Engineered components manufacturer for critical industries ITT Inc. (NYSE: ITT) reported revenue ahead of Wall Street’s expectations in Q3 2026, with sales up 44.2% year on year to $1.44 billion. Its non-GAAP profit of $2.26 per share was 8.6% above analysts’ consensus estimates.

Is now the time to buy ITT? Find out in our full research report (it’s free for active Edge members).

StockStory’s take

ITT delivered revenue and adjusted earnings above Wall Street’s expectations in the latest quarter, as robust demand in aerospace, defense, and key industrial segments drove strong order and sales growth. Management highlighted broad-based expansion across its Connect & Control Technologies and Flow Technologies businesses, with particular strength in aerospace connectors and project wins in oil and gas. CEO Luca Savi credited the “powerful flywheel” of healthy order momentum and execution in high-growth markets, while also acknowledging persistent inflationary pressures and operational challenges in certain regions.

Looking ahead, ITT’s updated guidance reflects confidence in continued top-line growth and earnings expansion, driven by a large backlog and operational improvements across core segments. Management raised its full-year adjusted EPS outlook, citing productivity initiatives, cost synergies from the SPX FLOW acquisition, and ongoing investments in automation and capacity. Savi noted, “Our relentless execution continues to deliver margin expansion and accelerate earnings,” but cautioned that headwinds in automotive and operational inefficiencies in some geographies may temper near-term margin gains.

Key insights from management’s remarks

Management attributed the outperformance to order momentum in aerospace and defense, strong execution in Flow Technologies, and early returns on SPX FLOW integration. Margin headwinds emerged due to mix and acquisition impacts.

• Aerospace and defense orders surge: Orders in Connect & Control Technologies rose sharply, supported by aerospace production recovery and significant defense contract wins, particularly through kSARIA’s expansion in submarine and tactical programs.
• SPX FLOW integration boosts growth: The acquisition of SPX FLOW contributed meaningfully to sales growth, with notable strength in nutrition, health, and mixers. Management emphasized ongoing efforts to localize manufacturing and drive commercial synergies, especially in North America and China.
• Productivity and pricing offset inflation: Margin expansion in several segments was driven by disciplined pricing actions and productivity improvements, which offset inflationary cost pressures. However, Flow Technologies margins were diluted by acquisition mix and region-specific inefficiencies.
• Operational challenges in Middle East: While operations in Israel and Saudi Arabia delivered revenue growth, CEO Luca Savi noted that “the cost of transportation and operational inefficiencies” weighed on local margins, especially amidst regional disruptions.
• Leadership changes for transformation: Davide Barbon was appointed to lead both Motion Technologies and Connect & Control Technologies, a move intended to replicate process improvements and commercial discipline across segments with the highest growth and margin potential.

Drivers of future performance

Management expects continued order strength in aerospace and defense, incremental SPX FLOW synergies, and operational efficiency to drive high-single-digit organic growth and margin expansion.

• Aerospace and defense tailwinds: Management believes ongoing recovery in commercial aerospace production and sustained investment in global defense programs will underpin order growth, especially in connectors and specialty components.
• SPX FLOW synergy realization: Accelerated cost and revenue synergy capture from the SPX FLOW integration—including supply chain, localization, and commercial initiatives—are projected to support earnings growth and operational leverage.
• Automotive and regional headwinds: Motion Technologies faces near-term volume pressure as some auto OEMs plan early year-end shutdowns, and margin improvement in certain geographies (particularly the Middle East) remains challenged by inefficiency and elevated costs.

Catalysts in upcoming quarters

In the coming quarters, the StockStory team will be watching (1) execution on SPX FLOW integration and realization of targeted synergies, (2) sustained momentum in aerospace and defense orders translating to revenue and margin gains, and (3) the impact of operational improvements in geographies facing inefficiencies such as the Middle East. Progress in automotive productivity initiatives and new product commercialization will also be key signposts.

ITT currently trades at $202.64, in line with $200.92 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

High quality stocks for all market conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.