SAP stock (NYSE: SAP) fell in Thursday’s pre-market trading as investors reacted to a spending shock from rival Oracle, not to any fresh bad news from SAP itself.
Oracle shares dropped about 9% after its earnings call, while SAP slid more than 3% in early US trading.
The trigger was Oracle earnings where the company said capital expenditure could reach as much as $95 billion in fiscal 2027, far above the $67.7 billion analysts had expected.
For software investors, Oracle’s strong cloud quarter was overshadowed by a bigger concern: the rising cost of staying competitive in the AI race.
Oracle did not report weak demand. In fact, it reported the opposite.
The company’s fourth-quarter cloud revenue rose 47% to a record $9.9 billion, helped by booming demand for AI computing power.
Oracle Cloud Infrastructure revenue jumped 93%, and remaining performance obligations, a measure of future contracted revenue, climbed to $638 billion.
But investors focused on the cost of the impressive numbers.
Oracle’s capital expenditure surged 162% in fiscal 2026 to $55.7 billion, above its own $50 billion target.
For fiscal 2027, the company now expects capex of up to $95 billion.
CFO Hilary Maxson said around $70 billion would be Oracle’s own spending, with another $20 billion to $25 billion expected to be repaid by customers.
The cash-flow picture added to the concern as Oracle generated negative free cash flow of $23.7 billion in fiscal 2026 as it poured money into data centres and AI infrastructure.
Maxson also warned on the earnings call that gross margins would “step down” this fiscal year as the data-centre buildout accelerates.
Oracle CEO Clay Magouyrk tried to frame the spending as a sign of strength.
He said the company’s first-quarter fiscal 2027 delivery was approaching one gigawatt of capacity, almost matching what Oracle delivered in the previous four quarters combined.
Also read: Why Oracle earnings are significant for Intel, AMD stock
SAP’s weakness appears less about company-specific news and more about sector read-through from Oracle’s guidance.
The two companies overlap across enterprise software, cloud services, databases, ERP and AI-enabled business applications.
Oracle’s plan to spend as much as $95 billion on AI infrastructure, therefore, raises a broader question for the sector: whether rivals will also face higher investment requirements to defend growth and market share.
That is why SAP was caught in the move.
The company has not announced a comparable capex plan or issued a fresh profit warning, but investors are pricing in the possibility that competitive pressure from AI infrastructure spending could eventually weigh on margins across enterprise software.
The fear is simple: if Oracle’s AI infrastructure push works, other enterprise software companies may need to spend more aggressively to compete.
If it does not work, the whole sector may have to deal with investor skepticism over whether AI spending is producing enough returns.
Jacob Bourne, an analyst at eMarketer, summed up the tension in comments reported by Reuters.
“The demand is real, with cloud infrastructure revenue and backlog growing fast. But the funding question is getting harder, not easier, with capex coming in well above estimates and free cash flow still negative,” he said.
There is also a second concern hanging over the software sector. AI tools are increasingly capable of automating tasks that traditional enterprise software products were built to manage.
That does not mean SAP’s business is broken, but investors are becoming more sensitive to any sign that AI may change the economics of enterprise software.
The Fidelity High Dividend ETF (FDVV) and the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) both focus on dividend-paying U.S. stocks, but their portfolios are built very differently. That difference can shape not just how much income investors receive, but how reliable that income may be over time.
WOKING, England--(BUSINESS WIRE)--Linde plc (Nasdaq: LIN) today reported first-quarter 2026 net income of $1,857 million and diluted earnings per share of $3.98, up 11% and up 13%, respectively. Excluding Linde AG purchase accounting impacts and cost reduction program and other charges, adjusted net income was $2,019 million, up 7% versus prior year. Adjusted earnings per share was $4.33, 10% above prior year.
Linde’s sales for the first quarter were $8,781 million, up 8% versus prior year including 5% favorable currency impact. Compared to prior year, underlying sales increased 3% from 2% price attainment and 1% volumes, primarily from project start-ups. Acquisitions increased sales by 1%.
First-quarter operating profit was $2,439 million. Adjusted operating profit of $2,630 million was up 8% versus prior year led by higher price and continued productivity initiatives across all segments. Adjusted operating profit margin was 30.0%.
First-quarter operating cash flow of $2,240 million increased 4% versus prior year. After capital expenditures of $1,342 million, free cash flow was $898 million. During the quarter, the company returned $1,545 million to shareholders through dividends and stock repurchases, net of issuances.
Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, “Linde employees delivered another solid quarter with 10% EPS growth, 30% operating margin and 24% return on capital under increasingly challenging global conditions. These results underscore the resiliency of our operating model, discipline of capital allocation and perseverance of management actions.”
Lamba continued, “Looking ahead, I’m confident the Linde team will continue to create shareholder value in any environment.”
For the second quarter of 2026, Linde expects adjusted diluted earnings per share in the range of $4.40 to $4.50, up 8% to 10% versus prior-year quarter or 7% to 9% when excluding estimated favorable currency of 1%.
For the full year 2026, the company expects adjusted diluted earnings per share to be in the range of $17.60 to $17.90, up 7% to 9%, assuming favorable currency of 1%. Full-year capital expenditures are expected to be in the range of $5.0 billion to $5.5 billion to support growth and maintenance requirements including the $7.1 billion contractual sale of gas project backlog.
First-Quarter 2026 Results by Segment
Americas sales of $4,025 million were up 10% versus prior year. Compared with first quarter 2025, underlying sales increased 6%, driven by 4% higher pricing and 2% higher volumes, primarily in the electronics, manufacturing and metals and mining end markets. Operating profit of $1,272 million was 31.6% of sales, 60 basis points above prior year.
APAC (Asia Pacific) sales of $1,701 million were up 11% versus prior year. Compared with first quarter 2025, underlying sales increased 6%, driven by 6% volumes primarily in the electronics, and chemicals and energy end markets and project startups. Operating profit of $477 million was 28.0% of sales, 130 basis points below prior year.
EMEA (Europe, Middle East & Africa) sales of $2,171 million were up 7% versus prior year. Compared with first quarter 2025, underlying sales decreased 2%, driven by 1% higher pricing and 3% lower volumes, primarily in the chemicals and energy and manufacturing end markets. Operating profit of $784 million was 36.1% of sales, 60 basis points above prior year.
Linde Engineering sales were $517 million, down 8% versus prior year, and operating profit was $101 million or 19.5% of sales. Order intake for the quarter was $640 million and third-party sale of equipment backlog was $2.8 billion.
Earnings Call
A teleconference on Linde’s first-quarter 2026 results is being held today at 9:00 am EDT.
Materials to be used in the teleconference are also available on the website.
About Linde
Linde is a leading global industrial gases and engineering company with 2025 sales of $34 billion. We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain, decarbonize and protect our planet. Linde serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde’s industrial gases and technologies are used in countless applications, enabling space exploration and launch technologies, delivering ultra-high-purity and specialty gases for semiconductor manufacturing, providing life-saving medical oxygen and enabling clean hydrogen production and carbon capture to reduce greenhouse gas emissions. Linde also delivers state-of-the-art gas processing solutions to support customer growth, efficiency improvements and emissions reductions.
For more information about the company and its products and services, please visit www.linde.com
Adjusted amounts, free cash flow and return on capital are non-GAAP measures. See the attachments for a summary of non-GAAP reconciliations and calculations for adjusted amounts.
Attachments: Summary Non-GAAP Reconciliations, Statements of Income, Balance Sheets, Statements of Cash Flows, Segment Information and Appendix: Non-GAAP Measures and Reconciliations.
*Note: We are providing adjusted earnings per share (“EPS”) guidance for 2026. This is a non-GAAP financial measure that represents diluted earnings per share from continuing operations (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges, and the impact of other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort.
Forward-looking Statements
This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. They are based on management’s reasonable expectations and assumptions as of the date the statements are made but involve risks and uncertainties. These risks and uncertainties include, without limitation: the performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances, including trade conflicts and tariffs; changes in foreign currencies and in interest rates; the cost and availability of electric power, natural gas and other raw materials; the ability to achieve price increases to offset cost increases; catastrophic events including natural disasters, epidemics, and acts of war and terrorism; the ability to attract, hire, and retain qualified personnel; the impact of changes in financial accounting standards; the impact of changes in pension plan liabilities; the impact of tax, environmental, healthcare and other legislation and government regulation in jurisdictions in which the company operates; the cost and outcomes of investigations, litigation and regulatory proceedings; the impact of potential unusual or non-recurring items; continued timely development and market acceptance of new products and applications; the impact of competitive products and pricing; future financial and operating performance of major customers and industries served; the impact of information technology system failures, network disruptions and cybersecurity breaches; and the effectiveness and speed of integrating new acquisitions into the business. These risks and uncertainties may cause future results or circumstances to differ materially from adjusted projections, estimates or other forward-looking statements.
Linde plc assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances. The above listed risks and uncertainties are further described in Item 1A. Risk Factors in Linde plc’s Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on February 25, 2026 which should be reviewed carefully. Please consider Linde plc’s forward-looking statements in light of those risks.
Linde (LIN) came out with quarterly earnings of $4.33 per share, beating the Zacks Consensus Estimate of $4.27 per share. This compares to earnings of $3.95 per share a year ago.
Linde (LIN - Free Report) reported $8.78 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 8.3%. EPS of $4.33 for the same period compares to $3.95 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $8.51 billion, representing a surprise of +3.15%. The company delivered an EPS surprise of +1.41%, with the consensus EPS estimate being $4.27.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Linde performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Sales- Americas: $4.03 billion versus the four-analyst average estimate of $3.78 billion. The reported number represents a year-over-year change of +9.8%.Sales- EMEA: $2.17 billion versus $2.19 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change.Sales- Other: $367 million versus the four-analyst average estimate of $329.33 million. The reported number represents a year-over-year change of +18%.Sales- Engineering: $517 million compared to the $563.51 million average estimate based on four analysts. The reported number represents a change of -8.5% year over year.Sales- APAC: $1.7 billion compared to the $1.64 billion average estimate based on four analysts. The reported number represents a change of +10.5% year over year.View all Key Company Metrics for Linde here>>>
Shares of Linde have returned -0.3% over the past month versus the Zacks S&P 500 composite's +10.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
On May 1, 2026, Linde PLC LIN released its 8-K filing detailing first-quarter 2026 results. The company reported sales of $8.78 billion, operating profit of $2.44 billion, adjusted operating profit of $2.63 billion, GAAP diluted EPS of $3.98, and adjusted EPS of $4.33. Linde is the largest industrial gas supplier in the world, operating in over 100 countries. Its core offerings include atmospheric gases (oxygen, nitrogen, argon), process gases (hydrogen, carbon dioxide, helium), and related equipment, serving end markets such as chemicals, manufacturing, healthcare, and steelmaking. Linde generated approximately $34 billion in revenue in 2025.
Quarterly recap and estimates check Adjusted EPS was $4.33, which is higher than the estimated EPS of $4.23. GAAP diluted EPS was $3.98, which is below the estimated EPS of $4.23.
Sales were $8,781 million, which is below the estimated revenue of $8,893.50 million.
Year over year, sales increased 8% with a 5% favorable currency impact. Underlying sales rose 3% from 2% price attainment and 1% volume, primarily from project start-ups. Acquisitions added 1% to sales. Adjusted operating margin was 30.0%, down 10 basis points year over year, reflecting resilient pricing and productivity gains offset by mix and regional margin pressure.
Management commentaryLinde employees delivered another solid quarter with 10% EPS growth, 30% operating margin and 24% return on capital under increasingly challenging global conditions. These results underscore the resiliency of our operating model, discipline of capital allocation and perseverance of management actions.What drove the quarter: performance and emerging challenges Price discipline and productivity initiatives supported profit growth, with adjusted operating profit up 8% year over year. Currency provided a notable tailwind to reported sales growth. However, volume growth was modest at 1%, indicating uneven demand across end markets.
Regional dynamics were mixed. The Americas benefited from pricing and higher volumes in electronics, manufacturing, and metals and mining. Asia Pacific delivered strong volume growth tied to electronics and chemicals and energy plus project start-ups, but segment margin contracted. EMEA faced lower volumes in chemicals and energy and manufacturing, pointing to softer industrial activity. Linde Engineering experienced an 8% sales decline, though margin remained healthy.
Segment performance Segment Sales ($M) YoY Change Underlying Sales Operating Profit Margin Notes Americas 4,025 Up 10% Up 6% (4% price, 2% volume) 31.6% Strength in electronics, manufacturing, metals and mining APAC 1,701 Up 11% Up 6% (6% volume) 28.0% Electronics and chemicals and energy; project start-ups; margin down 130 bps YoY EMEA 2,171 Up 7% Down 2% (1% price, 3% lower volume) 36.1% Volume softness in chemicals and energy and manufacturing Linde Engineering 517 Down 8% N/A 19.5% Order intake $640M; third-party sale of equipment backlog $2.8BCash generation and capital allocation Operating cash flow was $2,240 million, up 4% year over year. Capital expenditures were $1,342 million, reflecting ongoing growth and maintenance investments. Free cash flow was $898 million, calculated as operating cash flow less capital expenditures.
Linde returned $1,545 million to shareholders through dividends and stock repurchases, net of issuances. Shareholder returns exceeded free cash flow in the quarter, indicating additional funding beyond period FCF. The company noted a $7.1 billion contractual sale of gas project backlog, highlighting sustained project activity that supports long-duration cash flows typical in the industrial gases model.
Key financial statement highlights and industry context Income statement: Operating profit was $2,439 million, with adjusted operating profit of $2,630 million driven by price realization and productivity. Adjusted EPS grew 10% year over year to $4.33, indicating operating leverage despite modest volumes and slight margin compression.
Balance sheet and liquidity: While detailed balance sheet figures were not disclosed in the press release, the company’s non-GAAP framework and 24% return on capital, referenced by management, point to efficient asset utilization consistent with capital-intensive gases businesses that emphasize on-site contracts and long-term returns.
Cash flow statement: The 4% increase in operating cash flow and nearly $0.9 billion in free cash flow underscore strong cash conversion. This is critical in chemicals and industrial gases, where steady cash flow supports multi-year capex pipelines, engineering backlogs, and shareholder distributions.
Analysis Linde PLC LIN delivered an adjusted EPS beat against consensus alongside an 8% revenue increase aided by currency. The underlying 3% sales growth, consisting of 2% price and 1% volume, suggests a healthy pricing environment but only modest demand growth. Mixed regional performance—APAC margin contraction and EMEA volume declines—highlights macro variability that could weigh on near-term mix and margins.
Even so, the 30.0% adjusted operating margin and 24% return on capital (per management commentary) indicate durable competitive positioning. Cash generation remained solid, funding significant capex while still enabling sizable shareholder returns. The Engineering order intake and backlog, coupled with the broader sale-of-gas project backlog, reinforce visibility into future activity, a hallmark of the industrial gases model.
GuruFocus Valuation Check Based on GuruFocus’s GF Value, Linde PLC LIN appears overvalued at the current price. The GF Value is $473.92, while the current price is $514.20, implying the shares trade about 8.5% above estimated fair value.
The GF Score of 94/100 is strong, supported by a 9/10 Profitability Rank, 9/10 Growth Rank, and 4.5-star Predictability. For investors, this combination typically signals a high-quality compounder with consistent execution and favorable growth characteristics. A Moat Score of 8/10 aligns with the industry’s high switching costs and long-term contracts that can provide earnings durability. Financial Strength at 6/10 is solid but suggests balance-sheet prudence remains important given the sector’s capital intensity.
Insider Activity shows $10.3 million in insider sales over the last three months and no insider buying, which can be a note of caution when shares screen as overvalued. For a deeper dive, visit the Linde PLC stock page on GuruFocus.
Explore the complete 8-K earnings release (here) from Linde PLC for further details.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways Linde reported Q1 EPS of $4.33, up 10% YoY, beating estimates on strong pricing.Linde's revenue rose 8% to $8.78B, supported by project start-ups and volumes.LIN holds a $10.1B backlog and raised its dividend by 7%, marking 33 straight years of growth. Linde plc (LIN - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $4.33, up 10% from $3.95 a year ago. The figure topped the Zacks Consensus Estimate of $4.27 by 1.41%.
Total quarterly revenues of $8.78 billion rose 8% from $8.11 billion recorded in the year-ago period. The top line beat the Zacks Consensus Estimate of $8.51 billion by 3.17%.
The strong quarterly results can be attributed to higher pricing and incremental project start-ups, which supported underlying growth.
LIN Leans on Price Attainment and Project Start-UpsThe top-line beat was driven by a mix of operational factors. Compared with the prior-year quarter, underlying sales increased 3%, supported by 2% price attainment and 1% volume growth, driven by project start-ups. Acquisitions added another 1% to sales growth.
LIN Protects Operating Leverage Despite Macro FrictionLinde reported operating profit of $2.44 billion and adjusted operating profit of $2.63 billion, up from $2.18 billion and $2.44 billion, respectively, recorded in the prior-year quarter.
Net income attributable to Linde increased from the year-ago figure of $1.67 billion to $1.86 billion. The company’s adjusted net income was $2.02 billion, up 7% year over year from $1.88 billion, reflecting stronger operating profit and ongoing productivity initiatives across segments.
LIN’s Segmental HighlightsGeographically, the Americas remained the key growth contributor, with segment sales of $4.03 billion, up 10% year over year from $3.67 billion. The increase was supported by stronger pricing and higher volumes, with electronics and manufacturing highlighted as key end markets. Segment operating profit reached $1.27 billion, up from $1.14 billion recorded in the year-ago quarter.
APAC sales rose to $1.70 billion, reflecting an 11% increase from $1.54 billion a year ago. Volumes were the main driver, aided by project start-ups and demand in electronics, as well as chemicals and energy. Segment operating profit increased from $451 million to $477 million for the quarter.
EMEA sales amounted to $2.17 billion, up 7% from the year-ago quarter’s figure of $2.03 billion. Underlying performance was less favorable, with volume pressure in chemicals, energy and manufacturing offsetting pricing gains. Segment operating profit improved to $784 million from $722 million recorded in the prior-year quarter.
Engineering sales decreased from $565 million in the prior-year quarter to $517 million. Operating profit in the Engineering segment declined to $101 million from $114 million in the prior-year quarter.
LIN’s BacklogsAt the end of the first quarter, the company’s high-quality project backlog amounted to $10.1 billion, comprising a sale-of-gas backlog of $7.1 billion.
Linde’s Cash Generation Supports Shareholder ReturnsCash flow remained supportive of capital returns and investment priorities. First-quarter operating cash flow was $2.24 billion, up 4% from $2.16 billion in the prior-year quarter. Capital expenditures totaled $1.34 billion, resulting in free cash flow of $898 million.
Capital deployment was directed toward returning cash to shareholders alongside continued growth investment. During the quarter, Linde returned $1.55 billion through dividends and stock repurchases, net of issuances. The company has raised its dividend by 7% in 2026, marking 33 consecutive years of dividend increases.
LIN’s 2026 GuidanceManagement’s near-term and full-year guidance remained centered on steady execution rather than a sharp demand rebound. For the second quarter of 2026, Linde expects EPS to be in the range of $4.40-$4.50, implying 8% to 10% growth versus the prior-year quarter, or 7% to 9% excluding an estimated 1% currency benefit.
For full-year 2026, EPS is expected to be in the range of $17.60-$17.90, suggesting 7-9% growth and assuming a 1% favorable currency impact.
Capital expenditures are expected to be between $5.0 billion and $5.5 billion, reflecting both maintenance needs and growth spending tied to the company’s contractual project pipeline.
LIN’s Zacks Rank & Key PicksLIN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials sector are Dow Inc. (DOW - Free Report) , CF Industries Holdings, Inc. (CF - Free Report) and Nutrien Ltd. (NTR - Free Report) . Both DOW and CF sport a Zacks Rank #1 (Strong Buy) at present, while NTR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow reported a first-quarter 2026 loss of 14 cents per share, narrower than the Zacks Consensus Estimate of a loss of 39 cents.
As of March 31, 2026, DOW reported $4.1 billion in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $17.3 billion.
CF Industries is the largest producer of ammonia globally. The company is scheduled to release first-quarter 2026 earnings on May 7. The Zacks Consensus Estimate for CF’s earnings is pegged at $2.35 per share, which implies an increase of 27% from the prior-year reported figure.
Nutrien, based in Canada, is a leading integrated provider of crop inputs and services. NTR is scheduled to release first-quarter 2026 earnings on May 6. The Zacks Consensus Estimate for NTR’s earnings is pegged at 48 cents per share, which implies an increase of 336.4% from the prior-year reported figure.
Linde PLC (LIN) Q1 2026 Earnings Call Highlights: Strong EPS Growth and Strategic Acquisitions Propel Performance Linde PLC (LIN) reports a robust 10% EPS increase, strategic acquisitions, and continued dividend growth amidst global challenges. Summary
EPS: $4.33, a 10% increase year-over-year.Operating Margin: 30%.Return on Capital: 23.8%.Revenue: $8.8 billion, up 8% year-over-year.Operating Profit: $2.6 billion, an 8% increase year-over-year.Operating Cash Flow: $2.2 billion, 4% higher than prior year.Capital Expenditures: $1.3 billion.Free Cash Flow: $900 million.Dividend Growth: 7% increase, marking 33 consecutive years of growth.Stock Repurchase: $800 million during the quarter.Healthcare Sales Growth: 1% year-over-year.Food and Beverage Sales Growth: 5% year-over-year.Electronics Sales Growth: 10% year-over-year.Chemicals and Energy Sales Growth: 3% year-over-year.Metals and Mining Sales Growth: 3% year-over-year.Manufacturing Sales Growth: 5% year-over-year.Guidance for Q2 2026 EPS: $4.40 to $4.50, 8% to 10% growth.Full Year 2026 EPS Guidance: $17.60 to $17.90, 7% to 9% growth.
Release Date: May 01, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Linde PLC LIN reported a strong EPS growth of 10% to $4.33, showcasing resilience against a challenging economic backdrop.Operating margins reached an impressive 30%, with a return on capital at a healthy 24%, indicating efficient management and profitability.The electronics sector saw a significant 10% growth, driven by investments in advanced chips for AI, positioning Linde PLC (LIN) well in the market.The company signed 9 bolt-on acquisitions in the Americas, contributing to future EPS growth and expanding its market presence.Linde PLC (LIN) raised its annual dividend by 7%, marking 33 consecutive years of dividend growth, reflecting strong shareholder returns. Negative Points The US home care business within the healthcare segment remained flat due to a new policy affecting service levels, impacting overall growth.EMEA experienced negative volumes, primarily due to on-site customers shifting production to more competitive regions outside Continental Europe.The helium market faced acute global shortages, although Linde PLC (LIN) is well-positioned, the situation adds uncertainty to supply dynamics.APAC saw lower volumes driven by seasonal factors and weaker trends in industrial end markets, affecting overall sales growth.The construction and subcontractor environment in the US Gulf Coast remains challenging, causing delays in project timelines. Q & A Highlights Q: Can you explain the margin performance across different regions, particularly the strong improvement in the Americas and the flat performance in Europe and Asia?
A: Matthew White, Chief Financial Officer, explained that on a full-year basis, Linde expects to raise margins for 2026, likely at the upper end of their traditional range. In Europe, weaker industrial and chemical environments, along with impacts from the Middle East conflict, have affected volumes. In Asia, seasonal factors and a one-off sale of equipment related to electronics contracts impacted margins. However, the company expects improvements in both regions as the year progresses.
Q: How is Linde positioned to support the commercial space sector, and what are the growth expectations for this market?
A: Matthew White stated that Linde is well-positioned to support the growing space economy, particularly in the U.S. and internationally. The company is working with major and emerging launch providers to ensure capacity and contractual relationships are in place. Growth will depend on launch frequency, size, and propellant type, with hydrogen-based rockets potentially accelerating growth. Linde expects to reach significant sales in this sector, driven by increased satellite launches and replacements.
Q: What are the longer-term implications of the current geopolitical crisis on energy security and potential projects in conventional and renewable energy?
A: Matthew White noted that energy independence and security are likely to be accelerated due to the crisis. While renewable energy remains a focus, it requires government support and subsidies to be viable. Conventional energy sources, such as LNG and oil sands, may see renewed interest due to their lower exploration risks. Linde expects continued interest in both conventional and renewable energy projects, depending on economic viability and government policies.
Q: How is Linde managing the impact of European energy price fluctuations on merchant and packaged gas pricing?
A: Matthew White explained that Linde uses surcharges to manage short-term energy price volatility. If energy prices remain elevated for a sustained period, they may be incorporated into overall pricing. Currently, the company is using surcharges to address the volatility, but sustained increases could lead to structural price adjustments.
Q: What is the outlook for Linde's helium business given the current supply constraints?
A: Matthew White stated that Linde's helium business is largely contracted, with 85% to 90% of sales under long-term agreements. The company has seen pricing rise due to recent supply constraints and expects this trend to continue. Linde is prioritizing securing long-term agreements with high-quality customers and anticipates incremental volumes and pricing as opportunities arise.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
WOKING, England--(BUSINESS WIRE)--Linde (Nasdaq: LIN) today announced it has been included in the Dow Jones Best-in-Class Indices (previously known as Dow Jones Sustainability Indices) for the 23rd consecutive year.
The Dow Jones Best-in-Class World Index comprises global sustainability leaders as identified by S&P Global through the Corporate Sustainability Assessment (CSA). It represents the top 10% of the largest 2,500 companies in the S&P Global BMI based on long-term economic, environmental and social criteria. Linde scored in the 98th percentile in its CSA and was recognized by S&P Global for 25 years of active engagement.
Linde was also included in the S&P 2026 Sustainability Yearbook, following a rigorous assessment of sustainability performance and reporting. Of more than 9,200 companies eligible for inclusion, only 848 qualified for Yearbook membership.
“These distinctions validate Linde's pragmatic approach to sustainability built over more than two decades. They also confirm our strong track record in transparent reporting in alignment with global disclosure standards,” said Erin Catapano, Linde Vice President Sustainability. “Linde’s focus on creating long-term value extends from helping customers to decarbonize and managing Linde’s own environmental footprint to investing in the communities where we live and work.”
“Reaching 25 years of participation in the S&P Global CSA is a testament to Linde’s long-standing commitment to meaningful sustainability action,” said Robert Dornau, S&P Global Senior Director, Head of Corporate Solutions & Engagement.
With its products, technologies and services, Linde helped its customers avoid more than 90 million metric tons of carbon dioxide equivalents in 2025. Linde’s climate goals include its 2035 science-based absolute greenhouse gas emissions reduction target and its 2050 climate neutrality ambition.
About Linde
Linde is a leading global industrial gases and engineering company with 2025 sales of $34 billion. We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain, decarbonize and protect our planet.
Linde serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde’s industrial gases and technologies are used in countless applications, enabling space exploration and launch technologies, delivering ultra-high-purity and specialty gases for semiconductor manufacturing, providing life-saving medical oxygen and enabling clean hydrogen production and carbon capture to reduce greenhouse gas emissions. Linde also delivers state-of-the-art gas processing solutions to support customer growth, efficiency improvements and emissions reductions.
For more information about the company and its products and services, please visit www.linde.com
Linde (LIN) remains a best-in-class industrial with robust margins, 33 years of dividend growth, and disciplined capital allocation. Q1'26 results reinforced business resilience: 10% EPS growth, 30% margins, and $1.5B returned to shareholders, despite only 1% underlying volume growth. Secular tailwinds in electronics, aerospace, and helium offer long-term upside, but near-term volume recovery is not yet visible, especially in EMEA.
SpaceX could raise $75 billion in capital with its IPO, giving it more cash to spend on various projects. The IPO gives an opportunity for this early investor to sell stock and redeploy cash in high-return opportunities.
As the global financial community eagerly awaits SpaceX's historic initial public offering (IPO) – rumoured to command some $1.7 trillion valuation on June 12 – a wave of capital is flooding into public space stocks. This unprecedented offering promises to shine a “blinding spotlight” on the entire commercial space ecosystem, resetting industry benchmarks and driving institutional demand to a fever pitch.
WOKING, England--(BUSINESS WIRE)--Linde (Nasdaq: LIN) has published its 2025 Sustainable Development Report, highlighting measurable progress against its sustainability commitments and the growing impact of its technologies in supporting customers' decarbonization efforts. In 2025, Linde reduced absolute greenhouse gas emissions by 10% versus its 2021 baseline and increased the share of electricity from low-carbon and renewable sources to 50%, advancing toward its 2035 emissions reduction targe.
On June 01, 2026, we delve into the DCF analysis for Linde PLC LIN , a company currently trading at $497.69. The stock has experienced a price performance of -3.8% over the past week, -1.4% over the past month, +17.1% year-to-date, and +8.7% over the past year. Here are some key insights:
DCF Earnings-based intrinsic value of $326.62 per share vs current price of $497.69 (margin of safety: -52.4%) DCF FCF-based intrinsic value of $199.62 per share vs current price (second opinion indicates significant overvaluation) GF Score™ of 94/100 suggests high reliability of the DCF inputs What Is LIN Worth? DCF Earnings-Based Model The DCF earnings-based model evaluates Linde PLC's intrinsic value by projecting its future earnings growth over a 10-year period, followed by a terminal growth phase. The model assumes a starting EPS of $16.38 and applies a growth rate of 13.3% for the first decade. The discount rate is set at 11%, which is derived from the risk-free rate and equity risk premium. After the growth phase, the terminal growth rate is assumed to be 4% for the subsequent ten years.
Parameter Value Current EPS (TTM, excl. non-recurring) $16.38 10-Year Growth Rate 13.3% 10-Year Treasury Rate 4.47% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The two-stage model breaks down the valuation into a growth stage and a terminal stage. The growth stage reflects the expected earnings growth over the first ten years, while the terminal stage accounts for the company's value beyond that period.
Stage Description Value Growth Stage (Years 1-10) EPS growing at 13.3%, discounted at 11% $183.64 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $142.98 Intrinsic Value Growth + Terminal $326.62 With the current price at $497.69, the intrinsic value of $326.62 indicates that Linde PLC is modestly overvalued, with a margin of safety of -52.4%. It is important to note that GuruFocus uses EPS without non-recurring items because research shows stock prices correlate more closely with earnings than free cash flow. For further calculations, visit the LIN DCF Calculator.
What Does the Free Cash Flow DCF Say? The Free Cash Flow (FCF) based intrinsic value for Linde PLC is calculated at $199.62 per share. When comparing this to the earnings-based intrinsic value of $326.62, there is a significant disparity. The FCF model indicates that Linde PLC is significantly overvalued, with a margin of safety of -149.3%. This divergence suggests that the two models do not agree on the valuation of the company.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Linde PLC stands at $490.46, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure calculated from historical trading multiples, past business growth, and future performance estimates. When considering the DCF earnings-based, FCF-based, and GF Value™, all three models indicate that Linde PLC is overvalued. For more details, visit the GF Value™ page.
What Does LIN's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtested data from 2006 to 2021. Linde PLC has a GF Score™ of 94/100, indicating strong potential. The financial strength is rated 6/10, profitability 9/10, growth 9/10, valuation 9/10, and momentum 10/10. The predictability rank is 2/5 stars, suggesting that the DCF model may be less reliable for this stock. For further insights, visit the LIN stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as Linde PLC with a rank of 2/5 stars, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future market conditions accurately.
What This Means for Investors In summary, the DCF earnings-based model indicates that Linde PLC is modestly overvalued, while the FCF-based model suggests a significant overvaluation. The GF Value™ also supports the conclusion of overvaluation. Therefore, the clear verdict is that Linde PLC is overvalued at its current price.
For the full DCF analysis, visit the LIN DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is LIN's intrinsic value based on DCF?
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Genuine Parts (GPC - Free Report) came out with quarterly earnings of $1.77 per share, missing the Zacks Consensus Estimate of $1.81 per share. This compares to earnings of $1.75 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -1.94%. A quarter ago, it was expected that this auto and industrial parts distributor would post earnings of $1.79 per share when it actually produced earnings of $1.55, delivering a surprise of -13.41%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Genuine Parts, which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry, posted revenues of $6.26 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.55%. This compares to year-ago revenues of $5.87 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.
Genuine Parts shares have lost about 8.4% since the beginning of the year versus the S&P 500's gain of 3.9%.
What's Next for Genuine Parts?While Genuine Parts has underperformed 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 Genuine Parts was unfavorable. 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 #4 (Sell) for the stock. So, the shares are expected to underperform 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 $2.21 on $6.38 billion in revenues for the coming quarter and $7.76 on $25.28 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, Automotive - Retail and Wholesale - Parts is currently in the bottom 18% 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.
O'Reilly Automotive (ORLY - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 29.
This auto parts retailer is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of +11.3%. The consensus EPS estimate for the quarter has been revised 1.7% lower over the last 30 days to the current level.
O'Reilly Automotive's revenues are expected to be $4.47 billion, up 8% from the year-ago quarter.
For the quarter ended March 2026, Genuine Parts (GPC - Free Report) reported revenue of $6.26 billion, up 6.8% over the same period last year. EPS came in at $1.77, compared to $1.75 in the year-ago quarter.
The reported revenue represents a surprise of +1.55% over the Zacks Consensus Estimate of $6.17 billion. With the consensus EPS estimate being $1.81, the EPS surprise was -1.94%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Genuine Parts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Automotive- North America: $2.36 billion versus the two-analyst average estimate of $2.36 billion. The reported number represents a year-over-year change of +4.3%.Net Sales- Automotive: $3.95 billion versus $3.81 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +7.7% change.Net Sales- Industrial: $2.32 billion versus $2.34 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.Segment EBITDA- Automotive: $301.05 million compared to the $298.53 million average estimate based on two analysts.Corporate EBITDA: $-119.53 million versus the two-analyst average estimate of $-100.6 million.Segment EBITDA- Industrial: $314.12 million versus $303.46 million estimated by two analysts on average.View all Key Company Metrics for Genuine Parts here>>>
Shares of Genuine Parts have returned +11.4% over the past month versus the Zacks S&P 500 composite's +9.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Genuine Parts Company (GPC) reported fairly good Q1 results in a volatile environment. The Industrial and N.A. Automotive segments showed confident earnings, while International Automotive expectedly struggled more in a shaky market environment. GPC reaffirmed its 2026 financial guidance, which is clearly positive. The conflict in Iran could cause volatility in forward earnings.
Genuine Parts' Q1 results showed North America Automotive margin improvement and strong Industrial segment performance, but International Automotive lagged on underlying sales and margin. First tangible separation costs have emerged, with ongoing uncertainty around dis-synergies, capital structure, and future dividend policy weighing on investor confidence. GPC's valuation is not enough to turn positive.
Examine Genuine Parts' (GPC) international revenue patterns and their implications on Wall Street's forecasts and the prospective trajectory of the stock.
ATLANTA, April 28, 2026 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC), a leading global service provider of automotive and industrial replacement parts and value-added solutions, announced today its Board of Directors declared a regular quarterly cash dividend of one dollar and six and one quarter cents ($1.0625) per share on the company's common stock. The dividend is payable on July 2, 2026 to shareholders of record on June 5, 2026.
Altria Group (NYSE:MO | MO Price Prediction), Coca-Cola (NYSE:KO), and Genuine Parts Company (NYSE:GPC) are three of the most reliable dividend payers in the market.
On May 12, 2026, Genuine Parts Co (GPC) shares fell 3.8%, closing at $100.74. The stock has experienced a downward trend, trading between a 52-week high of $151
Strategic acquisition expands GPC's fiber network and strengthens its long-standing commitment to Nebraska communities Strategic acquisition expands GPC's fiber network and strengthens its long-standing commitment to Nebraska communities
Emerson Electric (EMR) came out with quarterly earnings of $1.54 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.48 per share a year ago.
The headline numbers for Emerson Electric (EMR) give insight into how the company performed in the quarter ended March 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Emerson Electric Co. is a mature industrial company with slow growth, limited exposure to AI-driven data center capex, and a premium valuation. EMR's recent quarter showed 3% revenue and 4% earnings growth, reflecting dependence on broad macro drivers rather than high-growth sectors. Despite solid margins and over $3bn FCF, EMR's serial M&A and portfolio strategy have not enhanced growth or returns.
EMR posts modest Q2 growth as pricing and demand offset geopolitical headwinds, while backlog strength and orders signal momentum into a stronger second half.
Emerson Electric Co. is rated Buy with a $197/share target, leveraging U.S. reindustrialization and global data center expansion. EMR can benefit from $1.4T utility investments in power infrastructure and potential LNG market shifts due to Middle East disruptions. Software and systems, especially grid management and AI-embedded solutions, are driving robust order growth and future margin expansion.
AspenTech AVA enables customers to act faster, develop more informed strategies, improve operational reliability HOUSTON, May 11, 2026 /PRNewswire/ -- Global automation leader Emerson (NYSE: EMR) today introduced the AspenTech AVA™ AI platform, specifically designed for industrial companies to accelerate AI adoption across the enterprise for measurable business impact. Offering agentic, domain-aware AI capabilities, AVA delivers the agility, efficiency and autonomy companies need to respond faster to operating conditions, continuously improve performance using trusted domain context and act with greater confidence through AI-assisted recommendations embedded directly in operations.
Enhanced AspenTech Inmation OT Data Fabric to accelerate enterprise-scale intelligence HOUSTON, May 13, 2026 /PRNewswire/ -- Global automation leader Emerson (NYSE: EMR) today announced major advancements to the AspenTech Inmation™ OT Data Fabric, establishing it as the foundational enterprise-scale intelligence layer for the AspenTech Inmation Data Platform. The enhanced Inmation OT Data Fabric creates a modern industrial data backbone designed to scale with customers as their digital needs evolve, supporting advanced analytics, AI capabilities and the development of an enterprise operations platform that connects data, context and decision-making across the organization.
NI Nigel™ AI to expand into code generation and cross-platform intelligence, embedding AI automation across the test lifecycle FORT WORTH, Texas, May 13, 2026 /PRNewswire/ -- Global automation leader Emerson (NYSE: EMR) today announced the expansion of NI Nigel™ AI across its test software portfolio, introducing new prompt-based code generation in the NI LabVIEW+ Suite and further evolving the NI platform into an integrated, AI-ready test automation platform. These enhancements will allow aerospace, semiconductor, transportation and other mission-critical customers to develop, test and deliver products to market faster while meeting strict reliability and safety requirements.
In a software-led global industrial complex that's going strong on digitalization, the mention of ‘big data' has become routine. But process industries say it is ‘quality data' and not randomly gathered digital data mountains that make the difference.
Report highlights continued investments in employees, customers, suppliers and communities, progress toward sustainability targets ST. LOUIS, May 19, 2026 /PRNewswire/ -- Global automation leader Emerson (NYSE: EMR) today released its 2025 Sustainability Report, highlighting the Company's progress in advancing innovation and improving operational efficiency while driving meaningful environmental impact internally and for customers.
Advanced sensing to digitalize industrial corrosion monitoring for improved decision making Emerson and Aramco sign an agreement to co-develop next-generation corrosion management solutions for the Saudi Arabian Oil Company (Aramco), one of the world's leading integrated energy and chemicals companies. Emerson's advanced corrosion monitoring platform delivers real-time insights that enable the energy industry to prevent unplanned downtime and boost production efficiency.
Zacks.com users have recently been watching Emerson Electric (EMR) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Dover Corporation (DOV) came out with quarterly earnings of $2.28 per share, beating the Zacks Consensus Estimate of $2.27 per share. This compares to earnings of $2.05 per share a year ago.
The headline numbers for Dover (DOV) give insight into how the company performed in the quarter ended March 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
