ESCO Technologies (NYSE:ESE) Releases Earnings Results, Beats Expectations By $0.01 EPS

ESCO Technologies (NYSE:ESE) issued its quarterly 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. ESCO Technologies had a net margin of 24.69% and a return on equity of 13.12%. The company had revenue of $309.34 million during the quarter, compared to analyst estimates of $307.88 million. During the same period last year, the business earned $1.35 EPS. ESCO Technologies’s quarterly revenue was up 33.5% compared to the same quarter last year. 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%

ESCO Technologies stock traded down $29.94 during trading hours on Friday, hitting $302.83. The stock had a trading volume of 621,228 shares, compared to its average volume of 335,416. The stock’s 50-day moving average price is $292.85 and its 200-day moving average price is $246.69. The stock has a market capitalization 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. ESCO Technologies has a 12-month low of $172.70 and a 12-month high of $346.20. The company has a quick ratio of 0.89, a current ratio of 1.33 and a debt-to-equity ratio of 0.08.

ESCO Technologies Announces Dividend

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

Analyst Upgrades and Downgrades

ESE has been the subject of several recent research reports. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $400.00 target price on shares of ESCO Technologies in a report on Friday, April 17th. Weiss Ratings downgraded ESCO Technologies from a “buy (a-)” rating to a “buy (b)” rating in a research note on Tuesday, February 10th. Finally, Wall Street Zen lowered ESCO Technologies from a “buy” rating to a “hold” rating in a research report on Saturday. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and an average target price of $400.00.

Key ESCO Technologies News

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

A number of hedge funds have recently added to or reduced their stakes in ESE. Quarry LP boosted its stake in ESCO Technologies by 842.9% during the 4th quarter. Quarry LP now owns 132 shares of the scientific and technical instruments company’s stock valued at $26,000 after purchasing an additional 118 shares during the last quarter. Osterweis Capital Management Inc. purchased a new position in shares of ESCO Technologies in the second quarter worth $39,000. Aster Capital Management DIFC Ltd bought a new position in shares of ESCO Technologies during the fourth quarter valued at $39,000. Caitong International Asset Management Co. Ltd lifted its holdings in shares of ESCO Technologies by 23,300.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 234 shares of the scientific and technical instruments company’s stock valued at $49,000 after purchasing an additional 233 shares in the last quarter. Finally, Kemnay Advisory Services Inc. purchased a new stake in shares of ESCO Technologies during the fourth quarter valued at $51,000. 95.70% of the stock is currently owned by hedge funds and other institutional investors.

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.