$POOL · POOL CORP
Pool Corporation reported Q3 2026 results with net sales up 4% YoY to $1.5 billion, accelerating from 2% growth in Q2. Diluted EPS was flat at $3.40, while adjusted diluted EPS rose $0.01. Gross margin compressed 60 bps to 29.0% on higher freight costs and customer mix. The company confirmed its full-year 2026 adjusted diluted EPS guidance range of $10.87 to $11.17 and raised its quarterly dividend 4% to $1.30 per share.
- Q3 net sales rose 4% YoY to $1.5 billion, accelerating from 2% growth in Q2 2026
- Q3 diluted EPS of $3.40 was flat YoY; adjusted diluted EPS increased $0.01 to $3.40
- Gross margin contracted 60 bps to 29.0%, driven by higher inbound freight costs and customer mix
- Operating cash flow surged 47% to $419.8 million in the first nine months of 2026
- Company returned $158.7 million to shareholders in Q3 via buybacks and dividends; quarterly dividend raised 4% to $1.30/share
Stock surged +9.24% to $188.37 in the regular session following the release. The market appears to be rewarding the sales growth acceleration, confirmed full-year guidance, and strong capital returns despite modest margin compression.
Sales growth accelerated sequentially while the company confirmed full-year guidance and demonstrated strong cash generation — a bullish combination that sent shares up over 9%.
POOLCORP's 4% sales growth and confirmed guidance signal resilient demand in the outdoor living and pool maintenance aftermarket, even as gross margins face freight and mix headwinds — a dynamic peers in specialty distribution are also navigating.
Gross margin declined 60 bps YoY to 29.0% due to higher inbound freight costs and customer mix; operating margin fell 90 bps to 11.4%. Total debt rose $104.9 million to $1.2 billion. Forward-looking risks include weather sensitivity, housing market exposure, and potential tariffs.
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