Fortune Brands Innovations (NYSE:FBIN) Shares Gap Down on Disappointing Earnings

Fortune Brands Innovations, Inc. (NYSE:FBIN) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $62.30, but opened at $50.51. Fortune Brands Innovations shares last traded at $52.1460, with a volume of 4,015,631 shares traded.

The company reported $0.86 EPS for the quarter, missing the consensus estimate of $1.00 by ($0.14). The firm had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.14 billion. Fortune Brands Innovations had a net margin of 6.70% and a return on equity of 18.63%. Fortune Brands Innovations’s revenue for the quarter was down 2.4% compared to the same quarter last year. During the same quarter last year, the company posted $0.98 earnings per share. Fortune Brands Innovations has set its FY 2026 guidance at 3.350-3.650 EPS.

Fortune Brands Innovations Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 11th. Stockholders of record on Friday, February 20th will be issued a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Friday, February 20th. This is a positive change from Fortune Brands Innovations’s previous quarterly dividend of $0.25. Fortune Brands Innovations’s dividend payout ratio (DPR) is presently 40.49%.

Key Fortune Brands Innovations News

Here are the key news stories impacting Fortune Brands Innovations this week:

• Positive Sentiment: Board approved a larger dividend for shareholders, which supports income-minded investors and offsets some of the earnings disappointment. Read More.
• Neutral Sentiment: Company announced a CEO transition (Amit Banati to become CEO effective May 13, 2026); leadership change could be constructive long term but creates short-term uncertainty. Read More.
• Neutral Sentiment: Management released Q4 results, a slide deck and the earnings call presentation — useful for parsing margin drivers, channel trends and cost initiatives. (These materials provide detail but didn’t prevent the negative market reaction.) Read More.
• Negative Sentiment: Q4 EPS of $0.86 and revenue of $1.08B missed consensus ($1.00 EPS; ~$1.14B revenue); revenue declined year-over-year, signaling near-term demand weakness. Read More.
• Negative Sentiment: FY2026 EPS guidance was set at $3.35–$3.65 versus Street ~4.06, and revenue guidance was trimmed — the guidance gap is the primary driver of the selloff. Read More.
• Negative Sentiment: Analysts reacted: Wolfe Research downgraded FBIN to “peer perform” after the results, and Barclays reaffirmed “equal weight” but cut its price target from $68 to $55 — pressure on sentiment and the stock’s target prices. Read More. | Read More.
• Negative Sentiment: Market reaction was sharp: unusually high volume on the drop, suggesting forced/rapid repositioning and reduced near-term conviction among some holders. Read More.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. Wolfe Research set a $64.00 target price on shares of Fortune Brands Innovations in a research report on Friday. Vertical Research began coverage on Fortune Brands Innovations in a research note on Tuesday, October 21st. They issued a “hold” rating and a $52.00 target price for the company. Evercore restated an “outperform” rating on shares of Fortune Brands Innovations in a research report on Friday, October 31st. Robert W. Baird set a $55.00 price objective on Fortune Brands Innovations in a research report on Friday. Finally, UBS Group reissued a “buy” rating and set a $70.00 price objective on shares of Fortune Brands Innovations in a research note on Friday. Three research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, Fortune Brands Innovations has a consensus rating of “Hold” and an average target price of $60.30.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Qube Research & Technologies Ltd purchased a new stake in shares of Fortune Brands Innovations in the 2nd quarter worth about $87,611,000. Norges Bank purchased a new stake in Fortune Brands Innovations in the fourth quarter worth about $83,796,000. Bank of New York Mellon Corp boosted its position in Fortune Brands Innovations by 147.8% during the 3rd quarter. Bank of New York Mellon Corp now owns 2,691,827 shares of the company’s stock valued at $143,717,000 after acquiring an additional 1,605,453 shares in the last quarter. Balyasny Asset Management L.P. bought a new stake in Fortune Brands Innovations during the 2nd quarter valued at approximately $77,441,000. Finally, First Pacific Advisors LP grew its holdings in shares of Fortune Brands Innovations by 152.2% during the 2nd quarter. First Pacific Advisors LP now owns 1,998,397 shares of the company’s stock worth $102,877,000 after acquiring an additional 1,205,880 shares during the period. 87.60% of the stock is owned by hedge funds and other institutional investors.

Fortune Brands Innovations Price Performance

The stock has a market cap of $6.15 billion, a P/E ratio of 20.72, a price-to-earnings-growth ratio of 4.34 and a beta of 1.41. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.94 and a current ratio of 1.95. The firm has a 50-day moving average price of $55.27 and a 200-day moving average price of $54.16.

Fortune Brands Innovations Company Profile

Fortune Brands Innovations (NYSE: FBIN), formerly known as Fortune Brands Home & Security, is a global leader in water innovations, specializing in the design, manufacturing and marketing of plumbing fixtures, fittings and related products. Headquartered in Deerfield, Illinois, the company leverages two iconic brands—Moen and House of Rohl—to deliver high-quality kitchen and bathroom solutions across residential and commercial markets. With a focus on performance, reliability and aesthetic design, FBIN’s portfolio spans faucets, showerheads, accessories and water filtration systems.

The company’s products are sold through a diversified network of retail partners, wholesale distributors and online channels across North America, Europe, Asia-Pacific and Latin America.