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FLS · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Flowserve Corporation (FLS) stock moving?
Flowserve beat Q3 2026 adjusted EPS estimates ($1.07 vs $0.98), raised the low end of its full-year adjusted EPS guidance, and reported a record $3.5B backlog up 20% year over year, with adjusted operating margin up 170 basis points. The company cut its full-year organic sales outlook to down 2.5% to down 1.5%, citing Middle East disruption that is expected to weigh on Q4 sales, which is the main counterweight. The stock jumped 11.9% on Oct 29 from $71.81 to $80.35 on about 3.7M shares, roughly double the recent daily average, and kept rising to a high of $86.46 on Nov 9. RBC's price target increase to $98 from $88 with an Outperform rating adds analyst support. Shares closed at $85.66 on Nov 10, near the recent high, after a pullback to $78.04 on Nov 5. Volume on Nov 10 was lower, at about 1.0M shares. Much of the post-earnings gain is already priced in, so the near-term path depends on whether Q4 sales hold up despite the Middle East headwinds.
News behind the analysis
- Flowserve Raises FY2026 Adj EPS Guidance from $4.05-$4.20 to $4.10-$4.20 vs $4.11 Est; Widens FY2026 Sales Guidance from $4.871B to $4.824B-$4.871B vs $4.867B EstFlowserve raised the low end of its FY2026 adjusted EPS guidance to $4.10-$4.20 and widened its sales guidance to $4.824B-$4.871B. The adjusted EPS range sits at or above the $4.11 consensus estimate.
- Flowserve Q3 Adj. EPS $1.07 Beats $0.98 Estimate, Sales $1.238B InlineThird-quarter adjusted EPS of $1.07 beat the $0.98 estimate, while sales of $1.238B were in line with expectations.
- Flowserve Reports Third Quarter 2026 Financial ResultsFlowserve reported Q3 2026 bookings of $1.38B, up 14%, and a record $728M of aftermarket bookings. Backlog reached $3.5B, up 20% year over year, the largest in company history.
- Flowserve Q3 2026 Earnings Call TranscriptThe transcript of the Q3 2026 earnings call covers management's commentary on results and outlook. Management cited ongoing Middle East disruption as a factor in the sales outlook.
- RBC Capital Maintains Outperform on Flowserve, Raises Price Target to $98RBC Capital kept its Outperform rating on Flowserve and raised its price target to $98.
- RBC Raises Price Target on Flowserve to $98 From $88, Keeps Outperform RatingRBC lifted its Flowserve price target to $98 from $88 and maintained its Outperform rating.
About Flowserve Corporation
Flowserve is a Dallas-based maker of industrial pumps, valves, mechanical seals and related services used in oil and gas, chemicals, power generation (including nuclear), water and other infrastructure markets. A large share of its business comes from servicing and supplying parts for its huge installed base of equipment, and it has recently been improving margins through its "Flowserve Business System" and 80/20 simplification efforts.
How it makes money
It sells original equipment (pumps, valves, seals) to engineering firms, equipment makers, distributors and plant owners, and earns recurring aftermarket revenue from parts, repairs and services. Aftermarket and original equipment bookings are roughly equal in size, at about $0.7 billion each per quarter in 2026. Total sales run at about $1.2 billion a quarter (roughly $4.7–4.8 billion a year), and the order backlog was a record of about $3.5 billion as of Q3 2026.
What usually moves FLS
- Oil, gas and chemical industry capital spending
- Nuclear and power-generation project activity
- Bookings, backlog and aftermarket demand
- Margin gains from 80/20 and cost initiatives
- Middle East project timing and global industrial cycle