Stifel raised its price target on Ingersoll-Rand stock (NYSE: IR) to $101 from $87 on Monday, while retaining a Hold stance. The revised target sits just shy of the stock's 52-week high of $100.96, with IR trading at $99.64 at the time of the update.
The brokerage firm pointed to Ingersoll-Rand's fourth-quarter 2025 results as the catalyst for the move. The company posted adjusted earnings per share of $0.96, topping analyst expectations of $0.90. Revenue for the quarter reached $2.09 billion versus forecasted revenue of $2.04 billion. Over the trailing twelve months, Ingersoll-Rand reported EBITDA of $1.92 billion, extending a run of sustained profitability.
Market reaction was swift: Ingersoll-Rand shares advanced 4.6% after the earnings release, outpacing a 0.8% gain in the XLI industrial sector ETF.
Looking ahead, company guidance for fiscal 2026 calls for organic revenue growth of 0% to 2%, a range that management said reflects current market steadiness and a continuation of prevailing demand trends. Management expects volume to be flat for the year. Despite flat volumes, analysts are modeling roughly 4% revenue growth for fiscal 2026, a projection that the report interprets as indicating the company's continued ability to generate pricing-led revenue gains.
On profitability, Stifel highlighted expectations for a slight deterioration in full-year EBITDA margins - a decline of 10 basis points at the midpoint of guidance. The firm noted the company anticipates headwinds in the first half of 2026 driven by price versus cost dynamics as the company laps annualized tariff impacts. Management and Stifel both expect margin improvement to return in the second half of 2026. The research note added that any momentum in shorter-cycle industrial end markets could present upside to the company's guidance.
The combination of an earnings beat, higher price target from Stifel and the company's guidance underpin investor attention on Ingersoll-Rand's near-term earnings quality and margin trajectory. While the stock sits near its 52-week peak, the mixed signals around volumes and near-term margin pressure frame the outlook for 2026.