Applied Industrial Technologies (AIT)
NYSEIndustrialsIndustrial - DistributionSnapshot 2026-09-04
$325.57+0.96%
Close 2026-09-04 · 1-day change
NYSEIndustrialsIndustrial - DistributionSnapshot 2026-09-04
Intact: The reason to own it still holds.
Applied Industrial Technologies grows revenue about 7% yearly. Profit margins improve with gross profit rising to $380.8 million in Q3 2026. The company is buying back up to 3 million shares, showing strong capital return. Earnings per share guidance is raised to about $10.7 for fiscal 2026.
Revenue growth may slow as prior guidance was lowered in 2025. Profit margin gains could stall given sector headwinds. The recent 4% stock pullback shows some investor caution amid soft guidance posture.
The stock price sits about 7% above our fair value near $299, reflecting roughly 7% revenue growth expected by analysts. Our fair value is 15% below the Street median, indicating some upside if the company outperforms consensus.
Breaks if: EPS guidance falls below $10.0 for FY26
Breaks if: gross profit falls below $360 million quarterly
Breaks if: YoY revenue growth falls below 5% next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable growth opportunity with a focus on organic sales growth and margin expansion. The current thesis is intact, supported by recent strong financial results, but faces potential risks from sector performance.
The market appears to have a neutral valuation for AIT, with a slight premium compared to peers. Expectations are somewhat stretched, indicating that investors are anticipating continued growth without significant surprises.
Fundamentals are likely to remain strong, given management's focus on growth and margin improvement. Recent financial performance has shown positive momentum, but there is a low probability of missing estimates, which could impact sentiment.
The long-term thesis hinges on the performance of sector bellwethers like GWW, FAST, and FERG. If these companies continue to perform well, AIT could benefit from positive sector momentum; however, any negative guidance from these peers could pose risks.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. The company is driving organic sales growth and expanding market share. There are no new threats impacting the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: No meaningful buyback activity within 12 months
The company has announced a share repurchase program authorizing the buyback of up to 3 million shares.
Over the next 1 to 3 years, AIT's performance will depend on its ability to maintain growth and navigate sector challenges. Not investment advice.