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SWORDS, Ireland--(BUSINESS WIRE)--Trane Technologies plc (NYSE: TT) a global climate innovator, today announced that company leadership will participate in a fireside chat at the Morgan Stanley Laguna Conference. They will speak at 10:45 a.m. PST on Tuesday, September 15, 2026. The live webcast will be accessible on the Trane Technologies website at www.tranetechnologies.com under the investor relations section. An archive of the webcast will be available for 30 days following the event. About.

Key Takeaways Trane Technologies' bookings jumped 37% as backlog hit a record $12.1B, up roughly 70% year over year.TT trades at 27.24X forward earnings, above its sub-industry and five-year median.TT's Q2 adjusted margin fell 60 bps to 19.7%, while EMEA revenue dropped 4% and margin fell 420 bps. Trane Technologies plc (TT - Free Report) enters the second half of 2026 with strong demand signals. Record bookings, a much larger backlog and rising earnings expectations give the company substantial revenue visibility.

The counterweight is valuation. TT already trades above several benchmarks, while inflation, reinvestment and EMEA weakness are pressuring margins. That makes the investment case less about growth durability and more about the price investors are paying for it.

TT’s Backlog Supports a Strong Growth CaseSecond-quarter organic bookings increased 37%, while backlog reached a record $12.1 billion, up roughly 70% year over year. The enterprise book-to-bill ratio reached 123%, and every operating segment finished above 100%, meaning orders exceeded revenues across the portfolio.

Demand was especially strong in Americas Commercial HVAC, where bookings rose 50% and applied equipment orders increased 130%. The business ended the quarter with backlog up about 90%, while demand remained broad-based across data centers, schools, offices, warehouses and high-tech industrial projects.

Trane’s Earnings Outlook Keeps RisingAdjusted earnings increased 11.1% year over year to $4.31 per share in the second quarter. Revenues rose 10.6% to $6.35 billion, with both results exceeding the Zacks Consensus Estimate.

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                                                                  Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 revenues is $23.57 billion, implying growth of about 10.5%. The EPS estimate for the current fiscal year has increased 2.8% over the past four weeks. Management also raised full-year adjusted continuing earnings guidance to $15.20-$15.30 per share.

TT’s Premium Multiple Raises the BarTT trades at 27.24X forward 12-month earnings. That compares with 21.22X for the Zacks sub-industry; it also trades above its five-year median multiple of 26.83X. Investors are therefore paying a premium not only to broader benchmarks but also to TT’s own longer-term valuation history, leaving less room for execution setbacks.

                                                                 Image Source: Zacks Investment Research

Trane Faces Margin Pressure and EMEA RiskSecond-quarter adjusted operating margin declined 60 basis points (bps) year over year to 19.7% despite 9% organic revenue growth. Inflation and elevated business reinvestment outweighed the benefit of volume growth and positive pricing, and management expects price versus total inflation to remain unfavorable in the second half.

EMEA adds another layer of risk. Organic revenues fell 4% and adjusted operating margin declined 420 basis points to 13.1%. Management expects the Middle East conflict to reduce second-half revenue by about $100 million and operating income by about $30 million. Carrier Global Corporation (CARR - Free Report) is another global provider of intelligent climate and energy solutions, making it a relevant HVAC comparison. Johnson Controls International plc (JCI - Free Report) sells commercial HVAC equipment, controls and building-management systems, adding another competitive reference point for Trane’s commercial building business.

TT’s Growth and Momentum Scores Support PatienceTT’s growth case remains strong, but the premium multiple and margin pressures make patience reasonable at current levels. The company has substantial backlog visibility and improving estimates, yet the valuation already prices in a meaningful degree of optimism.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It also has a Growth Score of B, Momentum Score of A, Value Score of D and VGM Score of B. The growth and momentum grades are favorable, while the weaker Value Score captures the valuation trade-off. The Zacks Rank points to a more measured stance rather than a fresh buy signal.

Key Takeaways Trane Technologies shares rose 10.9% Y/Y, while 2026 earnings are projected to increase 16.8%. Eaton collaboration could lift TT's AI data center position with up to 15% better energy efficiency. TT invested $348 million in R&D, launched 110 new products and continued dividends $ share repurchases. Shares of Trane Technologies plc (TT - Free Report) have had an impressive run over the past year. The stock has risen 10.9% compared with the industry's 1% growth. The Zacks S&P 500 composite rose 23% during the said time frame.

The company’s third-quarter 2026 earnings are expected to increase 20.9% year over year. Earnings for 2026 and 2027 are projected to rise 16.8% and 14.16% year over year, respectively. Revenues are expected to increase 10.54% in fiscal 2026 and 8.7% in fiscal 2027.

Image Source: Zacks Investment Research

Factors Favoring TTTT’s collaboration with Eaton is a positive development that could strengthen its position in the rapidly expanding artificial intelligence (AI) data center market. The integrated power and cooling reference design is expected to improve energy efficiency by up to 15%, reduce installation costs by up to 30% and cut copper use by up to 80%. These benefits could potentially driving demand for Trane Technologies’ thermal management solutions as AI infrastructure investment accelerates.

Trane Technologies’ commitment toward sustainability is commendable, supported by its strong focus on an inclusive and supportive workplace culture. Its recognition by Forbes, Great Place to Work and Disability:IN highlights its efforts to promote diversity, employee development and inclusion, which could aid talent retention, strengthen employee engagement and support long-term innovation and business growth.

Moreover, Trane Technologies’ 2025 sustainability progress underscores the strength of its climate-focused growth strategy, with significant reductions in operational emissions, increased renewable energy use and rising demand for circular products. The company’s $348 million R&D investment and launch of 110 new products further support innovation, while its sustainability initiatives could strengthen customer relationships, improve operational efficiency and create long-term growth opportunities.

The company has demonstrated a strong commitment to its shareholders through consistent dividend payments and share repurchases, despite the fluctuations in its cash position. TT paid dividends of $683.7 million, $757.5 million and $837.3 million, while repurchasing shares worth $669.3 million, $1.3 billion and $1.5 billion in 2023, 2024 and 2025, respectively. This consistency underscores its dedication to creating long-term value for investors. In the second quarter of 2026, TT declared a quarterly dividend of $1.05 per share. The payout has increased more than 98% since March 2020.

TT had a current ratio (a measure of liquidity) of 1.1 in the first quarter of 2026, which improved marginally from the preceding quarter's 1.09 due to an increase in cash reserves. A current ratio above 1 enables the company to pay off short-term obligations efficiently.

Key Risks to WatchTrane Technologies  operates in a highly competitive environment, while continued geopolitical uncertainty and trade tensions are adding to the broader macroeconomic challenges. Rising geopolitical risks can disrupt global supply chains, increase input and operating costs, and create uncertainty around customer investment decisions. Such volatility, coupled with uneven economic growth and changing trade policies, could pressure demand, margins and overall business prospects.

Trane Technologies currently carries a Zacks Rank #3 (Hold).

Stocks to ConsiderA couple of better-ranked stocks in the broader Business Services sector are Healthcare Services Group (HCSG - Free Report) and Thomson Reuters (TRI - Free Report) .

Healthcare Services sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

HCSG has an encouraging earnings surprise history, surpassing the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 57.25%.

Thomson Reuters also carries a Zacks Rank #2 (Buy) at present. It has an encouraging earnings surprise history, surpassing the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 2.67%.

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Stock to Watch: Trane Technologies (TT - Free Report) Founded in 1885 and headquartered in Swords, Ireland, Trane Technologies is a designer, manufacturer, seller and servicer of climate control products for HVAC and transport solutions. The company distributes its products through branch sales offices, dealers and distributors in the United States and through subsidiary sales and service companies in other parts of the world. Trane generated around 81% of its revenues from the United States and the rest from more than 100 other countries. With no customer accounting for more than 10% of revenues, the company’s business does not suffer on account of any single customer of group of customers.

TT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. TT has a Growth Style Score of B, forecasting year-over-year earnings growth of 16.8% for the current fiscal year.

For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.37 to $15.25 per share. TT boasts an average earnings surprise of +2.1%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TT should be on investors' short list.

The Toro Company: A Baby Bull Market Is Gaining TractionTrane Technologies NYSE: TT raised its full-year revenue and earnings outlook after reporting second-quarter growth in bookings, revenue and adjusted earnings per share, supported by demand in commercial HVAC, services and residential markets.

Chair and CEO Dave Regnery said enterprise organic bookings rose 37% in the quarter, driving a record backlog of $12.1 billion, up 70% from a year earlier. Organic revenue increased 9%, while adjusted EPS grew 11%.

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Dividends Are Rising: 3 Foreign Stocks Boosting PayoutsThe company now expects full-year organic revenue growth of approximately 9% and adjusted EPS of $15.20 to $15.30. For the third quarter, Trane expects approximately 10% organic revenue growth and adjusted EPS of about $4.70.

Commercial HVAC Bookings Drive Record Backlog Commercial HVAC was the primary source of strength, particularly in the Americas. Regnery said Americas commercial HVAC bookings rose 50% year over year to an all-time high, while organic revenue increased by the low teens. Applied bookings rose 130%, marking the fourth consecutive quarter in which applied bookings exceeded 100% growth. On a two-year stacked basis, applied bookings have increased more than fourfold, he said.

3 Under-the-Radar Oil Stocks to Keep Your Eye OnAbout 90% of the company’s backlog is in commercial HVAC, according to Regnery. Approximately $6 billion of backlog is scheduled for 2027 and beyond, providing visibility beyond the current year.

Applied revenue grew more than 40% in the second quarter, and the company expects that growth rate to continue in the second half based on its current guidance, Regnery said. He added that Trane does not expect to turn away orders because of capacity limitations, citing a fourfold expansion of applied capacity during the past three years, along with continuing lean initiatives, brick-and-mortar investments and acquisitions.

Chief Operating Officer Donny Simmons said the company booked four orders greater than $100 million during the quarter, including one at Stellar Energy. Trane acquired Stellar, a provider of modular chiller plants, and expects the business to generate approximately $500 million of revenue in 2026 from the backlog it brought into the company.

Regnery said Stellar is currently focused almost entirely on data centers but has applications in other verticals. While the company previously expected the acquisition to be modestly accretive to EPS this year, he said Trane now expects it to be flat for EPS in 2026 as it pulls forward investments to implement its operating system and support future growth.

Data Center Demand Broadens, With Focus on Thermal Management Management said data center demand remains important but emphasized that commercial HVAC growth was broad-based. Regnery said Trane tracks 14 verticals in the Americas, all of which posted booking growth of more than 20% during the quarter. On a year-to-date basis, 11 of the 14 verticals recorded order growth, with most of those increasing at double-digit rates.

The company is working with hyperscale and colocation customers on data center designs, including the full thermal-management system rather than only chillers, Simmons said. This can include chillers, air handlers and coolant distribution units, or CDUs.

Regnery said the market is increasingly weighted toward air-cooled systems and closed-loop designs, rather than evaporative cooling. He said Trane’s liquid cooling business is performing, that the LiquidStack acquisition is exceeding expectations, and that its pipeline is strong. The company did not provide a detailed breakout of CDU backlog or revenue.

Management acknowledged that construction schedules can shift as data center operators deal with site and power-connection requirements. Still, Simmons said the company has confidence in its backlog and incorporates an allowance for normal project “leakage” or breakage into its guidance.

Regional Trends and Margin Outlook In EMEA, the Middle East conflict pressured results. CFO Chris Kuehn said the Middle East represents less than 3% of enterprise revenue but nearly 15% of the EMEA segment. Excluding the Middle East, EMEA bookings grew by the mid-teens and revenue was up by the low single digits, he said.

Revenue in the Middle East was down about 30% in the second quarter, and Trane expects a similar decline in the second half. The company took cost actions at the end of June, including rightsizing positions and infrastructure. Kuehn said those actions should move the expected second-half deleverage into gross margins rather than above gross margins.

Asia-Pacific produced bookings growth of 31% and organic revenue growth of 10% during the quarter. Regnery said China remains dynamic, while the rest of Asia is growing. The company is increasing channel investments in markets including India, Malaysia and Thailand.

Trane expects margins to strengthen in the second half. Kuehn said the company expects roughly 50 basis points of year-over-year margin expansion in the third quarter and more than a point of expansion in the fourth quarter, led primarily by the Americas. EMEA margins are expected to remain under pressure because of the Middle East revenue decline.

The company said it is investing in capacity, innovation and operational excellence, which affected near-term leverage but is intended to support longer-term growth. Kuehn said price versus inflation was a headwind in the second quarter and is expected to remain a smaller headwind through the rest of the year.

Residential, Transport and Capital Allocation Residential bookings increased by the high 20s and organic revenue grew by the low teens in the quarter, exceeding management’s expectations. Kuehn said year-to-date sell-in was approximately equal to sell-through, and inventory at independent wholesale distributors was at an appropriate level at quarter-end.

Regnery said the residential business is primarily focused on replacement demand, with residential new construction representing a share in the teens as a percentage of the business. Trane now expects residential revenue to grow by the mid-single digits for the full year after previously anticipating a potentially flat market.

For Thermo King transport refrigeration, management expects market fundamentals to improve in late 2026 and support a multiyear recovery. Regnery cited sustained high rejection rates, improving spot-to-contract spreads and utilization rates that have trended positively for 10 months.

Trane reiterated a planned 2026 capital deployment range of $2.8 billion to $3.3 billion. The company increased its annualized dividend by 12% earlier this year to $4.20 per share and repurchased approximately $840 million of stock year to date. About $3.8 billion remains under its repurchase authorization.

Management expects capital expenditures to equal 2% to 3% of revenue in 2026, supporting capacity expansion and other investments.

About Trane Technologies (NYSE:TT)Trane Technologies NYSE: TT is a global climate solutions company focused on heating, ventilation and air conditioning (HVAC) and transport refrigeration systems. The company develops, manufactures and sells a broad range of climate-control products under well-known brands, including commercial and residential HVAC equipment, building management systems and controls, and transport refrigeration units. Its product portfolio spans rooftop and packaged units, chillers, furnaces, air handlers, compressors, and related components designed for commercial buildings, industrial facilities, residences and transportation applications.

In addition to equipment, Trane Technologies provides lifecycle services that include installation, maintenance, parts, retrofit and aftermarket support, as well as digital and controls solutions for building performance and energy management.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways Trane Technologies topped Q2 estimates as revenues rose 10.6% and adjusted earnings increased 11.1% y/y.TT's organic bookings gained 37%, while backlog hit a record $12.1 billion, up roughly 70% y/y.Trane Technologies raised 2026 revenue and earnings guidance on record backlog and demand momentum. Trane Technologies plc (TT - Free Report) reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.

TT’s adjusted earnings of $4.31 per share topped the Zacks Consensus Estimate by 0.9% and increased 11.1% from the year-ago quarter’s level. Revenues of $6.35 billion surpassed the consensus estimate by 2.9% and rose 10.6% year over year.

The results benefited from strong commercial HVAC demand and solid execution. Organic bookings increased 37%, while backlog reached a record $12.1 billion, up roughly 70% year over year and providing substantial visibility into future growth.

TT’s shares have risen 2% over the past year against the industry’s 6% decline. The Zacks S&P 500 composite has risen 17.9% over the same time frame.

TT Benefits From Exceptional Demand MomentumReported bookings climbed 39% to $7.82 billion, while the enterprise book-to-bill ratio was 123%. Each operating segment posted a ratio above 100%, indicating that new orders exceeded revenues during the quarter.

Americas Commercial HVAC was the primary growth engine. Bookings advanced 50%, including a 130% increase in applied equipment orders. Demand remained broad-based across data centers, schools, offices, warehouses and high-tech industrial projects. The business exited the quarter with backlog up about 90%.

Global applied bookings nearly doubled, while services continued to account for roughly one-third of total revenues. Services revenues have achieved a low-teens compound annual growth rate since 2020, strengthening the company’s recurring and higher-value revenue base.

Trane Technologies Posts Broad Revenue GrowthOrganic revenues rose 9%, reflecting high-single-digit equipment growth and continued strength in services. Volume gains and positive pricing supported the top line, although inflation and elevated reinvestment limited profit conversion.

Americas revenues increased 12% to $5.27 billion and advanced 11% organically. Commercial HVAC revenues grew in the low teens, led by applied solutions, which increased more than 40%. Residential HVAC revenues also rose in the low teens, while transport revenues declined by low double digits as expected.

The company raised its 2026 residential revenue outlook to mid-single-digit growth following strong first-half performance and healthy channel inventories. Transport demand is expected to recover later in 2026, with healthier growth anticipated in the fourth quarter.

TT's Profit Growth Comes With Margin PressureAdjusted operating income increased 7% to $1.25 billion. However, the adjusted operating margin contracted 60 basis points to 19.7%, as inflation and increased investments more than offset volume growth and pricing.

Adjusted EBITDA rose 7% to $1.34 billion, while the related margin declined 70 basis points to 21.1%. The company continued investing in production capacity, product innovation, factory automation and operational excellence to support its expanding backlog.

GAAP operating income increased 5% to $1.22 billion, but the GAAP operating margin fell 100 basis points to 19.3%. GAAP continuing earnings were $4.20 per share, up 9% from the prior-year quarter.

Trane Technologies Sees Mixed Regional ResultsAmericas adjusted operating income increased 11% to $1.17 billion. The adjusted operating margin declined 30 basis points to 22.1%, primarily reflecting accelerated business investments intended to support future growth.

EMEA revenues fell 1% to $697.6 million and declined 4% organically. Adjusted operating income decreased 26% to $91.4 million, while the margin contracted 420 basis points to 13.1%. Conflict in the Middle East reduced operating income by approximately $30 million, prompting cost actions late in the quarter.

Asia Pacific revenues increased 11% to $384.6 million and rose 10% organically. Organic bookings jumped 31%, supported by strong demand outside China. Adjusted operating income increased 8% to $80.8 million, though channel investments contributed to a 60-basis-point margin decline.

TT Generates Robust Free Cash FlowCash from continuing operating activities reached $1.73 billion in the first six months of 2026, up from $1.04 billion a year earlier. Free cash flow nearly doubled to $1.60 billion from $841.4 million, aided by improved working capital management.

Trane Technologies ended June with $1.32 billion in cash and $4.62 billion in debt. Through July, it deployed or committed approximately $1.9 billion, including $690 million for dividends, $340 million for acquisitions and investments, and $840 million for share repurchases.

The company remains on track to deploy $2.8-$3.3 billion of capital in 2026. Capital expenditures are expected to equal 2-3% of revenues as management expands capacity and supports innovation initiatives.

Trane Technologies Raises Its 2026 GuidanceManagement now expects full-year reported revenue growth of approximately 11.5%, up from the prior projection of 9.5%. Organic revenue growth is forecast at roughly 9% compared with the earlier expectation of about 7%.

Adjusted continuing earnings guidance increased to $15.20-$15.30 per share from $14.75-$14.95. The Zacks Consensus Estimate for the same is pegged at $14.89 per share.

The company expects third-quarter organic revenue growth of approximately 10% and adjusted earnings of about $4.70 per share.

The raised outlook reflects record backlog, accelerating Commercial HVAC revenues and improving residential and transport trends. Management expects second-half organic revenue growth of approximately 11.5%, with adjusted earnings growth of about 23.5% at the guidance midpoint.

Trane Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

WEX Inc. (WEX - Free Report) reported better-than-expected second-quarter 2026 results. WEX’s adjusted earnings of $5.35 per share outpaced the Zacks Consensus Estimate by 5.3% and increased 35.4% from the year-ago quarter. WEX’s revenues of $753.5 million topped the consensus estimate by 1.8% and improved 14.2% year over year.

Waste Connections, Inc. (WCN - Free Report) posted impressive second-quarter 2026 results. WCN’s adjusted earnings of $1.50 per share outpaced the consensus mark by 11.1% and rose 16.3% from the year-ago quarter. WCN’s total revenues of $2.56 billion surpassed the consensus mark by 1.1% and increased 6.4% year over year.

Trane Technologies (TT - Free Report) came out with quarterly earnings of $4.31 per share, beating the Zacks Consensus Estimate of $4.27 per share. This compares to earnings of $3.88 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +0.94%. A quarter ago, it was expected that this manufacturer would post earnings of $2.53 per share when it actually produced earnings of $2.63, delivering a surprise of +3.95%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Trane Technologies, which belongs to the Zacks Technology Services industry, posted revenues of $6.35 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.86%. This compares to year-ago revenues of $5.75 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Trane Technologies shares have added about 14.8% since the beginning of the year versus the S&P 500's gain of 6.9%.

What's Next for Trane Technologies?While Trane Technologies has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Trane Technologies was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.55 on $6.33 billion in revenues for the coming quarter and $14.89 on $23.24 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Zeta Global Holdings (ZETA - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.

This cloud-based marketing technology company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +42.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Zeta Global Holdings' revenues are expected to be $420.25 million, up 36.3% from the year-ago quarter.

Key Takeaways Trane Technologies is expected to report Q2 2026 results on July 30 before the opening bell.TT's Q2 revenues are expected to rise on strong Americas HVAC demand and the Stellar Energy acquisition.TT has a 0.64% Earnings ESP and a Zacks Rank #3, signaling potential for an earnings beat. Trane Technologies plc (TT - Free Report) is set to report second-quarter 2026 earnings on July 30, before the opening bell.

The company’s earnings surprise history has been impressive. It surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an earnings surprise of 2.7%, on average. 

Q2 Expectations for TTThe Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $6.18 billion, indicating a rise of 7.5% from the year-ago quarter's reported figure.

The Zacks Consensus Estimate for America's revenues is pegged at $5.21 billion, indicating an 11.1% increase from the year-ago figure. The consensus mark for revenues from the EMEA is pegged at $686.7 million, indicating a 3% year-over-year decline. For Asia Pacific, the consensus mark is pegged at $354.21 million, indicating a 2.3% increase from the year-ago figure.

Robust demand for innovative products and services across data centers, higher education, healthcare and government markets in the Commercial Heating, Ventilation, and Air Conditioning (HVAC) segment, especially in the Americas, is expected to have boosted the company’s top line in the June-end quarter of 2026. The recent acquisition of Stellar Energy, a provider of modular data center cooling solutions, is anticipated to have strengthened Trane Technologies' position in the fast-growing data center market.

The consensus estimate for earnings is pegged at $4.27 per share, implying year-over-year growth of 10.1%. We expect optimized operational execution, robust bookings and backlogs to have benefited the bottom line in the quarter.

What Our Model Says About TTOur proven model predicts an earnings beat for Trane Technologies this time around. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Trane Technologies currently has an Earnings ESP of +0.64% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to ConsiderHere are a few stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.

Visa Inc. (V - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank of 3. The company is scheduled to report its third-quarter fiscal 2026 results on July 28.

The Zacks Consensus Estimate for Visa’s third-quarter fiscal 2026 revenues is pegged at $11.37 billion, indicating year-over-year growth of 11.8%. For earnings, the consensus mark is pegged at $3.23 per share, implying an 8.4% increase from the year-ago quarter’s actual.

V beat the consensus estimate in each of the trailing four quarters, with the average earnings surprise being 3.2%.

TransUnion (TRU - Free Report) has an Earnings ESP of +0.73% and a Zacks Rank of 3. The company is scheduled to declare its second-quarter 2026 results on July 28.

The Zacks Consensus Estimate for TRU’s second-quarter 2026 revenues is pegged at $1.29 billion, indicating 13% year-over-year growth. The consensus estimate for earnings is pegged at $1.14 per share, implying a year-over-year increase of 5.6%.

TRU also surpassed the consensus estimate in each of the trailing four quarters, delivering an average earnings surprise of 6.3%.

Posted by Defense World Staff on Jul 25th, 2026

Aristotle Capital Management LLC lowered its stake in shares of Trane Technologies plc (NYSE:TT – Free Report) by 26.4% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 245,555 shares of the company’s stock after selling 88,000 shares during the period. Aristotle Capital Management LLC owned approximately 0.11% of Trane Technologies worth $102,333,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Bell Investment Advisors Inc raised its holdings in Trane Technologies by 12.2% in the first quarter. Bell Investment Advisors Inc now owns 203 shares of the company’s stock valued at $85,000 after buying an additional 22 shares during the period. Fiduciary Family Office LLC raised its position in Trane Technologies by 1.5% in the fourth quarter. Fiduciary Family Office LLC now owns 1,573 shares of the company’s stock valued at $612,000 after purchasing an additional 23 shares during the period. Foster Dykema Cabot & Partners LLC lifted its stake in shares of Trane Technologies by 10.6% during the fourth quarter. Foster Dykema Cabot & Partners LLC now owns 239 shares of the company’s stock worth $93,000 after purchasing an additional 23 shares in the last quarter. Bridges Investment Management Inc. boosted its position in shares of Trane Technologies by 1.6% in the fourth quarter. Bridges Investment Management Inc. now owns 1,542 shares of the company’s stock worth $600,000 after buying an additional 24 shares during the period. Finally, Cornerstone Planning Group LLC grew its stake in shares of Trane Technologies by 14.5% in the first quarter. Cornerstone Planning Group LLC now owns 190 shares of the company’s stock valued at $79,000 after buying an additional 24 shares in the last quarter. Institutional investors and hedge funds own 82.97% of the company’s stock.

Insider Activity at Trane Technologies In other Trane Technologies news, insider Donald E. Simmons sold 4,593 shares of the firm’s stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $500.00, for a total value of $2,296,500.00. Following the sale, the insider owned 3,819 shares in the company, valued at approximately $1,909,500. This trade represents a 54.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.43% of the company’s stock.

Trane Technologies Price Performance Shares of NYSE TT opened at $481.09 on Friday. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.10 and a quick ratio of 0.77. The firm has a market capitalization of $106.35 billion, a PE ratio of 37.21, a P/E/G ratio of 2.21 and a beta of 1.19. Trane Technologies plc has a 1-year low of $348.06 and a 1-year high of $505.87. The business’s fifty day moving average price is $470.13 and its two-hundred day moving average price is $449.87.

Trane Technologies (NYSE:TT – Get Free Report) last announced its quarterly earnings results on Friday, May 1st. The company reported $2.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.53 by $0.10. Trane Technologies had a net margin of 13.41% and a return on equity of 35.55%. The company had revenue of $4.97 billion during the quarter, compared to the consensus estimate of $4.81 billion. During the same quarter in the previous year, the company posted $2.45 earnings per share. The company’s revenue for the quarter was up 6.0% compared to the same quarter last year. On average, research analysts expect that Trane Technologies plc will post 14.89 EPS for the current year.

Trane Technologies Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be given a $1.05 dividend. The ex-dividend date is Friday, September 4th. This represents a $4.20 annualized dividend and a yield of 0.9%. Trane Technologies’s dividend payout ratio is 32.48%.

Analyst Ratings Changes Several equities analysts recently commented on the company. Evercore assumed coverage on Trane Technologies in a research report on Monday, April 13th. They set an “outperform” rating and a $535.00 price target on the stock. Citigroup lifted their price objective on shares of Trane Technologies from $525.00 to $570.00 and gave the company a “buy” rating in a research note on Friday, May 1st. Barclays upped their target price on shares of Trane Technologies from $507.00 to $585.00 and gave the company an “overweight” rating in a research note on Friday, May 1st. JPMorgan Chase & Co. raised their price target on shares of Trane Technologies from $460.00 to $476.00 and gave the company a “neutral” rating in a report on Thursday, May 14th. Finally, Royal Bank Of Canada raised their target price on Trane Technologies from $440.00 to $501.00 and gave the company a “sector perform” rating in a research note on Friday, May 1st. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $516.67.

View Our Latest Analysis on Trane Technologies

About Trane Technologies (Free Report)

Trane Technologies (NYSE: TT) is a global climate solutions company focused on heating, ventilation and air conditioning (HVAC) and transport refrigeration systems. The company develops, manufactures and sells a broad range of climate-control products under well-known brands, including commercial and residential HVAC equipment, building management systems and controls, and transport refrigeration units. Its product portfolio spans rooftop and packaged units, chillers, furnaces, air handlers, compressors, and related components designed for commercial buildings, industrial facilities, residences and transportation applications.

In addition to equipment, Trane Technologies provides lifecycle services that include installation, maintenance, parts, retrofit and aftermarket support, as well as digital and controls solutions for building performance and energy management.

Further Reading Five stocks we like better than Trane Technologies AMD and Cerbras Create A New Blueprint For Hardware Intel Earnings Reveal Whether the Chip Selloff Created a Buy CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test Plugging In: How Kinder Morgan Powers Up Profits Want to see what other hedge funds are holding TT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Trane Technologies plc (NYSE:TT – Free Report).

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Wall Street expects a year-over-year increase in earnings on higher revenues when Trane Technologies (TT - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis manufacturer is expected to post quarterly earnings of $4.27 per share in its upcoming report, which represents a year-over-year change of +10.1%.

Revenues are expected to be $6.18 billion, up 7.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.09% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Trane Technologies?For Trane Technologies, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.64%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Trane Technologies will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Trane Technologies would post earnings of $2.53 per share when it actually produced earnings of $2.63, delivering a surprise of +3.95%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Trane Technologies appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Posted by Defense World Staff on Jul 20th, 2026

Boston Common Asset Management LLC lifted its holdings in Trane Technologies plc (NYSE:TT – Free Report) by 8.3% during the first quarter, according to the company in its most recent filing with the SEC. The fund owned 19,467 shares of the company’s stock after buying an additional 1,490 shares during the quarter. Boston Common Asset Management LLC’s holdings in Trane Technologies were worth $8,113,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also modified their holdings of the company. Tucker Asset Management LLC acquired a new stake in Trane Technologies during the fourth quarter worth about $25,000. Hilton Head Capital Partners LLC acquired a new position in Trane Technologies in the fourth quarter valued at approximately $32,000. JPL Wealth Management LLC bought a new position in shares of Trane Technologies during the third quarter valued at approximately $32,000. Physician Wealth Advisors Inc. grew its holdings in shares of Trane Technologies by 192.6% during the first quarter. Physician Wealth Advisors Inc. now owns 79 shares of the company’s stock valued at $33,000 after purchasing an additional 52 shares during the last quarter. Finally, Frazier Financial Advisors LLC acquired a new stake in shares of Trane Technologies during the 1st quarter worth approximately $33,000. 82.97% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes Several brokerages recently issued reports on TT. Evercore assumed coverage on Trane Technologies in a report on Monday, April 13th. They issued an “outperform” rating and a $535.00 price target on the stock. Royal Bank Of Canada increased their target price on Trane Technologies from $440.00 to $501.00 and gave the stock a “sector perform” rating in a research report on Friday, May 1st. Citigroup raised their target price on Trane Technologies from $525.00 to $570.00 and gave the company a “buy” rating in a research note on Friday, May 1st. Sanford C. Bernstein set a $555.00 price target on shares of Trane Technologies in a report on Thursday, July 9th. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Trane Technologies in a research report on Monday, April 20th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Trane Technologies presently has an average rating of “Moderate Buy” and an average price target of $516.67.

View Our Latest Stock Analysis on TT

Trane Technologies Stock Performance TT opened at $469.59 on Monday. The company has a current ratio of 1.10, a quick ratio of 0.77 and a debt-to-equity ratio of 0.46. The business’s 50 day moving average is $469.88 and its 200-day moving average is $447.36. The stock has a market cap of $103.80 billion, a PE ratio of 36.32, a price-to-earnings-growth ratio of 2.16 and a beta of 1.19. Trane Technologies plc has a twelve month low of $348.06 and a twelve month high of $505.87.

Trane Technologies (NYSE:TT – Get Free Report) last issued its quarterly earnings data on Friday, May 1st. The company reported $2.63 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.53 by $0.10. Trane Technologies had a return on equity of 35.55% and a net margin of 13.41%.The business had revenue of $4.97 billion during the quarter, compared to analyst estimates of $4.81 billion. During the same period in the prior year, the company posted $2.45 EPS. The business’s revenue for the quarter was up 6.0% compared to the same quarter last year. On average, analysts predict that Trane Technologies plc will post 14.89 earnings per share for the current year.

Trane Technologies Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be issued a dividend of $1.05 per share. This represents a $4.20 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, September 4th. Trane Technologies’s dividend payout ratio (DPR) is 32.48%.

Insider Buying and Selling at Trane Technologies In related news, insider Donald E. Simmons sold 4,593 shares of Trane Technologies stock in a transaction dated Thursday, April 30th. The shares were sold at an average price of $500.00, for a total transaction of $2,296,500.00. Following the sale, the insider directly owned 3,819 shares in the company, valued at $1,909,500. The trade was a 54.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.43% of the stock is currently owned by corporate insiders.

Trane Technologies Company Profile (Free Report)

Trane Technologies (NYSE: TT) is a global climate solutions company focused on heating, ventilation and air conditioning (HVAC) and transport refrigeration systems. The company develops, manufactures and sells a broad range of climate-control products under well-known brands, including commercial and residential HVAC equipment, building management systems and controls, and transport refrigeration units. Its product portfolio spans rooftop and packaged units, chillers, furnaces, air handlers, compressors, and related components designed for commercial buildings, industrial facilities, residences and transportation applications.

In addition to equipment, Trane Technologies provides lifecycle services that include installation, maintenance, parts, retrofit and aftermarket support, as well as digital and controls solutions for building performance and energy management.

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SWORDS, Ireland--(BUSINESS WIRE)--Trane Technologies plc (NYSE:TT), a global climate innovator, will host a conference call to discuss its second quarter 2026 financial results on Thursday, July 30, 2026, at 10 a.m. ET. The company will issue its second quarter earnings release and earnings presentation in advance of the call; both will be available on the Trane Technologies website. A real-time, listen-only webcast of the conference call will be broadcast live over the internet. Individuals wi.

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Trane Technologies (TT - Free Report) , which belongs to the Zacks Technology Services industry.

This manufacturer has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 2.69%.

For the last reported quarter, Trane Technologies came out with earnings of $2.63 per share versus the Zacks Consensus Estimate of $2.53 per share, representing a surprise of 3.95%. For the previous quarter, the company was expected to post earnings of $2.82 per share and it actually produced earnings of $2.86 per share, delivering a surprise of 1.42%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Trane Technologies. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Trane Technologies currently has an Earnings ESP of +0.60%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

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VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Trane Technologies (TT - Free Report) Founded in 1885 and headquartered in Swords, Ireland, Trane Technologies is a designer, manufacturer, seller and servicer of climate control products for HVAC and transport solutions. The company distributes its products through branch sales offices, dealers and distributors in the United States and through subsidiary sales and service companies in other parts of the world. Trane generated around 81% of its revenues from the United States and the rest from more than 100 other countries. With no customer accounting for more than 10% of revenues, the company’s business does not suffer on account of any single customer of group of customers.

TT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. TT has a Growth Style Score of B, forecasting year-over-year earnings growth of 13.6% for the current fiscal year.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $14.84 per share. TT boasts an average earnings surprise of +2.7%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TT should be on investors' short list.

Trane Technologies (TT - Free Report) closed at $491.16 in the latest trading session, marking a +2.25% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.79%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 1.52%.

Coming into today, shares of the manufacturer had gained 7.11% in the past month. In that same time, the Business Services sector lost 0.14%, while the S&P 500 lost 1.82%.

Investors will be eagerly watching for the performance of Trane Technologies in its upcoming earnings disclosure. On that day, Trane Technologies is projected to report earnings of $4.27 per share, which would represent year-over-year growth of 10.05%. At the same time, our most recent consensus estimate is projecting a revenue of $6.16 billion, reflecting a 7.22% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.83 per share and revenue of $23.25 billion, indicating changes of +13.55% and +9.05%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Trane Technologies. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Trane Technologies is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Trane Technologies is presently being traded at a Forward P/E ratio of 32.39. This indicates a premium in contrast to its industry's Forward P/E of 17.1.

We can additionally observe that TT currently boasts a PEG ratio of 2.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services industry had an average PEG ratio of 1.46 as trading concluded yesterday.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

I give Trane Technologies a Buy rating with a $571 price target, implying 21% upside, from the current price level of $472. My main growth drivers are commercial HVAC and Stellar Energy, services and aftermarket revenue, and a recovery in residential HVAC and transport refrigeration. I estimate $3.17 incremental EPS from these growth drivers. This leads to a 2028 adjusted EPS estimate of $18.02.

Trane Technologies (TT - Free Report) closed at $483.40 in the latest trading session, marking a +2.3% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 1.09% for the day. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.91%.

Coming into today, shares of the manufacturer had gained 4.61% in the past month. In that same time, the Business Services sector lost 1.18%, while the S&P 500 gained 0.29%.

Market participants will be closely following the financial results of Trane Technologies in its upcoming release. On that day, Trane Technologies is projected to report earnings of $4.27 per share, which would represent year-over-year growth of 10.05%. At the same time, our most recent consensus estimate is projecting a revenue of $6.16 billion, reflecting a 7.22% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.83 per share and revenue of $23.25 billion, indicating changes of +13.55% and +9.05%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Trane Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.16% fall in the Zacks Consensus EPS estimate. As of now, Trane Technologies holds a Zacks Rank of #3 (Hold).

In the context of valuation, Trane Technologies is at present trading with a Forward P/E ratio of 31.86. For comparison, its industry has an average Forward P/E of 15.73, which means Trane Technologies is trading at a premium to the group.

We can additionally observe that TT currently boasts a PEG ratio of 2.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Technology Services industry had an average PEG ratio of 1.42 as trading concluded yesterday.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TT in the coming trading sessions, be sure to utilize Zacks.com.

Key Takeaways TT posted Q1 adjusted EPS of $2.63 on $4.97B revenues, beating consensus estimates.Organic bookings surged 24% and backlog reached a record $10.7B, boosting visibility for 2026.TT lifted 2026 guidance to ~9.5% reported revenue growth and $14.75-$14.95 EPS. Trane Technologies plc (TT - Free Report) delivered a solid first quarter of 2026, with adjusted earnings of $2.63 per share, beating the Zacks Consensus Estimate of $2.53 by 4%. Revenues came in at $4.97 billion, topping the consensus mark of $4.79 billion by 3.8%, while both metrics improved year over year.

Demand was a key tailwind. Organic bookings rose 24%, and the company exited the quarter with a record backlog of $10.7 billion, up more than 30% versus year-end 2025, underscoring strong visibility for the balance of the year.

TT Shows Revenue Gains Despite Margin HeadwindsTT’s reported revenues increased 6% year over year, while organic revenues grew 3%. The company benefited from volume growth and positive prices, though these positives were offset by inflationary pressures and elevated reinvestment levels across the business.

Profitability was mixed. GAAP operating income declined to $776.1 million from $818.9 million a year ago, and GAAP operating margin compressed to 15.6% from 17.5%. On an adjusted basis, operating income improved to $794.7 million, and adjusted operating margin was 16.0%, reflecting the impact of certain non-GAAP items on comparability.

Trane Technologies Rides Commercial HVAC StrengthCommercial HVAC demand stood out again, helping push enterprise book-to-bill to 135% for the quarter. Management highlighted exceptional momentum in Americas Commercial HVAC, where bookings increased approximately 40%, supported by strength in applied equipment.

That momentum is translating into backlog growth and improved forward visibility. The company pointed to a robust project environment and sustained services strength, with global services revenues growing at a double-digit rate, reinforcing the longer-cycle, higher-value opportunity tied to the installed base.

TT’s Regional Results Highlight Uneven Profit TrendsThe Americas segment remained the largest contributor, generating revenues of $4.00 billion, up 5% year over year on a reported basis and up 4% organically. Adjusted operating margin in the region improved 10 basis points to 17.9%, supported by operating execution, even as residential results created some offsetting pressure.

Results were less favorable in Europe, the Middle East, and Africa. EMEA revenues rose 12% to $639.5 million, aided by foreign exchange and acquisitions, but organic revenues dipped 1%. Adjusted operating margin fell to 11.9% from 14.5%, reflecting a tougher profitability backdrop. Asia Pacific revenues increased 5% to $331.5 million, while GAAP and adjusted operating margin improved to 22.1%, pointing to better incremental performance in the region.

Trane Technologies Delivers Stronger Cash GenerationCash generation strengthened meaningfully. Cash from continuing operating activities rose to $636.2 million through March 31, 2026, compared with $345.5 million in the prior-year period. Free cash flow increased to $573.3 million from $230.2 million, supported by improved working-capital performance.

Capital deployment stayed active. Year to date through April, the company deployed or committed about $0.9 billion, including dividends, share repurchases and M&A. On the balance sheet, cash ended March at $1.07 billion, and total debt was $4.62 billion, reflecting a continued focus on liquidity and balance-sheet flexibility.

TT Raises 2026 Guidance on Demand VisibilityManagement raised its full-year 2026 outlook, now calling for reported revenue growth of roughly 9.5% and organic revenue growth of about 7% versus 2025. The company also guided to GAAP and adjusted continuing earnings of approximately $14.75 to $14.95 per share for the year, signaling confidence in execution and demand carryover.

The earnings presentation added modeling detail, including expectations for second-quarter organic revenue growth of around 5% and adjusted earnings of roughly $4.20-$4.25 per share. Other framework items include about $235 million of interest expense, an adjusted effective tax rate near 20%, roughly 222 million diluted shares, and higher capital spending expectations of 2%-3% of 2026 revenues, reflecting stepped-up investment levels.

TT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings SnapshotsEquifax Inc. (EFX - Free Report) reported better-than-expected first-quarter 2026 results. EFX’s adjusted earnings per share of $1.86 beat the Zacks Consensus Estimate by 10.1% and increased 21.6% from the year-ago quarter. EFX’s revenues of $1.6 billion surpassed the consensus estimate by 2.3% and improved 14.4% year over year.

Rollins, Inc. (ROL - Free Report) posted impressive first-quarter 2026 results. ROL’s adjusted earnings of 24 cents per share matched the consensus mark and rose 9.1% from the year-ago quarter. ROL’s total revenues of $906.4 million surpassed the consensus mark by 1.3% and increased 10.2% year over year.

SWORDS, Ireland--(BUSINESS WIRE)--Trane Technologies plc (NYSE: TT) a global climate innovator, today announced that company leadership will participate in a fireside chat at the Wolfe Research Global Transportation & Industrials Conference. They will speak at 9:15 a.m. ET on Wednesday, May 20, 2026. The live webcast will be accessible on the Trane Technologies website at www.tranetechnologies.com under the investor relations section. An archive of the webcast will be available for 30 days.

I reiterate my buy rating on Trane Technologies (TT) as commercial HVAC demand and order momentum continue to strengthen, supporting future topline growth. Q1 saw Americas orders accelerate to 29%, with Commercial HVAC up >40% and Applied orders up >160%, boosting growth visibility into 2H26 and beyond. TT's strong domestic manufacturing footprint minimizes tariff risks, enhancing its competitive position and pricing power amid recent Section 232 tariff updates.

Trane Technologies plc (TT) Presents at Bank of America 33rd Annual Industrials, Transportation and Airlines Key Leaders Conference Transcript

Trane Technologies plc (TT) Presents at Wolfe Research 19th Annual Global Transportation & Industrials Conference Transcript

Key Takeaways Trane Technologies' shares have risen 11.6% over the past six months against the industry's 3.3% decline.TT recently reported a record backlog of $10.7B, with Americas commercial HVAC bookings up 40% year over year.TT sees strong demand for AI & cloud infrastructure cooling systems, boosted by the Stellar Energy buyout. Trane Technologies plc (TT - Free Report) , a designer, manufacturer, seller and servicer of climate control products for heating, ventilation and air conditioning ("HVAC") and transport solutions, has delivered an impressive performance over the past few months and shows potential to sustain its momentum in the near term. Therefore, if you have not taken advantage of the share price appreciation yet, you should add the stock to your portfolio.

What Makes TT an Attractive Pick?An Outperformer: A glimpse at the company’s price trend reveals that the stock has had a decent run over the past six months. Shares of Trane Technologies have risen 11.6% against 3.3% decline in the industry it belongs to.

Solid Rank: TT currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities for investors. 

Northward Estimate Revisions: Over the past 60 days, five earnings estimates for 2026 have moved northward, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2026 earnings has increased 0.5% during this period.

Impressive Earnings Surprise History: TT has an impressive earnings surprise history. The company's earnings have outpaced the Zacks Consensus Estimate in each of the past four quarters, delivering an average surprise of 2.7%.

Strong Growth Prospects: The Zacks Consensus Estimate for Trane Technologies’ second-quarter 2026 earnings is pegged at $4.27 per share, indicating 10.1% year-over-year growth. For 2026, the consensus estimate is pegged at $14.83 per share, implying 13.6% year-over-year growth.

Growth Factors: Trane Technologies’ growth is primarily driven by the strong demand for its commercial HVAC, energy-efficient solutions and data center cooling infrastructure. Rising global energy demand, sustainability trends and digitalization further support long-term growth. Robust demand in the commercial HVAC business, particularly in the Americas, is accelerating revenue generation. TT reported Enterprise organic bookings growth of 24% year over year in the first quarter of 2026, while total backlog climbed to a record $10.7 billion, up more than 30% from year-end 2025. Commercial HVAC bookings in the Americas rose approximately 40% year over year during the same period.

TT also highlighted strong demand from data centers, where customers require advanced cooling technologies and highly engineered systems designed to support rapidly expanding artificial intelligence ("AI") and cloud infrastructure. During the latest quarterly earnings conference, management stated that the acquisition of Stellar Energy Americas, Inc. in February 2026 added nearly $1 billion to the backlog and further strengthened Trane Technologies’ position in the fast-growing modular cooling market.

Past acquisitions, such as Brainbox AI, have enabled TT to achieve measurable reductions in energy consumption and improvements in sustainability by lowering carbon emissions, thereby adding considerable value to HVAC services provided to buildings.

The company’s operational excellence offsets inflation and tariff pressures. Trane Technologies reported 3% year-over-year Enterprise organic revenue growth in the last quarter, while adjusted earnings per share rose 7%. TT expects to further mitigate tariff and inflationary pressures through operational excellence initiatives, productivity improvements and pricing actions.

Trane Technologies had a current ratio (a measure of liquidity) of 1.1 in the first quarter of 2026, which improved marginally from the preceding quarter's 1.09 due to an increase in cash reserves. A current ratio of above 1 enables the company to pay off short-term obligations efficiently.

Other Stocks to ConsiderSome other top-ranked stocks in the broader Zacks  Business Services sector are FactSet Research Systems Inc. (FDS - Free Report) and TransUnion (TRU - Free Report) .

FactSet Research Systems carries a Zacks Rank #2 at present. It has a long-term earnings growth expectation of 6.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

FDS' earnings beat estimates in two of the last four reported quarters and missed twice, delivering an average surprise of 0.4%.

TransUnion also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 13.5%.

TRU's earnings beat estimates in each of the last four quarters, with the surprise being 6.3%, on average.

SWORDS, Ireland--(BUSINESS WIRE)--Trane Technologies (NYSE:TT), a global climate innovator, has been recognized for continued leadership in sustainability and climate innovation through inclusion on the Dow Jones Best-in-Class World and North American Indices and the Financial Times Europe's Climate Leaders 2026 list. The Dow Jones Best-in-Class Indices are among the longest-running global benchmarks for corporate sustainability performance. Trane Technologies has been named to the World Index.

SWORDS, Ireland--(BUSINESS WIRE)--The Board of Directors of Trane Technologies plc (NYSE:TT), a global climate innovator, declared a quarterly dividend of $1.05 per ordinary share, or $4.20 per share annualized. The dividend is payable on September 30, 2026, to shareholders of record as of September 4, 2026. Since March of 2020, Trane Technologies has raised the quarterly dividend by more than 98 percent. Trane Technologies has paid consecutive quarterly cash dividends on its common shares sinc.