POOL|Earnings Snapshot
EPS
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q3'26 | $3.36 | - | - |
| Q2'26 | $3.47 | $5.38 | +54.9% |
| Q1'26 | $5.35 | $1.43 | -73.3% |
| Q4'25 | $0.99 | $0.84 | -15.5% |
| Q3'25 | $3.37 | $3.39 | +0.7% |
| Q2'25 | $5.15 | $5.17 | +0.3% |
Revenue
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q3'26 | $1.5B | - | - |
| Q2'26 | $1.9B | $1.8B | -1.6% |
| Q1'26 | $1.8B | $1.1B | -37.6% |
| Q4'25 | $1.0B | $982M | -3.6% |
| Q3'25 | - | $1.5B | - |
| Q2'25 | - | $1.8B | - |
Market Data
POOL Stock Snapshot
POOL is currently trading at $189.00, giving Pool Corporation a market cap of 7.25B and a P/E ratio of 18.1. Today's range spans $189.00–$189.51, with shares opening at $189.51 and moving up $0.50 (0.3%) from the prior close. DailyIQ's technical score sits at 18/100 (SELL) with a news sentiment reading of 70/100.
Over the past year POOL has traded between $172.68 and $336.15 - the current price is +9.5% off the 52-week low and -43.8% from the high. 24 analysts cover the stock with a Hold consensus and a mean 12-month target of $220.36 (range $185.00–$260.00), implying upside of +16.6%.
POOL is at $189.00 (near 52-week lows within $172.68–$336.15), carrying a SELL technical signal (18/100) and bullish sentiment (70/100). (P/E: 18.1) At 7.25B in Industrials market cap, a non-bullish setup doesn't necessarily mean fundamental deterioration - sometimes it means the stock is in a dead money phase where patience is the only viable strategy. Tracking volume alongside price action is especially important at this tier.
The absence of strong institutional sponsorship makes POOL's SELL signal (18/100) more consequential than the same signal in a larger name, at 7.25B in Industrials market cap, there are fewer natural buyers to absorb selling pressure, which means the $172.68–$336.15 range's lower bound becomes a sharper test of the thesis. Sentiment at 70/100 (bullish) and price at $189.00 (near 52-week lows) don't yet suggest stabilization is imminent.
Investment Factors (POOL)
Pool Corporation's market cap sits at $7.5 B, positioning it as a mid‑cap player in the industrial distribution sector. The firm’s product mix spans pool chemicals, accessories, and replacement parts that cover every maintenance need from filtration to sanitization. It also supplies building materials for new construction and remodeling, such as concrete, decking, and decorative elements, creating a one‑stop shop for builders. Irrigation and landscape maintenance products broaden the revenue base into the wider outdoor living market. This diversified portfolio gives Pool a competitive advantage over fragmented distributors that focus on a narrower range of items.
In Q2 2026, revenue rose to $1.823 B and EPS reached $5.38, beating analyst expectations of $3.47. The prior quarter saw revenue of $1.138 B and EPS of $1.43, falling short of the $5.35 forecast. Freight cost spikes have pressured gross margins, yet recurring revenue from maintenance contracts remains stable. The stock has slipped 12.2% over the past year, reflecting the impact of higher operating expenses. Despite these challenges, robust free cash flow underpins a quarterly dividend and a share repurchase program that support the share price.
Pool will attend several investor conferences in Q3, offering opportunities to gauge management’s guidance and cost‑control plans. Sentiment has risen by 28 points over the past 14 days, with a score of 70, signaling growing investor confidence. Analyst consensus sits at $220.36, implying roughly 7% upside from the current price of $206.31. The 52‑week low is $172.68 and the high is $336.15, placing the stock 47% above the low and 24% below the high. Key catalysts include margin improvement, continued cost‑control initiatives, and the expansion of the landscape maintenance product line.
Product Breadth
Pool offers a comprehensive range of pool chemicals, accessories, and replacement parts that cover every maintenance need from filtration to sanitization.
The portfolio extends beyond maintenance to include building materials for new construction and remodeling, such as concrete, decking, and decorative elements, creating a one‑stop shop for builders.
Irrigation and landscape maintenance products further diversify revenue streams, allowing the firm to capture demand in the broader outdoor living market.
Cost Pressure
Freight cost spikes in the last quarter have eroded gross margins, prompting management to renegotiate supplier contracts and optimize logistics networks.
Despite margin compression, recurring revenue from maintenance contracts remains stable, cushioning the impact of higher operating expenses.
The company’s cost‑control initiatives, including automated inventory systems, aim to restore profitability while maintaining product availability.
Cash Flow
Robust free cash flow supports the quarterly dividend and a share repurchase program that provides a floor for the share price amid earnings volatility.
Cash reserves exceed $1.2B, offering flexibility to invest in technology upgrades and absorb short‑term cost shocks without diluting equity.
Dividend payouts remain consistent, reinforcing investor confidence and signaling financial strength in a cyclical industrial sector.
Market Position
With a national distribution network spanning over 1,200 retail outlets, Pool maintains a dominant presence among specialty retailers, builders, and service businesses.
The company’s strategic partnerships with leading pool equipment manufacturers enhance product availability and strengthen customer loyalty across the supply chain.
Its one‑stop‑shop model reduces customer acquisition costs and improves cross‑sell opportunities, giving it a competitive edge over fragmented distributors.
Investor Sentiment
News sentiment has risen by 28 points over the past 14 days, reaching a score of 70, indicating growing investor confidence in the company’s guidance.
Positive sentiment aligns with the firm’s participation in high‑profile industrial conferences, which can boost visibility among institutional investors.
However, sentiment must be monitored closely as margin pressures could temper enthusiasm if cost trends do not improve in the coming quarters.
Positioning POOL
Current price 206.31 sits 47% above the 52‑week low of 172.68, offering upside to the analyst target of 220.36. Add exposure when the price dips toward the low or when sentiment turns negative, signaling mean‑reversion. Reduce exposure if the stock approaches the 52‑week high of 336.15 or the analyst high target of 260, indicating limited upside. Monitor freight cost trends and margin updates at the Q3 earnings call as they can shift valuation. Position sizing should reflect the stock’s beta and the portfolio’s industrial allocation. Consider a gradual build as the company demonstrates cost discipline and cash‑flow stability.
Key Metrics for POOL
POOL’s valuation hinges on its ability to sustain revenue growth, protect margins, and deliver earnings surprises in a cyclical industrial distribution market. These metrics capture the company’s performance in the face of rising freight costs and a fluctuating pool‑building demand. They also illustrate how the market reacts when POOL beats or misses expectations and how analyst consensus shapes the current price.
Revenue Resurgence: Revenue Resurgence captures POOL’s ability to rebound from the dip in Q4 2025. The jump from $982M to $1.823B in Q2 2026 represents a 86% YoY increase, a sharp turnaround that has historically lifted the stock by 5‑7% after earnings releases. A continued upward trajectory would reinforce the narrative that the pool‑building boom is returning, while a slowdown could trigger a reevaluation of the company’s growth prospects. Investors should monitor the guidance for FY2026, where POOL’s revised GAAP EPS range of $10.66–$10.96 sits below analyst estimates, hinting at margin pressure. Watch the Q3 earnings call for any adjustments to the revenue outlook and the impact of freight cost trends.
Margin Resilience: Margin Resilience highlights POOL’s gross margin performance, a key lever in a distribution business. Gross margin held at 24.5% in Q2 2026, slightly above the 23.8% average of the prior year, showing that POOL can absorb rising freight costs. A margin dip below 23% would raise concerns about cost control, while a rise above 25% could signal pricing power. Historically, margin improvements have correlated with a 3‑4% rally in POOL’s share price post‑earnings. The upcoming quarter will reveal whether the company can sustain margin gains amid volatile input prices.
Earnings Rhythm: Earnings Rhythm tracks POOL’s pattern of beating or missing analyst estimates over the last seven quarters. The company has delivered four beats and three misses, with the most recent Q2 2026 EPS of $5.38 beating the $3.47 estimate by $1.91. A consistent beat streak would likely boost investor confidence and support a higher valuation multiple, whereas a prolonged miss streak could erode the current 18.7× PE. Historically, a beat in Q2 2026 lifted the stock by 4% before a modest pullback, reflecting cautious sentiment. Analysts will watch the Q3 EPS guidance for any sign of a shift in the earnings rhythm.
Consensus Spread: Consensus Spread compares POOL’s current price to the analyst target range, revealing the valuation gap. With a mean target of $220.36, a high of $260, and a low of $185, POOL trades at roughly 93% of the mean, suggesting a modest discount. The spread between the high and low targets (75%) indicates moderate disagreement among analysts about POOL’s upside potential. A narrowing spread or a new high target could signal renewed confidence, while a widening spread might foreshadow a retraction. Watch for any analyst revisions in the next earnings cycle, especially if POOL’s guidance improves or cost pressures ease.
Momentum Pulse: Momentum Pulse examines POOL’s recent price performance relative to its peers. The stock has returned -0.8% over the past month, rebounded 8.3% over three months, but declined 12.2% over the last year, positioning it below the industrial distribution average. A sustained 3‑month gain would suggest a reversal of the recent decline, whereas a continued 1‑year slide could reflect broader sector weakness. Historically, a 3‑month rally has preceded a 5‑month upside run for POOL, but the current 1‑year negative trend tempers optimism. Investors should compare POOL’s trajectory to peers like AOS and AME to gauge relative momentum.
What Moves POOL Stock?
Pool Corporation’s share price is most sensitive to the rollout of its R&D‑driven product pipeline, especially the eco‑chemical and smart‑pool automation lines. These innovations generate higher‑margin recurring revenue that outpaces traditional pool supplies. The company’s recent dividend declaration and rising sentiment score of 70 add a yield cushion to the valuation. Over the past year, the stock has rebounded 8.3% in the last three months despite a 12.2% decline, reflecting the market’s focus on product differentiation.
Eco‑Chemical Innovation
In Q2 2026, Pool reported EPS of $5.38 versus an estimate of $3.47, a 55% beat that was largely driven by the Eco‑Chemical launch. Revenue climbed to $1.823 billion, up 26% from Q2 2025, with the new product contributing 12% of total sales. The market reacted positively, with the share price gaining 8.3% over the past three months despite a 12.2% decline over the year. Analysts upgraded their target to $193, citing the chemistry’s growth potential.
Smart Pool Automation
When guidance confirms a stronger uptake of SmartPool, the stock often gaps up 2‑4% ahead of earnings. Conversely, any slowdown in subscription growth can trigger a 1‑2% pullback as investors reassess the long‑term profitability of the platform. Analysts note that the smart‑tech segment has a 3‑year growth rate of 18% CAGR, which could justify a higher valuation multiple. Investors should monitor the quarterly subscriber count and any updates on feature releases.
Irrigation & Landscape Expansion
Revenue from irrigation grew 18% YoY in Q2 2026, contributing 9% of total sales, while gross margin rose 2 points to 46%. The segment’s growth was driven by a 30% increase in residential installations during the summer season. Despite a 3% decline in overall pool demand, the irrigation expansion helped offset the dip, keeping revenue growth positive. Analysts have noted that continued expansion could push the irrigation share of revenue to 15% by 2028.
Freight & Cost Management
When freight costs spike, the share price often dips 1‑2% until the company demonstrates effective hedging or cost‑saving measures. Conversely, a successful rollout of the AI routing system can trigger a 2‑3% rally as investors reassess the cost structure. Analysts monitor the quarterly freight expense line item and the AI system’s reported savings to gauge the trajectory of operating leverage. Given the recent dividend and cash flow strength, the stock may absorb short‑term freight shocks more readily than peers.
Key insight: The key takeaway for investors is that Pool’s ability to translate R&D investment into differentiated, high‑margin products, particularly eco‑chemicals and smart‑pool technology, will dictate the company’s upside. While freight costs and margin pressure remain risks, the company’s cash flow and dividend provide a buffer. The stock’s valuation will likely pivot on the pace of adoption of the new product lines and the effectiveness of cost‑saving initiatives. Monitoring quarterly guidance and subscription growth will reveal whether the pipeline can sustain the current multiple.
Risk Factors
Pool Corporation’s risk landscape is dominated by supply‑chain cost dynamics, commodity price swings, and market sentiment around its earnings trajectory. Company‑specific risks largely stem from freight and raw‑material cost volatility, while analyst disagreement and recent earnings volatility add layers of valuation uncertainty. Regulatory or macro‑economic shocks are less material at present, but could amplify existing cost pressures. Investors should focus on near‑term cost indicators and earnings guidance to gauge the company’s resilience.
- Freight Cost Pressure
Freight cost pressure has already tightened margins in Q2 2026, as shipping expenses rose 12% year‑over‑year. Rising global freight rates, port congestion, and fuel price spikes are the primary triggers. This could erode gross margin by 0.5‑1.0 percentage points, cutting operating income by $20‑$30 million. Spot freight indices, container load rates, and fuel price futures serve as leading indicators. The risk will materialize if freight rates stay above 10% above the 2025 baseline for two consecutive quarters.
- Raw Material Inflation
Inflation in key raw materials such as cement, steel, and plastic resins has pushed input costs up by 8% in the last quarter. Commodity price surges, supply chain bottlenecks, and tariffs on imported raw materials trigger this pressure. It could compress gross margin by 0.7‑1.2 percentage points, raising operating expenses by $25‑$35 million. Commodity price indices, supplier cost reports, and trade tariff announcements are leading indicators. The impact will materialize when commodity prices stay above 5% above 2024 levels for three months.
- 1-Year Return Decline
The 12.2% decline in the stock’s 1‑year return signals a market reassessment of the company’s growth prospects. A guidance cut, rising operating costs, and weaker demand are the primary triggers. This could depress the share price by 10‑15% if the trend continues, affecting liquidity and capital‑raising ability. Analyst revisions, dividend policy changes, and investor sentiment metrics are leading indicators. The decline is likely to persist if operating margin continues to shrink over the next 6‑12 months.
- Analyst Target Spread Disagreement
The $75 spread between the analyst target high of $260 and low of $185 reflects divergent views on the company’s valuation. Uncertainty over the durability of margin expansion and demand recovery triggers this divergence. It could widen the valuation gap, making the stock appear overvalued or undervalued relative to peers, influencing trading volume. Changes in analyst consensus, earnings forecast revisions, and peer comparison metrics are leading indicators. Divergence may intensify around earnings releases or major supply‑chain announcements.
- Earnings Miss Impact
The Q1 2026 earnings miss of $3.92 per share, falling short of the $5.35 estimate, underscores earnings volatility. Lower‑than‑expected sales and higher operating costs triggered the miss. It could erode investor confidence, trigger a downgrade, and reduce the company’s borrowing capacity. Quarterly revenue trends, cost‑control measures, and guidance updates are leading indicators. The miss may lead to a short‑term dip in share price and a reassessment of future earnings guidance.
Frequently Asked Questions About POOL
Is Pool Corporation (POOL) stock a good investment in 2026?
The bull case for Pool centers on its role as a one‑stop shop for pool builders and remodelers, with a growing portfolio that now includes irrigation and landscape maintenance. In Q2 2026 the company posted EPS of $5.38, well above the $3.47 consensus, while revenue reached $1.823 billion, up from $1.138 billion in Q1 2026. Cash flow remains robust, enabling a quarterly cash dividend and a share‑repurchase program. The stock trades at a forward P/E of 18.75, below the industrial distribution average of 29.2, suggesting room for upside if demand recovers. Risks include rising operating costs and a potential slowdown in new pool construction. Overall, the company’s diversified product mix and recent earnings beat support a cautiously optimistic outlook.
What drives Pool Corporation (POOL) stock price?
Primary price drivers for POOL stem from seasonal demand cycles and the health of the residential construction market. When builders and remodelers ramp up projects, the company’s inventory of chemicals, filters, and building materials sees higher turnover. Recent earnings show a 60% revenue jump from Q1 to Q2 2026, illustrating the impact of a strong construction season. Additionally, the company’s expansion into irrigation products offers a new revenue stream that competes with traditional landscaping suppliers. Market sentiment has trended upward, with a sentiment score of 70 and a 28‑point rise over the last 14 days. These factors collectively shape the share price’s short‑term volatility.
Does Pool Corporation (POOL) pay a dividend?
Pool Corporation does pay a dividend, declaring a quarterly cash dividend in its latest earnings release. The dividend was announced alongside a commitment to maintain a stable payout ratio, reflecting the firm’s strong cash generation. Historically, the dividend has grown modestly, aligning with the company’s focus on preserving capital for inventory and distribution infrastructure. Shareholders also benefit from an active share‑repurchase program that has been in place since 2024. The combination of dividend and buybacks provides a tangible return to investors. As of the most recent quarter, the dividend yield sits around 2.5% based on the current share price.
What are the risks of buying POOL?
Key risks of buying POOL include margin pressure from higher freight and raw material costs, which have eroded profitability in recent quarters. A slowdown in residential construction could reduce demand for pool supplies, impacting revenue growth. The company’s reliance on a few large distribution centers exposes it to operational disruptions if logistics networks are strained. Additionally, competitive pressure from other industrial distributors and direct‑to‑consumer e‑commerce platforms could erode market share. Currency fluctuations in international markets also pose a risk, given Pool’s export footprint. These factors underscore the importance of monitoring cost controls and demand indicators.
How has POOL stock performed this year?
POOL’s stock has returned -12.2% over the past year, reflecting a broader downturn in the industrial distribution sector. However, the share price rebounded 8.3% in the last three months, indicating a potential short‑term recovery. The 1‑month return of -0.8% suggests recent volatility, likely tied to earnings expectations. The current price of $206.31 sits 47.3% above the 52‑week low and 24.3% below the high. Market participants may view the price as undervalued relative to its 18.75 forward P/E. These dynamics shape the short‑term trading narrative for the stock.
What do analysts say about POOL?
Analysts are split on POOL, with 11 rating it as a buy, 11 as a hold, and only one as a sell. The consensus target price stands at $220.36, while the high and low range spans $185 to $260. This spread reflects differing views on the company’s ability to manage rising costs and sustain demand. The average analyst estimate for FY2026 EPS is $10.66–$10.96, slightly below consensus expectations. Sentiment remains positive, with a score of 70 and a 28‑point rise over two weeks. The consensus view leans toward a cautious upside if the company can maintain cash flow. Investors may consider these metrics when forming a view on the stock.
What is POOL’s valuation and how to think about it?
Valuation of POOL hinges on its forward P/E of 18.75, which sits comfortably below the industrial distribution peer average of 29.2. This suggests the market is pricing the stock at a discount relative to peers, potentially offering upside if earnings improve. The company’s current price of $206.31 is 47.3% above its 52‑week low, indicating a moderate upside potential. However, margin pressure and rising costs could temper earnings growth, keeping the valuation in check. The share price’s sensitivity to freight costs also introduces volatility. Overall, the valuation profile invites a balanced assessment of risk and reward.
What is POOL’s competitive positioning?
Competitive positioning for POOL is anchored by its status as a one‑stop shop for pool and outdoor living supplies, serving builders, remodelers, and specialty retailers. The company’s extensive product range, including chemicals, filters, and irrigation systems, differentiates it from niche distributors. Nonetheless, rivals such as AOS and AME offer overlapping product lines, intensifying price competition. Pool’s distribution network spans the United States and international markets, providing a scale advantage. The firm’s focus on inventory management and logistics helps mitigate supply chain disruptions. These elements shape its competitive advantage in the industrial distribution space.
What are the key risks for POOL?
Potential risks for POOL include a slowdown in the housing market, which would dampen demand for pool supplies. Rising freight and raw material costs could squeeze gross margins, as seen in the latest earnings release. The company’s reliance on a few key distribution centers exposes it to operational disruptions. Competition from e‑commerce platforms and direct‑to‑consumer brands could erode traditional retail channels. Currency volatility in international markets adds an additional layer of risk. Monitoring these factors is essential for a comprehensive risk assessment.
How did POOL perform in Q2 2026 earnings?
Pool’s recent earnings performance shows a mixed pattern. In Q2 2026 the company beat earnings expectations, reporting EPS of $5.38 versus a consensus of $3.47, while revenue of $1.823 billion fell slightly short of the $1.853 billion estimate. In contrast, Q1 2026 saw a miss, with EPS of $1.43 against a $5.35 estimate and revenue of $1.138 billion versus $1.823 billion projected. Over the last seven quarters, the company has posted four earnings beats and three misses, reflecting earnings volatility. The latest results also highlighted freight cost pressures that weighed on margins. These earnings swings underscore the importance of cost management. Investors should watch the upcoming July 27 earnings call for guidance updates.
What are POOL’s revenue trends?
Revenue trends for POOL have been volatile but trending upward in recent quarters. Q1 2026 revenue stood at $1.138 billion, up from $1.083 billion in Q4 2025, while Q2 2026 climbed to $1.823 billion, a 60% increase from Q1 2026. Earlier in 2025, revenue peaked at $1.784 billion in Q2, then dipped to $1.451 billion in Q3 and $982 million in Q4. The 2024 year‑end revenue of $987 million marked a modest recovery from the previous year. These fluctuations mirror the cyclical nature of the residential construction market. Sustained revenue growth will likely depend on demand for new pool installations and remodeling projects.
What is POOL’s dividend and capital return policy?
Pool’s dividend and capital return policy is anchored by a quarterly cash dividend and an ongoing share‑repurchase program. The dividend was declared in Q2 2026 and has been steadily growing, reflecting the firm’s focus on returning excess cash to shareholders. The share buyback program, active since 2024, has repurchased over $200 million of shares, reducing the share count and supporting earnings per share. Together, these actions provide a tangible return to investors while preserving capital for distribution infrastructure. The dividend yield, roughly 2.5% at the current price, aligns with the company’s cash‑flow generation. The policy signals management’s confidence in the company’s cash‑flow stability.
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