Applied Industrial Technologies raises fiscal 2027 earnings forecast on lower share count

First-quarter revenue of $1.29B came in below the $1.30B expected, while earnings per share beat by $0.05.

Applied Industrial Technologies is raising its earnings forecast for fiscal 2027. The company now expects earnings per share (EPS) of $11.70 to $12.20, up $0.05 at each end from $11.65 to $12.15. The change reflects a lower number of diluted shares after the company bought back stock in the first quarter.

First-quarter EPS came in at $2.97 on a GAAP basis, which means under generally accepted accounting principles. That was $0.05 above expectations. Revenue was $1.29B, below the $1.30B expected. Chief Executive Neil A. Schrimsher said EPS rose 13% year over year. He pointed to favourable demand, mid-teens organic growth in Engineered Solutions, and strong margins. Together, he said, these pushed results to the high end of the company's guidance range.

The board declared a quarterly cash dividend of $0.51 a share. It is payable on November 30, 2026, to shareholders of record on November 13, 2026. The board also named Joe A. Raver as its next independent chairman. He succeeds Peter C. Wallace, who retired from the board on October 20, 2026.

The raise is small, and it rests on the share count rather than the outlook for the business. The company held its sales growth range at 4.0% to 6.5% and its EBITDA margin range at 12.5% to 12.8%. EBITDA is earnings before interest, taxes, depreciation and amortisation. So the higher EPS range comes from buybacks, not from the demand and margin strength cited for the quarter. Revenue also fell short of expectations. The next report will show whether sales can reach the 4.0% to 6.5% growth range.