the company’s stock worth $67,000 after purchasing an additional 2,131 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in Gates Industrial by 1,976.9% during the second quarter. EverSource Wealth Advisors LLC now owns 2,970 shares of the company’s stock valued at $68,000 after purchasing an additional 2,827 shares during the last quarter. Finally, Quadrant Capital Group LLC bought a new stake in Gates Industrial during the third quarter worth approximately $73,000. 98.50% of the stock is currently owned by institutional investors.

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.