Ingersoll Rand Inc. (IR) AI Stock Analysis
IR AI stock analysis summary
AI ResearchIngersoll Rand Inc. (IR) is an industrial manufacturer specializing in air compression systems, fluid transfer equipment, and precision fluid management technologies. Over the trailing twelve months, the company generated $7.94B in revenue with an operating margin of 16.9%. While IR carries $3.66B in net debt, it generated $1.22B in free cash flow in FY2025 and trades at a forward P/E of 19.3x.
- Market cap
- $30.18B
- Revenue (TTM)
- $7.94B
- P/E
- 32.0x fwd 19.3x
- 1Y return
- 2.7% S&P 500 16.8%
- Avg. target
- $94.71 21.8% vs last close
Bull case
- Ingersoll Rand generated $1.22B in free cash flow in FY2025, supporting $1.02B in share repurchases that year.
- The stock trades at a forward P/E of 19.3x, representing a discount to the median of its S&P 500 Industrials peers at 20.7x.
- Analyst consensus targets an average price of $94.71, representing 21.8% potential upside from the October 16, 2026 closing price of $77.78.
Bear case
- Net income fell from $838.6M in FY2024 to $581.4M in FY2025, with net margin narrowing from 11.6% to 7.6%.
- Ingersoll Rand has underperformed the broader market, returning 2.7% over the past year compared to 16.8% for the S&P 500.
- The company's quarterly revenue growth of 8.5% for the period ended June 30, 2026, trailed the peer group median growth rate of 10.3%.
What Ingersoll Rand does
Ingersoll Rand Inc. provides essential air, fluid, energy, specialty vehicle, and medical technologies globally. It operates through two segments: Industrial Technologies and Services, and Precision and Science Technologies. Industrial Technologies and Services designs, manufactures, and services air and gas compression systems, vacuum and blower products, fluid transfer equipment, power tools, lifting equipment, and related aftermarket parts for industrial manufacturing, energy, agriculture, and food and beverage sectors. Precision and Science Technologies develops specialized positive displacement pumps and fluid management systems used for liquid and gas dosing, transfer, and dispensing in medical, laboratory, chemical processing, water treatment, and precision irrigation markets.
Growth and profitability
Ingersoll Rand increased its annual revenue from $5.15B in FY2021 to $7.65B in FY2025, delivering a 5-year revenue CAGR of 14.0% through FY2025. Annual net income peaked at $838.6M in FY2024 before decreasing to $581.4M in FY2025, with net margin declining from 11.6% to 7.6%. However, operating margin expanded steadily from 11.0% in FY2021 to 18.5% in FY2025, while EPS rose from $2.16 to $3.34 over the same period. For the trailing twelve months ended June 30, 2026, revenue stood at $7.94B with EPS of $2.43. In the quarter ended June 30, 2026, quarterly revenue grew 8.5% year-over-year, and quarterly earnings grew 6.5%.
Balance sheet and cash flow
As of June 30, 2026, Ingersoll Rand held $1.17B in cash and short-term investments against $4.83B in total debt, resulting in net debt of $3.66B. The company maintains a current ratio of 1.62 and a debt-to-equity ratio of 0.47 on shareholders' equity of $10.18B. In FY2025, operating cash flow reached $1.36B, supporting capital expenditures of $135.6M and yielding $1.22B in free cash flow. Capital allocation in FY2025 heavily prioritized share repurchases of $1.02B, alongside dividends paid of $31.8M, contributing to a 5-year share count reduction of 5.2%.
Valuation and performance
At $77.78 per share, Ingersoll Rand has a market capitalization of $30.18B and an enterprise value of $33.23B. The stock trades at a trailing P/E of 32.0x, which is above the median of its S&P 500 Industrials peers of 28.4x. However, its forward P/E of 19.3x sits below the peer group median of 20.7x, and its EV/EBITDA of 16.6x compares to the peer median of 17.7x. Over the past year, IR shares gained 2.7%, lagging the 16.8% return of the S&P 500. Over 5 years, IR returned 49.0% compared to 83.0% for the S&P 500.
IR dividend
Ingersoll Rand pays an annual forward dividend of $0.08 per share, translating to a dividend yield of 0.10%. The company has paid dividends for 10 consecutive years and maintains a payout ratio of 2.4%. Its annualized 5-year dividend growth rate is -40.4%, and its last ex-dividend date was August 13, 2026.
What analysts expect
Wall Street analysts hold 7 Strong Buy ratings and 7 Hold ratings on IR, with no Buy, Sell, or Strong Sell ratings. The mean price target is $94.71, implying 21.8% upside from the last close of $77.78. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $8.12B and EPS of $3.55, reflecting 6.3% EPS growth. Ingersoll Rand has beaten EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 29, 2026.
Key risks and what to watch
- Ingersoll Rand carries $4.83B in total debt and $3.66B in net debt as of June 30, 2026.
- Annual gross margin contracted from 43.8% in FY2024 to 38.5% in FY2025.
- The stock's trailing P/E of 32.0x sits above the S&P 500 Industrials peer median of 28.4x, exposing shares to multiple compression if growth slows.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this IR AI stock analysis
This page is an AI-written research summary of Ingersoll Rand Inc. (IR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: IR income statement, IR balance sheet, IR key metrics, IR analyst forecast, IR chart. See the IR stock overview for the latest quote and news.
IR AI stock analysis FAQ
What is Ingersoll Rand's dividend yield and payout schedule?
Ingersoll Rand pays a quarterly dividend with an annual forward payout of $0.08 per share, representing a dividend yield of 0.10%. The company has a payout ratio of 2.4% and has paid dividends for 10 consecutive years.
What are analysts forecasting for Ingersoll Rand's earnings and revenue?
For the fiscal year ending December 31, 2026, analysts estimate EPS of $3.55 on revenue of $8.12B. For the following fiscal year, 14 analysts project an average EPS of $3.91 on revenue of $8.52B, indicating 10.1% EPS growth.
How leveraged is Ingersoll Rand's balance sheet?
As of June 30, 2026, Ingersoll Rand had $1.17B in cash and short-term investments and $4.83B in total debt, resulting in net debt of $3.66B. Its current ratio is 1.62, and its debt-to-equity ratio is 0.47.
When does Ingersoll Rand report its next earnings?
Ingersoll Rand is scheduled to report its next earnings on October 29, 2026. Over the prior 4 quarters, the company topped EPS estimates 3 times.