Ecolab has updated its 2026 financial guidance to reflect the close of the CoolIT Systems acquisition and associated short-term costs. The company now expects 2026 adjusted diluted earnings per share (EPS) to range between $8.03 and $8.23, representing growth of 7% to 9% versus 2025. This adjustment accounts for non-cash amortization and financing costs related to the transaction, which closed earlier than expected and positions Ecolab to offer end-to-end solutions across the AI value chain.

Second Half 2026 Outlook

For the second half of 2026, Ecolab projects organic sales growth to accelerate to the 6% to 7% range. This momentum, driven by an expanding organic gross margin and continued strong productivity, is expected to result in underlying EPS growth of 14% to 15% for Ecolab’s base business. However, short-term impacts from the CoolIT acquisition are expected to result in a $0.20 per share impact in each of the third and fourth quarters of 2026. Consequently, adjusted diluted EPS growth for the second half of the year is forecast at 4% to 5%.

Long-Term Growth Projections

Beyond 2026, Ecolab expects organic sales to grow 5% to 7% annually. The company anticipates adjusted operating income margin expansion of 100 to 150 basis points as it moves well beyond its 20% operating income margin target. Adjusted EPS growth, including the contribution from CoolIT, is projected to accelerate to 12% to 15% as contributions from the high-growth, high-margin acquisition increase and amortization from the Nalco acquisition rolls off in 2027.

Citigroup analyst Patrick Cunningham has maintained a Buy rating on Ecolab (NYSE: ECL) and increased the price target to $330 from $325. The adjustment reflects a revised outlook on the company's stock performance.

The updated price target suggests potential upside from current levels. Ecolab continues to be viewed favorably by Citigroup within its coverage universe.