Pool Corporation's stock plummeted 10.70% during intraday trading on Thursday, following the release of its fourth-quarter 2025 results and 2026 earnings guidance that fell short of analyst expectations.
The swimming pool equipment distributor reported Q4 adjusted earnings of $0.84 per share, missing the FactSet consensus estimate of $0.97. Quarterly revenue of $982.2 million also came in below the expected $999.3 million. For the full year 2026, the company issued diluted EPS guidance of $10.85 to $11.15, which is below the analyst estimate of $11.64.
The weak outlook is attributed to soft demand for new pool equipment amid tariff-fueled price hikes. The company noted that its vendors increased prices following U.S. tariff policies, prompting Pool Corp to raise its own product pricing to preserve margins. This environment has led to a 13% increase in inventory to $1.5 billion as of December 31, partly due to purchasing ahead of anticipated price increases.
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