| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 27 | 33.4x | 17.8x | Bottom tier | |
Growth | 62 | 7.0% | 7.1% | Around median | |
Quality | 82 | 25.5% | 4.5% | Top tier | |
Safety | 80 | 0.8x | 2.6x | Top tier | |
Capital Return | 47 | 0.92% | 2.12% | Around median | |
Momentum | 61 | 15.0% | 2.9% | Around median | |
Sentiment | 79 | 14 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Trane Technologies develops heating, ventilation, air conditioning, refrigeration, and thermal management solutions for buildings, data centers, and transportation, combining equipment, services, and integrated control systems. Its business drivers include commercial and residential HVAC systems, Thermo King transportation solutions, chillers and coolant distribution units, as well as smart systems and Agentic AI that help buildings reduce energy consumption and improve operational resilience. Services account for about one-third of the company’s revenue and have achieved a low-teens compound annual growth rate since 2020, giving the revenue model a recurring component alongside equipment sales.
In fiscal Q2 2026, revenue according to EDGAR was about $6.4 billion, gross profit was $2.3 billion, net income was $925.7 million, and earnings per share were $4.16. These figures equate to a gross margin of approximately 35.9% and a net income margin of approximately 14.5%, compared with revenue of $5.0 billion and net income of $584.4 million in fiscal Q1 2026. On an adjusted basis, earnings per share in fiscal Q2 2026 were about $4.31, up 11% year over year, while net revenue increased 11% to $6.35 billion and organic revenue grew 9%.
Commercial HVAC in the Americas led performance in fiscal Q2 2026, with bookings up 50% and organic revenue up in the low teens, while residential bookings increased in the high twenties and organic revenue rose in the low teens. Asia-Pacific bookings grew 31% and organic revenue grew 10%, while EMEA was affected by the Middle East conflict, although excluding this impact, commercial HVAC bookings grew in the mid-twenties and revenue grew in the mid-single digits. Commercial HVAC represents about 95% of the $12.1 billion backlog, making this business the most important source of future visibility and expected revenue.
The average analyst price target is $546.88, within a wide range of $475 to $585, while the 52-week range is $348.06 to $505.87; the average target is about 8.1% above the range high. Although record bookings and the raised fiscal 2026 outlook support a positive revaluation, the “Neutral” consensus and wide target range reflect concerns about backlog conversion, EMEA margins, and cost inflation, and the data do not provide a valid price-to-earnings ratio that can be relied upon.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
The clearest driver is 37% organic bookings growth in fiscal Q2 2026 and an increase in total bookings to $7.8 billion. This led to a record backlog of $12.1 billion, up 70% year over year, with about $6 billion allocated to fiscal 2027 and beyond. The company also raised its fiscal 2026 outlook to approximately 9% organic growth and adjusted earnings per share of between $15.20 and $15.30.
The data do not disclose a specific percentage of revenue derived from data centers, but they show that this market is a key driver of commercial HVAC and Applied growth. The company provides data centers with chillers, air handlers, coolant distribution units, and closed-loop systems, and said LiquidStack is exceeding its expectations and that Stellar is targeting revenue of $500 million in fiscal 2026. However, management emphasized that demand extends beyond data centers, with orders growing since the start of fiscal 2026 in 11 of 14 vertical markets.
The company expanded Applied capacity fourfold during the three years preceding fiscal Q2 2026 and continues to invest in Stellar and Grand Rapids. Management said it is not turning away orders and that about $6 billion of the backlog is allocated to fiscal 2027 and beyond, spreading deliveries over a longer period. However, suppliers face slightly higher-than-usual constraints, and data center site schedules can change, so the outlook includes a degree of execution disruption.
Automated analysis for informational purposes only — not investment advice.
Revenue according to EDGAR was about $6.4 billion, gross profit was $2.3 billion, and net income was $925.7 million. This equates to a gross margin of approximately 35.9% and a net income margin of approximately 14.5%, with reported earnings per share of $4.16. On an adjusted basis, earnings per share were $4.31 and grew 11% year over year, but cost inflation and additional investments pressured operating leverage during the quarter.
The Middle East represents less than 3% of group revenue but about 15% of the EMEA segment, so its impact on regional margins was greater than its impact on the company as a whole. The region’s revenue declined about 30% in fiscal Q2 2026, and the outlook assumes a similar decline in the second half of fiscal 2026. Excluding the Middle East, EMEA commercial HVAC bookings grew in the mid-twenties and revenue grew in the mid-single digits, and the raised full-year outlook incorporated the continuation of this pressure.
The company is targeting the deployment of $2.8 to $3.3 billion during fiscal 2026 through a mix of investment, dividends, share repurchases, and disciplined acquisitions. It increased its dividend 12% to an annual rate of $4.20 per share and has repurchased about $840 million of shares since the start of fiscal 2026. Another $3.8 billion remains under the repurchase authorization, while the company expects capital expenditure equal to 2% to 3% of revenue to support production capacity and growth.
