Gates Industrial (NYSE:GTES) Issues FY 2026 Earnings Guidance

Gates Industrial (NYSE:GTES) issued an update on its FY 2026 earnings guidance on Friday morning. The company provided EPS guidance of 1.520-1.680 for the period, compared to the consensus EPS estimate of 1.590. The company issued revenue guidance of $3.5 billion-$3.6 billion, compared to the consensus revenue estimate of $3.6 billion.

Gates Industrial Stock Down 5.9%

GTES traded down $1.51 on Friday, hitting $24.10. The company had a trading volume of 4,461,676 shares, compared to its average volume of 1,904,514. The stock has a fifty day moving average price of $24.57 and a 200-day moving average price of $23.75. Gates Industrial has a 12-month low of $19.26 and a 12-month high of $28.47. The company has a debt-to-equity ratio of 0.61, a quick ratio of 2.42 and a current ratio of 3.37. The stock has a market capitalization of $6.14 billion, a price-to-earnings ratio of 17.66 and a beta of 1.28.

Gates Industrial (NYSE:GTES) last posted its earnings results on Friday, May 1st. The company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.03. Gates Industrial had a return on equity of 10.36% and a net margin of 7.30%.The company had revenue of $851.10 million for the quarter, compared to analyst estimates of $859.72 million. During the same quarter in the previous year, the firm earned $0.36 earnings per share. The firm’s quarterly revenue was up .4% compared to the same quarter last year. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. Analysts predict that Gates Industrial will post 1.53 EPS for the current fiscal year.

Wall Street Analyst Weigh In

GTES has been the topic of a number of recent research reports. Robert W. Baird set a $39.00 target price on Gates Industrial in a research report on Friday, February 13th. Barclays dropped their target price on Gates Industrial from $32.00 to $28.00 and set an “overweight” rating on the stock in a research report on Wednesday, April 1st. Weiss Ratings lowered Gates Industrial from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, April 1st. Wall Street Zen lowered Gates Industrial from a “strong-buy” rating to a “buy” rating in a research report on Saturday, April 18th. Finally, Citigroup upped their target price on Gates Industrial from $27.00 to $33.00 and gave the company a “buy” rating in a research report on Friday, February 13th. Six research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $30.36.

Trending Headlines about Gates Industrial

Here are the key news stories impacting Gates Industrial this week:

• Positive Sentiment: Acquisition announced — Gates agreed to buy The Timken Company’s belts business, expanding its power-transmission footprint and management says the deal should improve adjusted EBITDA margins in the Industrial Motion segment. The strategic fit and expected margin accretion are positive for medium-term profit growth. Timken to Sell Belts Business to Gates
• Positive Sentiment: EPS beat — Gates reported $0.35 EPS for Q1, above the ~$0.32 consensus, showing underlying profitability and providing some support despite revenue pressure. That beat helps justify the multiple while investors assess topline trends. Gates Industrial (GTES) Q1 Earnings Surpass Estimates
• Neutral Sentiment: Guidance roughly in line but cautious on revenue — FY‑2026 EPS was guided to $1.52–$1.68 (near Street expectations) while revenue guidance of $3.5–$3.6B sits slightly below consensus. That keeps the story intact but raises questions about near-term top-line momentum. Gates Industrial Reports First-Quarter 2026 Results
• Neutral Sentiment: Conference call / management commentary — The earnings call transcript provides more context on reasons for core revenue weakness and integration plans for the Timken belts assets; investors should watch execution details. Gates Industrial (GTES) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Top-line softness and core revenue decline — Q1 net sales were $851.1M (up 0.4% YoY) but core revenue fell ~2.9% year-over-year and sales missed analyst estimates (~$859.7M). Sluggish organic growth and the revenue miss likely drove the negative stock reaction. Gates Industrial (GTES) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of GTES. JPMorgan Chase & Co. lifted its holdings in Gates Industrial by 98.7% in the fourth quarter. JPMorgan Chase & Co. now owns 8,373,294 shares of the company’s stock valued at $179,775,000 after acquiring an additional 4,158,341 shares during the period. Adage Capital Partners GP L.L.C. acquired a new position in shares of Gates Industrial during the 2nd quarter worth approximately $32,255,000. Nuveen LLC raised its stake in shares of Gates Industrial by 280.0% during the 4th quarter. Nuveen LLC now owns 1,725,274 shares of the company’s stock worth $37,042,000 after buying an additional 1,271,248 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Gates Industrial by 45.9% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,939,492 shares of the company’s stock worth $84,581,000 after buying an additional 1,238,766 shares during the period. Finally, Morgan Stanley raised its stake in shares of Gates Industrial by 31.6% during the 4th quarter. Morgan Stanley now owns 3,042,742 shares of the company’s stock worth $65,328,000 after buying an additional 730,374 shares during the period. 98.50% of the stock is owned by institutional investors and hedge funds.

About Gates Industrial

Gates Industrial Corporation PLC (NYSE: GTES) is a leading global manufacturer of engineered power transmission belts and fluid power products. The company’s portfolio includes synchronous belts, V-belts, hose assemblies, fittings and hydraulic components designed to support a wide range of industrial and automotive applications. Gates Industrial serves sectors such as agriculture, mining, construction, manufacturing, transportation and consumer markets, offering solutions that improve performance, reliability and efficiency in demanding operating environments.

In its power transmission segment, Gates Industrial produces high-strength belts engineered for precise motion control and minimal maintenance.