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RRX · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Regal Rexnord Corporation (RRX) stock moving?
Regal Rexnord beat Q3 2026 consensus on adjusted EPS ($2.91 vs $2.67) and sales ($1.588B vs $1.561B), and data center sales rose 307% year over year. The stock jumped about 12% on Nov 3 (from $160.93 to $179.93) on roughly 3.2M shares, about three times the typical daily volume, then fell to $160.30 by Nov 5 before recovering to $180.78 on Nov 9 and closing at $179.96 on Nov 10. The quality of the beat is mixed. Adjusted FY2026 EPS guidance was raised to $10.60-$10.90, but that includes a $0.58 one-time benefit from IEEPA tariff refunds; excluding it, the midpoint is about $10.17 versus about $10.60 before, implying a lower underlying outlook. Adjusted Q3 EBITDA was $351M, or $337M excluding the refunds, versus $339M a year earlier. GAAP EPS guidance was cut sharply to $3.76-$4.06 from $5.42-$5.92 because of a $119M goodwill impairment, mainly tied to the Autonomous Mobile Solutions unit, which is now being explored for sale within a broader portfolio review. Net debt to adjusted EBITDA was 2.9x. Both KeyBanc ($240) and Citigroup ($210) reiterated Buy ratings with targets above the current price. Price action and analyst support point positive, while the refund-driven guidance, the impairment and the unresolved divestiture argue for caution.
News behind the analysis
- Regal Rexnord Q3 Adj. EPS $2.91 Beats $2.67 Estimate, Sales $1.588B Beat $1.561B EstimateQ3 2026 adjusted EPS of $2.91 and sales of $1.588B both beat consensus estimates of $2.67 and $1.561B.
- Regal Rexnord Lowers FY2026 GAAP EPS Guidance from $5.42-$5.92 to $3.76-$4.06 vs $6.55 EstThe company cut FY2026 GAAP EPS guidance well below estimates, mainly due to a $1.78-per-share goodwill impairment.
- Regal Rexnord Raises FY2026 Adj EPS Guidance from $10.35-$10.85 to $10.60-$10.90 vs $10.79 EstAdjusted FY2026 EPS guidance was raised to $10.60-$10.90, a figure that includes a $0.58 net benefit from IEEPA tariff refunds.
- Regal Rexnord Exploring Sale Of Autonomous Mobile Solutions Business; Begins Comprehensive Portfolio Review With Outside AdvisersRegal Rexnord is exploring a sale of its Autonomous Mobile Solutions business and has started a broader portfolio review with outside advisers.
- Regal Rexnord Records $119M Goodwill Impairment, Mainly Tied To Autonomous Mobile Solutions UnitA $119M goodwill impairment was recorded in Q3, mainly linked to the Autonomous Mobile Solutions unit.
- Regal Rexnord Q3 Data Center Sales Up 307% YoY; Up 169% Excluding E-PodsData center sales rose 307% year over year in Q3, or 169% excluding E-Pods.
- Regal Rexnord Q3 Daily Orders Up 6% YoY; Up 13% Excluding Data CentersDaily orders grew 6% year over year in Q3, or 13% excluding data centers.
- Regal Rexnord Reports Third Quarter 2026 Financial ResultsThe company reported Q3 2026 sales of $1,588 million and updated its full-year earnings guidance.
- KeyBanc Maintains Buy Rating and $240 Price Target on Regal RexnordKeyBanc reaffirmed its Buy rating and $240 price target on RRX after the quarterly results.
- Citigroup Maintains Buy on Regal Rexnord, Raises Price Target to $210Citigroup kept its Buy rating on Regal Rexnord and raised its price target to $210.
About Regal Rexnord Corporation
Regal Rexnord is a Milwaukee-based maker of electric motors, power transmission parts (like gears, bearings and couplings) and automation and motion-control products used in factories, buildings, aerospace and data centers. It was formed by the 2021 merger of Regal Beloit and Rexnord, and it is currently growing fast in data-center products while exploring a sale of one of its businesses (AMS).
How it makes money
It sells engineered industrial parts to equipment makers, distributors and end users through three main segments. Automation & Motion Control (AMC) covers motion-control, aerospace and data-center products, including its newer EPOD power-distribution product. Industrial Powertrain Solutions (IPS) covers bearings, gearing and couplings. Power Efficiency Solutions (PES) covers motors and fans for HVAC and commercial uses. Total revenue is roughly $6.2 billion for 2026 (approximate company guidance), and Q3 2026 sales were about $1.59 billion.
What usually moves RRX
- Industrial and manufacturing activity
- Data-center and AI infrastructure spending
- HVAC and residential demand cycles
- Tariffs and input costs
- Debt reduction and portfolio moves (e.g., AMS sale)