What to Expect From Lennox International's Next Quarterly Earnings Report

With a market cap of $12.3 billion, Lennox International Inc. (LII) is a leading provider of energy-efficient building solutions, committed to creating healthier, more comfortable environments for residential and commercial customers. The company offers innovative heating, cooling, indoor air quality, refrigeration, and water heating systems, supported by advanced technology, trusted products, parts, and services that address customers’ needs throughout the product lifecycle.

The Richardson, Texas-based company is expected to release its fiscal Q3 2026 results before the market opens on Wednesday, Oct. 28. Ahead of this event, analysts project LII to report an adjusted EPS of $7.34, a 5.2% growth from $6.98 in the year-ago quarter. It has exceeded Wall Street's bottom-line estimates in three of the last four quarters while missing on another occasion. 

For fiscal 2026, analysts forecast the heating and cooling systems maker to report adjusted EPS of $23.44, up 1.2% from $23.16 in fiscal 2025. Looking forward, adjusted EPS is projected to rise 9.9% year-over-year to $25.75 in fiscal 2027.

LII stock has declined 33.3% over the past 52 weeks, lagging behind the broader S&P 500 Index's ($SPX) nearly 16% return and the State Street Industrial Select Sector SPDR ETF's (XLI) 12.8% gain over the same period. 

Lennox International shares tumbled nearly 21% on Jul. 29, amid weaker-than-expected Q2 2026 revenue of $1.5 billion, missing analysts’ estimate despite adjusted EPS of $7.72 beating the consensus. The decline was exacerbated by the company lowering its full-year EPS guidance to $23 - $24, with a midpoint of $23.50 well below analysts’ estimate, as its Home Comfort Solutions segment faced continued residential market weakness, with revenue falling 7% to $936 million and segment profit declining 12% to $222 million. 

Additionally, Home Comfort Solutions’ margin contracted 130 basis points to 23.7%, while overall operating margin fell 30 basis points to 23%, outweighing stronger Building Climate Solutions revenue growth of 24% to $610 million and improved operating cash flow of $172 million.

Analysts' consensus view on LII stock is cautiously optimistic, with an overall "Moderate Buy" rating. Among 19 analysts covering the stock, six suggest a "Strong Buy," 12 give a "Hold," and one provides a "Moderate Sell" rating. This configuration is slightly less bullish than three months ago, with seven analysts suggesting a "Strong Buy."

The average analyst price target for Lennox is $482.43, indicating a potential upside of 35.3% from the current levels.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.