Key Takeaways
- Hubbell shares fell 6% today, even though its third-quarter adjusted EPS of $5.91 and revenue of $1.87 billion beat Wall Street’s estimates.
- Hubbell raised its 2026 adjusted EPS guidance to $20.40 to $20.60, and the midpoint matches the $20.51 analysts already expected.
- Electrical Solutions grew 22% organically on data center demand, while Utility Solutions grew 5% and Grid Automation sales fell about 4%.
- Analysts expect earnings to grow about 12% in 2027, so the selloff looks like an overreaction to an outlook that matched forecasts.
Hubbell (HUBB) beat Wall Street on both earnings and revenue this morning and raised its full-year outlook. The stock still fell 6%.
Hubbell’s Raise Only Matched the Street
Third-quarter adjusted EPS rose 14% to $5.91, ahead of the $5.75 analysts expected, on revenue of $1.87 billion. Sales grew 25%, with acquisitions adding 13 points of that, and the adjusted operating margin widened 160 basis points to 25.5%.
Hubbell also lifted its 2026 adjusted EPS guidance to $20.40 to $20.60, up from $20.25 to $20.55. CEO Gerben Bakker said the raise was “primarily driven by stronger anticipated Electrical Solutions growth.”
Here’s the catch. Hubbell beat the quarter by $0.16 a share but raised its full-year midpoint by just $0.10. The new $20.50 midpoint lands right on the consensus:
Data Centers Up, Meters Down
Electrical Solutions carried the quarter, with organic sales up 22%. On the third-quarter call, Bakker said data center sales grew more than 80% organically.
Utility Solutions, the bigger of Hubbell’s two segments, grew just 5% organically. Grid Infrastructure rose about 13%, but Grid Automation fell about 4%, and Bakker pointed to “a temporary component availability headwind” in meters.
This year’s acquisitions also came with debt. Net debt climbed to $4.66 billion at the end of September, from $1.73 billion at the end of 2025, and quarterly interest expense jumped to $58 million from $14 million. That helps explain why GAAP EPS grew only 4%, to $4.94.
TIKR Tracks 15 Analysts on Hubbell. How Many Say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Hubbell, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Hubbell’s Analyst Ratings
Hubbell Stock Is Cheaper Than Usual
Hubbell went into the report at 21x forward earnings, already below its five-year average of 22x and well off April’s peak of 28x:
After today’s drop, it’s closer to 20x.
That’s a fair price for a company analysts expect to grow earnings about 12% in 2027, to $23.05 a share, with data center sales still growing this fast. The quarter beat and the outlook matched what the Street already expected, so I’d treat today’s drop as a chance to buy.
That call breaks if Utility growth stays stuck around 5%, or if the meters problem outlasts “temporary.” Then the multiple has room to keep falling. Hubbell’s formal 2027 guidance, likely with fourth-quarter results early next year, is the next test.
So what is Hubbell stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
