Carlisle Companies (CSL) opened 2026 with Q1 revenue of US$1,052.1 million and basic EPS of US$3.13, setting the tone for how the rest of the year might shape up for margin focused investors. Over recent quarters the company has seen revenue move from US$1,095.8 million and EPS of US$3.16 in Q1 2025 to a peak of US$1,449.5 million with EPS of US$5.93 in Q2 2025, before stepping down to US$1,052.1 million and EPS of US$3.13 in the latest quarter as attention shifts firmly to how consistently Carlisle can protect its profitability.
See our full analysis for Carlisle Companies.With the headline results on the table, the next step is to line these numbers up against the most common narratives around Carlisle Companies to see which views are supported and which are being challenged by the current margin profile.
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Margins Ease Back From 16.6% To 14.6%
- Over the trailing twelve months, net profit margin sits at 14.6%, compared with 16.6% a year earlier, alongside Q1 2026 net income of US$127.7 million on US$1,052.1 million of revenue.
- Consensus narrative leans on long term margin expansion. However, the move from 16.6% to 14.6% and Q1 earnings of US$3.13 per share prompt a check on how quickly efficiency programs and premium product mix are feeding through to profitability.
- The view that operational programs can add 200+ basis points of margin over time sits next to a trailing margin that is currently around 200 basis points lower than last year.
- Claims that higher margin building envelope products support strong profitability are being tested by recent quarters where EPS moved from US$5.93 in Q2 2025 to just above US$3.10 in Q1 2026.
Five Year EPS Trend Versus Recent Cooling
- Five year earnings growth averaged 13.1% per year, while the most recent twelve month period showed negative earnings growth relative to that multi year trend, with trailing EPS at US$17.38 versus higher levels in prior trailing snapshots.
- Bulls highlight stable reroofing demand and policy support as foundations for continued EPS expansion. At the same time, the recent pullback from trailing EPS above US$18 to US$17.38 and quarterly swings from US$5.93 to US$3.13 show that execution and market conditions can weigh on that longer term growth story.
- The consensus view that rerouting toward higher value insulation and roofing systems can support earnings growth meets a data set where trailing net income eased from US$863.4 million to US$728.6 million over the past few trailing snapshots.
- Expectations of long term growth tied to operational efficiencies sit alongside the past year, where earnings growth did not match the 13.1% annual pace seen over five years.
P/E Of 20.2x And 3.1% Gap To DCF Fair Value
- The shares trade on a P/E of 20.2x versus a peer average of 59.1x and industry average of 22.1x, and the current price of US$360.07 sits about 3.1% below a DCF fair value of roughly US$371.49.
- Bears point to margin pressure, elevated debt, and recent insider selling, yet the combination of a 14.6% trailing net margin and a price only slightly below DCF fair value suggests the cautious view is being weighed against valuation that is broadly in line with the provided fair value range.
- The share price sits below the DCF fair value of US$371.49 and under the analyst price target of US$406.00 while margins are still in the mid teens, which differs from a pure downside story focused only on weaker profitability.
- Concerns about insider selling and leverage are arriving in a context where earnings are still forecast to grow about 7.3% per year and revenue about 4.1% per year, according to the provided figures.
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Carlisle Companies on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
With mixed signals on margins, earnings and valuation, it helps to see the cross currents for yourself instead of relying on headlines. To weigh both the concerns and the potential upside in one place, start with these 3 key rewards and 2 important warning signs.
See What Else Is Out There
Carlisle Companies faces pressure from easing margins, softer recent EPS compared to its five year trend, and a P/E that already sits close to the provided DCF value.
If those margin and earnings headwinds leave you wanting a wider set of ideas, check out the 56 high quality undervalued stocks to find companies where pricing and fundamentals may look more compelling right now.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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