POOL Corporation Q4 Earnings Miss Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 19 2026
0mins
Source: seekingalpha
Pool Corporation's stock fell 12.77% as it hit a 52-week low amid disappointing earnings results.
The company reported a Q4 GAAP EPS of $0.85, missing expectations by $0.12, which indicates pressure on profitability that could affect investor confidence. Additionally, revenue declined slightly by 0.5% year-over-year to $982.2 million, falling short of expectations, reflecting weak market demand. Despite a cautious outlook for 2026, with anticipated earnings between $10.85 and $11.15 per diluted share, concerns about short-term performance may impact the stock price further.
This disappointing performance highlights the challenges Pool Corporation faces in a fluctuating market, and investors may need to reassess their expectations for the company's growth trajectory moving forward.
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Analyst Views on POOL
Wall Street analysts forecast POOL stock price to rise
10 Analyst Rating
3 Buy
6 Hold
1 Sell
Hold
Current: 215.220
Low
240.00
Averages
304.29
High
360.00
Current: 215.220
Low
240.00
Averages
304.29
High
360.00
About POOL
Pool Corporation is a wholesale distributor of swimming pool supplies, equipment, and related leisure products. The Company also distributes irrigation and landscape products in the United States. The Company operates approximately 448 sales centers in North America, Europe, and Australia through its five distribution networks: SCP Distributors (SCP), Superior Pool Products (Superior), Horizon Distributors (Horizon), National Pool Tile (NPT), and Sun Wholesale Supply (Sun Wholesale). The Company distributes swimming pool supplies, equipment, and related leisure products domestically through its SCP and Superior sales center networks through SCP network. Its Horizon sales centers offer organic fertilizers, organic pesticides, and irrigation and drainage products that reduce water usage and soil erosion. Sun Wholesale distributes swimming pool supplies, equipment, and related leisure products, primarily servicing independently owned and operated Pinch A Penny, Inc. franchise locations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Two Companies Removed from S&P 500
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- Brand Value Enhancement: By acquiring a 49% stake in Italy's Rao's brand, Campbell has further solidified its market position, with Rao's net sales exceeding $1 billion over the past 12 months, enhancing the company's brand equity and long-term growth potential.
- Dividend Growth Potential: Pool Corporation's dividend yield is around 2.4%, but its 22 consecutive years of dividend increases and a 17% average growth rate over the past decade showcase its strong compounding ability, attracting income-seeking investors.
- Market Risk Consideration: Pool Corp.'s business is closely tied to housing market activity; although first-quarter net sales grew by 6%, high interest rates may lead consumers to defer large expenditures, potentially impacting future sales growth, necessitating careful risk assessment by investors.
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Impact Analysis of S&P 500 Component Changes
- S&P 500 Component Changes: The removal of Campbell's and Pool Corp. from the S&P 500 forces index funds to sell, creating temporary price pressure that patient dividend investors may exploit for value opportunities.
- Campbell's Dividend Advantage: Currently offering a yield over 7%, Campbell's has a 51-year dividend payment history and a payout ratio of 76%, providing stability despite slow growth, although it faces challenges like weak volumes and operational headwinds.
- Pool Corp.'s Growth Potential: With a current yield of about 2.4%, Pool Corp. has raised its dividend for 22 consecutive years, achieving an average annual growth of approximately 17% over the past decade, making it appealing for dividend growth investors.
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- Strong Stock Performance: Marvell's stock has tripled this year, and despite some pullbacks, it surged over 32% in a single day after Nvidia's CEO labeled it as the next trillion-dollar company, reflecting strong market confidence in its growth potential.
- Leader in Optical Interconnects: As a leader in optical interconnects, Marvell is well-positioned to capitalize on the growing demand for high-speed data transfer in AI chip clusters, with interconnect revenue projected to increase by 70% this year due to the limitations of traditional copper wiring.
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See More
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- Stock Surge: Following Nvidia CEO Jensen Huang's endorsement of Marvell as the next trillion-dollar company, its shares surged over 32% in a single day, reflecting strong market interest in its optical interconnect business.
- Leader in Optical Interconnects: Marvell leads in optical DSPs, with interconnect revenue projected to grow by 70% this year, indicating its strategic importance in the rapidly expanding AI market.
- ASIC Market Competition: While Marvell is experiencing rapid growth in the ASIC market, it faces competition from Taiwanese firms, particularly regarding Amazon's Trainium chips, which may impact its market leadership.
See More
Analysis of Two Companies Removed from S&P 500
- Dividend Yield Analysis: Campbell's current dividend yield exceeds 7%, and despite facing weak volumes and operational challenges, its 51-year dividend history and 76% payout ratio provide a stable income source for investors, demonstrating resilience in adverse conditions.
- Brand Value Enhancement: By acquiring a 49% stake in Italy's Rao's brand, Campbell has further solidified its market position, with Rao's net sales exceeding $1 billion over the past 12 months, enhancing the company's brand equity and long-term growth potential.
- Dividend Growth Potential: Pool Corporation's dividend yield is around 2.4%, but its 22 consecutive years of dividend increases and a 17% average growth rate over the past decade showcase its strong compounding ability, attracting income-seeking investors.
- Market Risk Consideration: Pool Corp.'s business is closely tied to housing market activity; although first-quarter net sales grew by 6%, high interest rates may lead consumers to defer large expenditures, potentially impacting future sales growth, necessitating careful risk assessment by investors.
See More
Impact Analysis of S&P 500 Component Changes
- S&P 500 Component Changes: The removal of Campbell's and Pool Corp. from the S&P 500 forces index funds to sell, creating temporary price pressure that patient dividend investors may exploit for value opportunities.
- Campbell's Dividend Advantage: Currently offering a yield over 7%, Campbell's has a 51-year dividend payment history and a payout ratio of 76%, providing stability despite slow growth, although it faces challenges like weak volumes and operational headwinds.
- Pool Corp.'s Growth Potential: With a current yield of about 2.4%, Pool Corp. has raised its dividend for 22 consecutive years, achieving an average annual growth of approximately 17% over the past decade, making it appealing for dividend growth investors.
- Market Risk Considerations: Pool Corp.'s performance is closely tied to housing market activity and consumer confidence, and if interest rates remain high, discretionary sales may suffer, while Campbell's offers a more stable high-yield option for income-focused investors.
See More
Investment Choice Analysis: American Eagle vs. Pool
- American Eagle Financials: In fiscal 2025, American Eagle reported revenues exceeding $5.5 billion, a 4% increase year-over-year, although net income fell to $185 million with a net margin decline from 6.2% to 3.5%, indicating cost pressures impacting profitability and necessitating strategic brand adjustments.
- Pool's Market Position: As the world's largest wholesale distributor of swimming pool supplies, Pool generated nearly $5.3 billion in revenue for 2025 with a net income of $406 million and a net margin of 7.7%, showing resilience despite a slight revenue decline, supported by ongoing maintenance demand.
- Risk Assessment: American Eagle faces macroeconomic risks, including inflation and interest rate volatility that may dampen consumer spending, while Pool's performance is tied to the housing market's health, where prolonged recessions could lead to deferred luxury upgrades, impacting market share.
- Valuation Comparison: American Eagle's forward P/E ratio stands at 10.1x, below industry averages, while Pool's is at 18.0x, suggesting both stocks may be undervalued, prompting investors to consider long-term growth potential in their investment decisions.
See More
Marvell Set to Join S&P 500, Boosting Market Position
- Optical Interconnect Opportunity: Marvell's leadership in optical interconnects positions it favorably to meet the growing demand for high-speed connections in data centers, with interconnect revenue projected to increase by 70% this year, significantly enhancing its market share and competitiveness.
- S&P 500 Inclusion Impact: Marvell's upcoming inclusion in the S&P 500 index not only validates the company's success but is also likely to attract passive investment funds, potentially driving up the stock price and boosting investor confidence.
- Custom Chip Business Challenges: While Marvell shows strong performance in the ASIC market, its leading position with Amazon's Trainium chips is threatened by Taiwanese AI chip companies, which could impact its future market share and profitability.
- Valuation Risks: With a forward P/E ratio of 64, Marvell's stock appears overvalued, prompting analysts to recommend waiting for a price pullback before considering investment, thereby reducing risk and enhancing potential returns.
See More
Marvell Technology Set to Join S&P 500 Index
- S&P 500 Inclusion Impact: Marvell Technology is set to join the S&P 500, a move that not only validates the company's success but also attracts passive investment funds, likely boosting its stock price and enhancing market recognition.
- Strong Stock Performance: Marvell's stock has tripled this year, and despite some pullbacks, it surged over 32% in a single day after Nvidia's CEO labeled it as the next trillion-dollar company, reflecting strong market confidence in its growth potential.
- Leader in Optical Interconnects: As a leader in optical interconnects, Marvell is well-positioned to capitalize on the growing demand for high-speed data transfer in AI chip clusters, with interconnect revenue projected to increase by 70% this year due to the limitations of traditional copper wiring.
- ASIC Market Competition: While Marvell holds a significant position in the ASIC market and supplies IP for Amazon's Trainium chips, it faces competitive pressure from Taiwanese firms, which could impact its market leadership, necessitating close monitoring of its future performance.
See More
Marvell Technology Set to Join S&P 500 Index
- S&P 500 Inclusion: Marvell Technology is set to join the S&P 500 index, which is expected to attract significant passive investment funds, boosting its stock price and validating the company's success.
- Stock Surge: Following Nvidia CEO Jensen Huang's endorsement of Marvell as the next trillion-dollar company, its shares surged over 32% in a single day, reflecting strong market interest in its optical interconnect business.
- Leader in Optical Interconnects: Marvell leads in optical DSPs, with interconnect revenue projected to grow by 70% this year, indicating its strategic importance in the rapidly expanding AI market.
- ASIC Market Competition: While Marvell is experiencing rapid growth in the ASIC market, it faces competition from Taiwanese firms, particularly regarding Amazon's Trainium chips, which may impact its market leadership.
See More
