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ESAB · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is ESAB Corporation (ESAB) stock moving?
ESAB reported Q3 2026 on Nov 4 with revenue of $824.52M, above the $803.78M estimate, but adjusted EPS of $1.30 missed the $1.32 estimate and FY2026 adjusted EPS guidance was lowered to $5.28-$5.33 from $5.40-$5.50, below the $5.38 consensus. The stock nonetheless rose 3.0% that day to $78.36 and kept climbing: it closed at $82.83 on Nov 6 on 2.55M shares, about twice the 30-day norm of roughly 1.1M, then closed at $89.93 on Nov 9 (+8.6%) before a 3.1% pullback to $87.13 on Nov 10 on 1.25M shares. Measured from the Oct 22 close of $66.89, the shares are up about 30%, and the intraday high of $90.51 on Nov 9 marks the top of the recent range. Analysts remain split in tone: UBS kept a Buy and cut its target from $145 to $115, while Evercore ISI maintained In-Line and lowered its target to $99, which is still above the current price. The rally came after the guidance cut, which suggests the market is focused on the revenue beat and sector-level momentum rather than the EPS shortfall. Because the target cuts and the guidance reduction are both recent and the news flow is limited to a single earnings cycle, conviction in either direction is modest.
News behind the analysis
- Evercore ISI Group Maintains In-Line on ESAB, Lowers Price Target to $99Evercore ISI kept its In-Line rating on ESAB and cut its price target to $99. The target sits about 14% above the Nov 10 close of $87.13.
- UBS Maintains Buy on ESAB, Lowers Price Target to $115UBS kept its Buy rating and lowered its price target to $115, reported by Benzinga.
- UBS Adjusts ESAB Price Target to $115 From $145UBS cut its ESAB price target from $145 to $115 while keeping its Buy rating.
- ESAB Corporation Reports Third-Quarter 2026 Financial ResultsQ3 2026 revenue was $824.52 million and diluted EPS was $0.58, with net income of $36.08 million.
- ESAB Q3 2026 Earnings Call TranscriptThe transcript of ESAB's third-quarter 2026 earnings call, held on Wednesday Nov 4, has been published.
- ESAB Lowers FY2026 Adj EPS Guidance from $5.40-$5.50 to $5.28-$5.33 vs $5.38 EstESAB cut its FY2026 adjusted EPS guidance to $5.28-$5.33, below the $5.38 consensus estimate and the prior $5.40-$5.50 range.
- ESAB Q3 Adj. EPS $1.30 Misses $1.32 Estimate, Sales $824.521M Beat $803.776M EstimateAdjusted EPS of $1.30 missed the $1.32 estimate, while sales of $824.521M beat the $803.776M estimate.
About ESAB Corporation
ESAB Corporation is a welding and cutting company based in North Bethesda, Maryland. It was founded in 1904 and spun off from Enovis (formerly Colfax) in 2022. It sells welding gear, consumables and gas control products in about 150 countries, with approximately 11,300 employees. It calls itself an 'industrial compounder': it grows by buying other companies, such as EWM, Aktiv and the inspection-technology firm Eddyfi (purchase completed in 2026), and it uses its EBXai business system to push for higher profit margins.
How it makes money
It sells welding and cutting equipment, filler metals and other consumables, automation such as collaborative welding robots, and gas control products like regulators and medical gas equipment. It sells to industries including construction, infrastructure, energy, shipbuilding and general manufacturing. Results are reported in two regions: Americas, and EMEA & APAC (Europe, Middle East, Africa and Asia-Pacific). Consumables bring in repeat sales, and management wants equipment to make up more than half of revenue. Its 2026 outlook is roughly $3 billion in core sales, with acquisitions adding about 9% growth.
What usually moves ESAB
- Industrial production and construction activity worldwide
- Acquisitions and how well they are integrated, such as Eddyfi and EWM
- Raw material costs and the ability to raise prices
- Currency swings and conditions in emerging markets
- Asbestos lawsuit liabilities