Air Products and Chemicals (NYSE:APD) Shares Gap Up Following Earnings Beat

Air Products and Chemicals, Inc. (NYSE:APD) shares gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $256.02, but opened at $267.35. Air Products and Chemicals shares last traded at $270.2850, with a volume of 109,818 shares changing hands.

The basic materials company reported $3.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.04 by $0.12. Air Products and Chemicals had a negative net margin of 3.28% and a positive return on equity of 15.18%. The company had revenue of $3.10 billion during the quarter, compared to analysts’ expectations of $3.05 billion. During the same period last year, the company posted $2.86 earnings per share. The firm’s quarterly revenue was up 5.8% compared to the same quarter last year. Air Products and Chemicals has set its Q2 2026 guidance at 2.950-3.100 EPS and its FY 2026 guidance at 12.850-13.150 EPS.

Air Products and Chemicals Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, May 11th. Shareholders of record on Wednesday, April 1st will be given a dividend of $1.81 per share. The ex-dividend date is Wednesday, April 1st. This is a positive change from Air Products and Chemicals’s previous quarterly dividend of $1.79. This represents a $7.24 dividend on an annualized basis and a yield of 2.7%. Air Products and Chemicals’s dividend payout ratio (DPR) is presently -402.25%.

Key Headlines Impacting Air Products and Chemicals

Here are the key news stories impacting Air Products and Chemicals this week:

• Positive Sentiment: Q1 results beat expectations — adjusted EPS $3.16 vs. $3.04 expected and revenue $3.10B vs. $3.05B, with margins benefiting from lower costs and pricing. This beat is the primary driver of the rally. APD Q1 Earnings Beat on Lower Costs
• Positive Sentiment: Management maintained FY‑2026 guidance (EPS 12.85–13.15) and set Q2 guidance (2.95–3.10), signaling confidence in the business and limiting downside from the quarter. Air Products Reports Fiscal 2026 First Quarter Results
• Positive Sentiment: Corporate wins and shareholder actions: increased quarterly dividend to $1.81 (44th consecutive annual raise) and new/ongoing contracts including >$140M in NASA liquid‑hydrogen awards and progress on low‑emission ammonia deals — supportive for long‑term revenue visibility. Air Products Reports Fiscal 2026 First Quarter Results
• Neutral Sentiment: Guidance relative to consensus is mixed — the company’s FY and Q2 ranges are essentially maintained but sit near or slightly below some street estimates (e.g., consensus Q2 ~3.03; FY consensus cited ~12.93), which could cap upside until guidance traction is confirmed.
• Neutral Sentiment: Planned capital expenditures remain high (~$4.0B for FY‑2026). That supports growth projects (H2, ammonia, hydrogen infrastructure) but may constrain free cash flow near term. Air Products Reports Fiscal 2026 First Quarter Results
• Negative Sentiment: Relative performance: some coverage noted APD underperformed peers recently, a reminder of potential short‑term volatility if sector momentum fades. Air Products Underperforms Peers

Wall Street Analyst Weigh In

Several research firms have recently issued reports on APD. UBS Group downgraded Air Products and Chemicals from a “buy” rating to a “neutral” rating and cut their price target for the stock from $310.00 to $250.00 in a research note on Thursday, December 11th. Citigroup lifted their target price on shares of Air Products and Chemicals from $245.00 to $272.00 and gave the stock a “neutral” rating in a research report on Wednesday, January 21st. Weiss Ratings upgraded shares of Air Products and Chemicals from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday. Bank of America upgraded Air Products and Chemicals from an “underperform” rating to a “neutral” rating and set a $275.00 price objective for the company in a research report on Thursday, January 8th. Finally, JPMorgan Chase & Co. reduced their target price on Air Products and Chemicals from $275.00 to $260.00 and set a “neutral” rating on the stock in a research note on Friday, November 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, Air Products and Chemicals currently has an average rating of “Moderate Buy” and an average price target of $288.00.

Institutional Investors Weigh In On Air Products and Chemicals

Several hedge funds have recently made changes to their positions in APD. Norges Bank purchased a new position in Air Products and Chemicals during the second quarter worth about $1,020,081,000. Viking Global Investors LP acquired a new position in shares of Air Products and Chemicals during the 2nd quarter valued at about $607,601,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Air Products and Chemicals by 644.6% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,031,306 shares of the basic materials company’s stock worth $281,258,000 after acquiring an additional 892,793 shares during the period. Franklin Resources Inc. boosted its position in shares of Air Products and Chemicals by 21.6% in the third quarter. Franklin Resources Inc. now owns 4,616,305 shares of the basic materials company’s stock worth $1,258,678,000 after acquiring an additional 821,524 shares during the last quarter. Finally, Capital International Investors grew its holdings in Air Products and Chemicals by 7.4% in the third quarter. Capital International Investors now owns 8,870,013 shares of the basic materials company’s stock valued at $2,419,029,000 after purchasing an additional 609,489 shares during the period. Institutional investors and hedge funds own 81.66% of the company’s stock.

Air Products and Chemicals Stock Up 6.5%

The company has a debt-to-equity ratio of 0.98, a current ratio of 1.38 and a quick ratio of 1.20. The stock has a market cap of $60.67 billion, a price-to-earnings ratio of -153.12, a price-to-earnings-growth ratio of 2.52 and a beta of 0.87. The firm’s 50-day moving average is $254.42 and its 200 day moving average is $268.44.

About Air Products and Chemicals

Air Products and Chemicals, Inc is a global supplier of industrial gases and related equipment and services, headquartered in Allentown, Pennsylvania. The company produces and delivers atmospheric gases such as oxygen, nitrogen and argon, as well as specialty and process gases used across a wide range of industrial applications. Air Products designs, builds and operates gas production facilities, merchant distribution networks and on-site gas systems for customers that require reliable, high-purity gases and integrated supply solutions.

The company’s product and service portfolio includes packaged and bulk gas supply, pipeline distribution, on-site generation, gas handling and storage equipment, and engineered systems for gas liquefaction and purification.