Building envelope solutions provider Carlisle Companies (NYSE: CSL) fell short of the market’s revenue expectations in Q1 CY2026, with sales falling 4% year on year to $1.05 billion. Its non-GAAP profit of $3.63 per share was 8.6% above analysts’ consensus estimates.

Is now the time to buy Carlisle? Find out by accessing our full research report, it’s free.

Company Overview

Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE: CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Regrettably, Carlisle’s sales grew at a sluggish 3.7% compounded annual growth rate over the last five years. This wasn’t a great result compared to the rest of the industrials sector, but there are still things to like about Carlisle.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Carlisle’s recent performance shows its demand has slowed as its annualized revenue growth of 1.9% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

We can better understand the company’s sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Carlisle’s organic revenue averaged 1.1% year-on-year declines. Because this number is lower than its two-year revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results.

This quarter, Carlisle missed Wall Street’s estimates and reported a rather uninspiring 4% year-on-year revenue decline, generating $1.05 billion of revenue.

Looking ahead, sell-side analysts expect revenue to grow 3.6% over the next 12 months. Although this projection suggests its newer products and services will catalyze better top-line performance, it is still below the sector average. At least the company is tracking well in other measures of financial health.

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Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.

Carlisle has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 20%. This result isn’t too surprising as its gross margin gives it a favorable starting point.

Analyzing the trend in its profitability, Carlisle’s operating margin rose by 5.2 percentage points over the last five years, as its sales growth gave it operating leverage.

In Q1, Carlisle generated an operating margin profit margin of 17.1%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Carlisle’s EPS grew at 26.1% compounded annual growth rate over the last five years, higher than its 3.7% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into Carlisle’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Carlisle’s operating margin was flat this quarter but expanded by 5.2 percentage points over the last five years. On top of that, its share count shrank by 23.3%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Carlisle, its two-year annual EPS growth of 4.6% was lower than its five-year trend. This wasn’t great, but at least the company was successful in other measures of financial health.

In Q1, Carlisle reported adjusted EPS of $3.63, up from $3.61 in the same quarter last year. This print beat analysts’ estimates by 8.6%. Over the next 12 months, Wall Street expects Carlisle’s full-year EPS of $19.41 to grow 6.1%.

Key Takeaways from Carlisle’s Q1 Results

We enjoyed seeing Carlisle beat analysts’ adjusted operating income expectations this quarter. We were also glad its EBITDA outperformed Wall Street’s estimates. On the other hand, its revenue slightly missed and its organic revenue fell slightly short of Wall Street’s estimates. Overall, this print was mixed but still had some key positives. The stock traded up 6.6% to $388.42 immediately after reporting.

So should you invest in Carlisle right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).