ITT Inc. (ITT) AI Stock Analysis
ITT AI stock analysis summary
AI ResearchITT Inc. (ITT) manufactures engineered components across transportation, industrial, and energy markets. Over the trailing twelve months, the company generated $4.74B in revenue with an operating margin of 12.4%. For the fiscal year ending December 31, 2026, analysts estimate revenue of $5.52B and EPS of $8.26.
- Market cap
- $17.83B
- Revenue (TTM)
- $4.74B
- P/E
- 38.8x fwd 21.6x
- 1Y return
- 17.0% S&P 500 16.8%
- Avg. target
- $258.46 30.3% vs last close
Bull case
- Revenue grew 51.5% year-over-year in the quarter ended June 30, 2026, supported by a 5-year revenue CAGR of 9.7%.
- Free cash flow reached $547.0M in FY2025, providing ample cash generation to cover $111.0M in annual dividends paid.
- Analysts maintain 12 Strong Buy ratings and an average price target of $258.46, representing 30.3% upside above the closing price.
Bear case
- Quarterly earnings fell 37.5% year-over-year in the latest quarter ended June 30, 2026.
- ITT trades at a forward P/E of 21.6x and EV/EBITDA of 23.6x, well above the US-listed Industrials peer medians of 17.2x and 13.9x.
- Net debt stood at $3.24B as of June 30, 2026, with total debt reaching $3.83B.
What ITT does
ITT Inc. specializes in manufacturing and distributing engineered critical components and tailored technology solutions across transportation, industrial, and energy markets worldwide. The company operates through three segments: Motion Technologies, Industrial Process, and Connect & Control Technologies. Motion Technologies manufactures brake pads, shims, shock absorbers, and sealing technologies for passenger, commercial, and military vehicles, as well as buses and trains. Industrial Process designs industrial pumps, valves, plant optimization systems, and aftermarket replacement parts for chemical, energy, and mining sectors. Connect & Control Technologies produces connectors, actuators, and specialized control components for aerospace, defense, industrial, transportation, medical, and energy applications.
Growth and profitability
Annual revenue expanded from $2.77B in FY2021 to $3.94B in FY2025, reflecting a 5-year revenue CAGR of 9.7%. Net income grew from $316.3M in FY2021 to $488.0M in FY2025, while diluted EPS increased from $4.05 to $6.72. Operating margins stood at 18.2% in FY2021 and 17.4% in FY2025, alongside gross margin expansion to 35.4%. Across the trailing twelve months ended June 30, 2026, ITT posted $4.74B in revenue and an operating margin of 12.4%. In the latest quarter ended June 30, 2026, quarterly revenue grew 51.5% year-over-year, while quarterly earnings declined 37.5%.
Balance sheet and cash flow
As of June 30, 2026, ITT held $590.8M in cash and short-term investments against $3.83B in total debt, resulting in net debt of $3.24B. Shareholders' equity was $4.80B, with a debt-to-equity ratio of 0.80 and a current ratio of 1.26. In FY2025, the company delivered $668.3M in operating cash flow and $547.0M in free cash flow. Capital allocation in FY2025 included $121.3M for capital expenditures, $521.0M for share buybacks, and $111.0M in dividends paid.
Valuation and performance
At $198.42 per share, ITT carries a market capitalization of $17.83B and an enterprise value of $21.90B. The stock trades at a trailing P/E of 38.8x and a forward P/E of 21.6x, compared to the median of its US-listed Industrials peers at 24.8x trailing and 17.2x forward. Its enterprise value-to-EBITDA stands at 23.6x, above the peer median of 13.9x. Over the past year, ITT shares returned 17.0%, compared to a 16.8% return for the S&P 500.
ITT dividend
ITT pays a quarterly dividend with an annualized forward payout of $1.54 per share, representing a dividend yield of 0.78%. The company has paid dividends for 31 consecutive years, with a 5-year annualized dividend growth rate of 15.7%. The dividend payout ratio stands at 19.6%, and the most recent ex-dividend date was September 8, 2026.
What analysts expect
Consensus ratings include 12 Strong Buy, 1 Hold, and 1 Sell. The mean price target of $258.46 implies 30.3% upside compared to the last close of $198.42. For the fiscal year ending December 31, 2026, analysts estimate EPS of $8.26 on revenue of $5.52B. For the subsequent fiscal year, 14 analysts project revenue of $6.02B and EPS of $9.61. ITT has beaten EPS estimates in 4 of the last 4 quarters, with next earnings scheduled for November 4, 2026.
Key risks and what to watch
- Net income dropped from $518.3M in FY2024 to $488.0M in FY2025, accompanied by a 37.5% drop in quarterly earnings in the latest quarter.
- Total debt of $3.83B against cash and short-term investments of $590.8M leaves a debt-to-equity ratio of 0.80.
- Short interest stands at 8.4% of float, indicating notable downside positioning by market participants.
- The stock has a beta of 1.25, indicating higher price volatility than the broader equity market.
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 ITT AI stock analysis
This page is an AI-written research summary of ITT Inc. (ITT). 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: ITT income statement, ITT balance sheet, ITT key metrics, ITT analyst forecast, ITT chart. See the ITT stock overview for the latest quote and news.
ITT AI stock analysis FAQ
What was ITT's revenue and earnings performance in FY2025?
In FY2025, ITT generated $3.94B in revenue, up 8.5% from the previous year, with net income of $488.0M and diluted EPS of $6.72.
Does ITT pay a dividend?
Yes, ITT pays a quarterly dividend with a forward annual payout of $1.54 per share, equating to a 0.78% yield. The company has paid dividends for 31 consecutive years.
How does ITT's valuation compare to its peers?
ITT trades at a forward P/E of 21.6x and an EV/EBITDA of 23.6x, compared to median multiples of 17.2x and 13.9x for the US-listed Industrials peer group.
What is the consensus analyst target for ITT stock?
The mean analyst price target is $258.46, representing 30.3% upside from the last closing price of $198.42. Ratings include 12 Strong Buy, 1 Hold, and 1 Sell.