Key Stats
- Current Price: ~$29 (as of May 11, 2026)
- Q1 2026 Revenue: $331M, up 11% YoY as reported; up 7% currency-neutral
- Q1 2026 Adjusted EPS: $0.41, up 64% YoY
- Q2 2026 Revenue Guidance: $385M–$395M
- Full Year 2026 Revenue Guidance: $1.45B–$1.48B
- Full Year 2026 Adjusted Gross Margin Guidance: ~39%
- TIKR Model Price Target: $32
- Implied Upside: ~12% total return over 5.6 years
Interface Stock Beats Q1 Estimates as Operating Income Surges 29%
Interface stock (TILE) delivered a standout first quarter, with adjusted EPS of $0.41 coming in 64% above the prior year’s $0.25 on revenue of $331M, up 11% as reported and 7% on a currency-neutral basis.
Corporate office was the sharpest driver, with global billings up 16% in the quarter, accelerating sharply from a flat print in Q4 2025.
Healthcare billings rose 11%, with nora rubber billings specifically up 16%, according to CEO Laurel Hurd on the Q1 2026 earnings call.
Education billings grew 1%, which management described as a timing issue ahead of the education buying season in Q2 and early Q3.
Currency-neutral orders grew 8% YoY in Q1, while backlog ended the quarter up 18% year-to-date, providing visible support for the full-year outlook.
Adjusted SG&A came in at $94M, but as a percentage of net sales it improved 78 basis points to 28%, reflecting the company’s ongoing focus on SG&A leverage.
Adjusted operating income reached $32.7M, up 29% from $25.5M in the prior year period, as pricing, product mix, and manufacturing efficiencies all contributed to the margin lift.
Adjusted EBITDA was $46.8M compared to $37M in Q1 2025, while adjusted net income rose to $23.9M from $14.6M.
On capital allocation, Interface repurchased $12M of common stock in the quarter and generated $13.5M in operating cash flow against $10.3M in capital expenditures.
Interface raised full-year revenue guidance to $1.45B–$1.48B and set Q2 revenue guidance at $385M–$395M, with Q2 adjusted gross margin guided to approximately 40%.
The company also noted that the Middle East, representing approximately 1% of net sales, is expected to drive a low single-digit increase in input costs, with approximately 15%–20% of COGS subject to tariff exposure, according to CFO Bruce Hausmann on the Q1 2026 earnings call.
Management stated that incremental pricing and productivity actions are in place to offset the tariff impact, and the effect is already reflected in guidance.
noravant, a rubber flooring innovation launched in late February targeting the healthcare segment, began building customer momentum in Q1, with meaningful revenue contribution expected starting in Q4 2026.
What the Income Statement Shows for Interface Stock
Interface stock is posting a margin expansion story, with gross margin, operating margin, and operating income all trending higher over the past three quarters.
Gross margin came in at 38% in Q1 2026, up from 37% in Q1 2025, continuing a recovery from the 37% trough recorded in Q1 2025 after the prior-year softness.
The multi-quarter trend shows gross margin moving from 35% in Q2 2024, to 37% in Q3 2024, to 37% in Q4 2024, before lifting to 39% in Q2 2025, holding at 39% in Q3 2025, stepping back to 39% in Q4 2025, and settling at 38% in Q1 2026.
Operating margin reached 10% in Q1 2026, up from 8% in Q1 2025, reversing a compression trough that bottomed at 9% in Q4 2024.
Operating income came in at $32.7M for Q1 2026, up 35% from the $24M (using the 0.02 figure from Q1 2025 in the screenshot) prior-year period, according to the income statement.
Management attributed the gross margin improvement to favorable pricing and product mix plus manufacturing efficiencies, according to CFO Hausmann on the Q1 2026 earnings call.
What Does the Valuation Model Say?
The TIKR model prices Interface stock at $32, implying a total return of approximately 12% over 5 and a half years from the current price of approximately $29, or roughly 3% annualized.
The mid-case model assumes a revenue CAGR of 4% through 2035 and a net income margin of near 8%, reaching a mid-case stock price of $36 by December 2034, with an IRR of approximately 3%.
The Q1 beat, with EPS up 64% and operating income up 29%, strengthens confidence in the near-term execution story and reduces the downside risk in the low scenario, which models a revenue CAGR of 4% and a net income margin of around 7%.
Interface stock is priced for modest but steady compounding: the model does not require an inflection, but the upside case (~5% revenue CAGR, 8% net income margin) implies a total return of 50% by 2035, suggesting that execution above base-case assumptions is where the real value unlock lives.
The debate for Interface stock is whether execution on One Interface can push margins and revenue growth beyond what the base model assumes, or whether macro and cost pressures cap the upside.
Low Case
The tariff exposure of approximately 15%–20% of COGS, combined with Middle East-driven input cost pressure, erodes the gross margin gains that drove Q1 outperformance, leaving the 4.0% revenue CAGR assumption in the low scenario with little margin buffer to absorb further disruption.
Education billings grew only 1% in Q1 2026, and a disappointing result through the Q2 and early Q3 buying season would pressure the back-half revenue profile and push full-year results toward the low end of the $1.45B–$1.48B guidance range.
noravant contributes no revenue until Q4 2026, meaning the new product pipeline provides no cushion for the first three quarters if core segment growth slows.
Mid Case
Corporate office billings up 16% in Q1 2026, accelerating from flat in Q4 2025, support the 4.4% revenue CAGR assumption, with return-to-office momentum and Class A renovation activity providing a visible demand tailwind through the year.
Backlog entered Q2 up 18% year-to-date, broad-based across segments and geographies, giving management visibility to sustain the mid-case net income margin assumption of 7.7%.
Management raised full-year guidance to $1.45B–$1.48B and guided Q2 gross margin to approximately 40%, consistent with the mid-case trajectory and suggesting the Q1 result was not a one-quarter anomaly.
High Case
Adjusted operating income of $32.7M in Q1 2026 already exceeded the prior year by 29%, and if manufacturing efficiencies and SG&A leverage of 78 basis points continue compounding, the high-case net income margin of 8% becomes reachable without requiring a revenue acceleration.
noravant’s (a rubber flooring innovation combining the technical durability of nora with a warmer wood-grain aesthetic designed for patient rooms) entry into healthcare, where nora rubber billings were already up 16% in Q1 2026, could meaningfully expand the addressable market and push revenue growth toward the high-case 4.8% CAGR if customer adoption accelerates ahead of the Q4 2026 timeline.
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