Pool Corp (POOL -1.93%) is making a splash on Thursday morning. On a day when the S&P 500 (^GSPC +0.70%) is down 1.2%, the pool products giant rose as much as 10.6% after reporting great Q3 results.
POOL Pool
NASDAQ · As of 4:00 PM ET 10/26/26
Solid Q3 numbers and steady guidance
In the third quarter of 2026, Pool Corp's sales rose 3.7% year over year to $1.50 billion. Earnings held steady at $3.40 per diluted share. The average analyst was looking for earnings near $3.36 per share on revenues near $1.48 billion, so the company outperformed modestly across the board.
Price increases drove the top-line boost as the company passed on rising freight costs to the end customer. Looking ahead, management reaffirmed the full-year revenue and earnings targets provided with the Q2 report in July and the Q1 update in April.
Image source: Getty Images.
Pool Corp is still treading water
Today's jump was sorely needed because 2026 hasn't been kind to the company. Even now, Pool Corp's stock trades 37% lower over the last year with a 49% drop in two years. The stock lost its place on the S&P 500 table in June, and Berkshire Hathaway exited its Pool Corp position in May.
I do appreciate the company's ability to pass the freight-based inflation buck to its customers without gutting its revenue growth. At the same time, it's hard to get excited about a company aiming for single-digit percentage gains while the stock price has been trending down for years.
As a longtime Floridian with a backyard pool and a Pool Corp subsidiary in walking distance, I have a soft spot for this company. This morning, I used three items from that Pinch A Penny store to chase an audacious squirrel out of the patio, for instance. But I'm not a fan of the stock, which trades at bargain-bin P/E multiples for good reason.
