Electrical and electronic products company Hubbell (NYSE: HUBB) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 15.3% year on year to $1.71 billion. Its non-GAAP profit of $5.52 per share was 2.4% above analysts’ consensus estimates.

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"Hubbell delivered strong performance in the second quarter, with double digit growth in sales, adjusted operating profit and adjusted earnings per share" said Gerben Bakker, Chairman, President and CEO.

Company Overview

A respected player in the electrical segment, Hubbell (NYSE: HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, Hubbell’s sales grew at a solid 9.8% compounded annual growth rate over the last five years. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Hubbell’s recent performance shows its demand has slowed as its annualized revenue growth of 5.7% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

Hubbell also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Hubbell’s organic revenue averaged 3.5% year-on-year growth. Because this number is lower than its two-year revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results.

This quarter, Hubbell reported year-on-year revenue growth of 15.3%, and its $1.71 billion of revenue exceeded Wall Street’s estimates by 2.8%.

Looking ahead, sell-side analysts expect revenue to grow 10.1% over the next 12 months, an improvement versus the last two years. This projection is admirable and suggests its newer products and services will fuel better top-line performance.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Hubbell has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 18.2%. This result isn’t too surprising as its gross margin gives it a favorable starting point.

Analyzing the trend in its profitability, Hubbell’s operating margin rose by 6.8 percentage points over the last five years, as its sales growth gave it immense operating leverage.

This quarter, Hubbell generated an operating margin profit margin of 20.4%, down 2.3 percentage points year on year. Since Hubbell’s operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Hubbell’s EPS grew at 18.9% compounded annual growth rate over the last five years, higher than its 9.8% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

We can take a deeper look into Hubbell’s earnings to better understand the drivers of its performance. As we mentioned earlier, Hubbell’s operating margin declined this quarter but expanded by 6.8 percentage points over the last five years. Its share count also shrank by 2.9%, and these factors together are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Hubbell, its two-year annual EPS growth of 11.3% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.

In Q2, Hubbell reported adjusted EPS of $5.52, up from $4.93 in the same quarter last year. This print beat analysts’ estimates by 2.4%. Over the next 12 months, Wall Street expects Hubbell’s full-year EPS to grow 9.7% from $19.35 to $21.22.

Key Takeaways from Hubbell’s Q2 Results

We enjoyed seeing Hubbell beat analysts’ revenue expectations this quarter. We were also glad its full-year EPS guidance exceeded Wall Street’s estimates. On the other hand, its EBITDA slightly missed. Overall, we think this was still a solid quarter with some key areas of upside. The stock traded up 1.9% to $508.10 immediately after reporting.

Hubbell may have had a good quarter, but does that mean you should invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).