IEX · Q2 2026 Earnings

Bullish

IDEX Corporation

Reported July 29, 2026

30-second summary

Q2 adjusted EPS of $2.32 blew past the $2.07–$2.12 guide by $0.20 on 5% organic revenue growth (vs. 3–4% guide) and record orders of $1,071.6M, with organic orders up 28% led by HST. Management raised FY26 adjusted EPS to $8.70–$8.85 (from $8.35–$8.55, midpoint +2.2% to ~10% YoY growth) and FY26 organic growth to 5–6% (from 3–4%) — the second consecutive quarterly raise, reversing the "no inflection" hardline from Q4. The framing has completed its migration from "encouraged by strategies" (Q1) to "record" demand and "improved visibility in the second half" — the acceleration thesis now runs the guide.

Headline numbers

EPS

Q2 FY2026

$2.32

+9.9% vs est.

Revenue

Q2 FY2026

$0.92B

+6.0% YoY

+1.7% vs est.

Gross margin

Q2 FY2026

46.3%

Free cash flow

Q2 FY2026

$0.18B

Operating margin

Q2 FY2026

21.7%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$0.92B	$0.86B	+6.4%	$0.89B	+3.8%
EPS	$2.32	$2.07	+12.1%	$2.00	+16.0%
Gross margin	46.3%	45.3%	+100bps	44.9%	+140bps
Operating margin	21.7%	21.7%	+0bps	19.4%	+230bps
Free cash flow	$0.18B	$0.15B	+20.4%	$0.09B	+105.8%

Guidance

IDEX raised full-year FY2026 guidance across EPS and organic sales growth after Q2 beat; record orders and strong H2 visibility drive confidence.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Adjusted Diluted EPS	Q2 FY2026	$2.07 to $2.12	$2.32	+$0.20 above guide high	Beat
Revenue	Q2 FY2026	No explicit dollar guide	$0.9206B	+1.66% above consensus estimate	Beat
Organic Revenue Growth	Q2 FY2026	3% to 4%	5%	+1 percentage point above guide high	Beat

New guidance

Metric	Period	Guide	YoY
Adjusted Diluted EPS	Q3 FY2026	$2.20 to $2.25	—
Organic Sales Growth	Q3 FY2026	5% to 7%	+5% to +7% YoY

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Adjusted Diluted EPS	FY2026	$8.35 to $8.55	$8.70 to $8.85	+$0.15 to $0.30 at midpoint (+2.2%)	Raised
Organic Sales Growth	FY2026	3% to 4%	5% to 6%	+1 to 2 percentage points	Raised
Adjusted EBITDA Margin	FY2026	26.5% to 27%	Withdrawn — no replacement	—	Withdrawn

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Health & Science Technologies	$0.415B	$0.365B	+13.7%
Fluid & Metering Technologies	$0.317B	$0.311B	+2.0%
Fire & Safety/Diversified Products	$0.19B	$0.192B	-1.1%

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Orders	$1,071.6M	—	—
Organic Orders Growth	28%	2%	—
Organic Revenue Growth	5%	—	—
Adjusted EBITDA Margin	28.1%	27.4%	—
Free Cash Flow Conversion	103%	94%	—
HST Adjusted EBITDA Margin	28.7%	—	—
FMT Adjusted EBITDA Margin	34.8%	—	—
FSDP Adjusted EBITDA Margin	28.9%	—	—

Management tone

Q2 2025 policy-whiplash reset → Q3 2025 operational discipline and capital return → Q4 2025 "no inflection" hardline → Q1 2026 inflection conceded → Q2 2026 "record" demand and elevated visibility.

Note: no earnings transcript was available for Q2 FY2026, so tone analysis draws exclusively from press release language and management's written commentary.

"Record" is now the operative word, replacing "encouraged" from Q1 and denying "no inflection" from Q4. Q4's headline was "we are not seeing an inflection point in activity, and our guidance reflects this reality." Q1 softened to "encouraged by how our strategies are translating into higher-quality growth." Q2's press release states orders of over $1 billion "were a record as we continue to see elevated demand across the advantaged markets." Three quarters of progressive framing escalation, each backed by an incremental FY guide raise. The shift from "encouraged" to "record" in a single quarter, paired with organic orders accelerating from +10% to +28%, is the strongest positive-conviction signal management has issued in the coverage window.

"Improved visibility in the second half" is a new disclosure category. Prior communications through Q1 emphasized platform builds and integration. This quarter's language — "strong performance year-to-date and improved visibility in the second half of our fiscal year" — pairs execution with forward visibility for the first time. In an industrial guiding one-quarter-plus-full-year, "visibility" is the word that justifies the $0.30 midpoint raise: management is telling investors the H2 range is tighter, not just higher.

The margin conversation shifted from "reinvestment" to unspoken upside. Q1's narrative held the FY26 EBITDA margin band at 26.5–27.0% specifically to preserve reinvestment flexibility — the savings were funding growth, not flowing through. Q2 withdrew that entire band from the guide without replacing it, while printing 28.1% actual. Management didn't reframe margin publicly; they simply stopped guiding it. Read: they don't want to be locked into a range that Q2's actual has already blown through, but they also don't want to broadcast the run-rate ahead of H2. This is the most consequential silent shift in the print.

"Flow-through on strong volume drove earnings above our expectations" — the mechanical language of a company where the operating leverage thesis is now running ahead of the guide. Q4's framing was that $20M of $60M FY25 savings were temporary and being reinvested. Two quarters later the company is beating EPS guides by ~10% on 1–2 points of organic upside. The unit economics of the incremental dollar are visibly better than the FY26 initial guide implied.

Answers to last quarter's watch list

Does HST sustain double-digit organic growth in Q2? HST reported +14% (segment organic not separately disclosed in the release). Against Q1's +17% reported / +11% organic, the +14% reported suggests HST organic is running at high-single to low-double-digit pace — sustained inflection above the mid-single-digit FY26 HST segment guide. HST EBITDA margin of 28.7% also stepped up +210bps QoQ.

Resolved positively

FMT and FSDP organic trajectory vs. the updated "flattish" FY26 segment guide. FMT reported +2% (organic implied slightly below), tracking above the "flat-to-slightly-down" original FY26 framing but decelerating from Q1's +4%. FSDP reported −1% — organic remains in the "down" segment framing. FMT is confirming above-flat; FSDP has not yet stabilized.

Continue monitoring

Q2 organic orders growth vs. Q1's +10%. Organic orders +28% on record $1.07B — a material acceleration, not a fade. The Q4/Q1 order surge is not a backlog catch-up; it's compounding.

Resolved positively

EBITDA margin trajectory toward the 26.5–27.0% FY band. Q2 printed 28.1%, above the entire prior FY26 band. Management withdrew the FY26 EBITDA margin guide altogether rather than raise it — declining to formalize the upside.

Resolved positively

Whether the withdrawn FY26 effective tax rate guide gets restated. No effective tax rate guide restated in this quarter's disclosure either. The cleanup signal did not arrive.

Not resolved

Buyback pace sustained at $76M/quarter. Buyback dollar figure not disclosed in the numbers extraction from the press release. Cannot confirm the ~$76M pace held.

Continue monitoring

What to watch into next quarter

Does Q3 organic revenue print at the high end of the 5–7% guide? With organic orders +28% in Q2, a Q3 organic print at ~7% (or above) would confirm order-to-revenue conversion is on schedule and set up a third consecutive FY26 organic raise. A print at 5% would suggest conversion timing is stretched into Q4/FY27.

Whether Q3 organic orders growth holds double-digit levels. +28% is unlikely to repeat, but sustaining +15% or better on the tougher comp would confirm the demand inflection is durable. A pull-back to mid-single-digits would flag Q2 as a peak.

HST organic growth in Q3 — first quarter with two full quarters of post-Mott clean comps. Any print at or above +10% organic maintains the "acceleration" narrative; a step-down toward mid-single-digits would revert HST to the "structural mid-single-digit" framing.

Does the FY26 EBITDA margin guide get reinstated at Q3 — and at what level? Q2 actual of 28.1% is materially above the withdrawn 26.5–27.0% band. Reinstatement at 27.5%+ formalizes the operating leverage; continued silence signals management is preserving flexibility on H2 mix or reinvestment.

Effective tax rate re-disclosure. Absent for two consecutive quarters now. Its return would allow cleaner FY26 EPS bridge math; continued absence is a minor governance flag.

First look at FY27 organic and margin framing on the Q3 or Q4 call. With FY26 organic now guided at 5–6% and the FY26 EBITDA margin band withdrawn, initial FY27 framing will be the highest-signal event on the calendar — particularly whether management commits to a margin range above 27% as the starting point.

Sources

IDEX Q2 FY2026 press release / 8-K exhibit 99.1: https://www.sec.gov/Archives/edgar/data/832101/000083210126000019/iex-20260630xex991.htm

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