POOL Corporation Q4 Earnings Miss Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 19 2026
0mins
Should l Buy POOL?
Source: seekingalpha
Pool Corporation's stock fell 12.77% as it hit a 52-week low amid disappointing earnings results.
The company reported a Q4 GAAP EPS of $0.85, missing expectations by $0.12, which indicates pressure on profitability that could affect investor confidence. Additionally, revenue declined slightly by 0.5% year-over-year to $982.2 million, falling short of expectations, reflecting weak market demand. Despite a cautious outlook for 2026, with anticipated earnings between $10.85 and $11.15 per diluted share, concerns about short-term performance may impact the stock price further.
This disappointing performance highlights the challenges Pool Corporation faces in a fluctuating market, and investors may need to reassess their expectations for the company's growth trajectory moving forward.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy POOL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on POOL
Wall Street analysts forecast POOL stock price to rise
10 Analyst Rating
3 Buy
6 Hold
1 Sell
Hold
Current: 200.490
Low
240.00
Averages
304.29
High
360.00
Current: 200.490
Low
240.00
Averages
304.29
High
360.00
About POOL
Pool Corporation is a wholesale distributor of swimming pool supplies, equipment, and related leisure products. The Company also distributes irrigation and landscape products in the United States. The Company operates approximately 448 sales centers in North America, Europe, and Australia through its five distribution networks: SCP Distributors (SCP), Superior Pool Products (Superior), Horizon Distributors (Horizon), National Pool Tile (NPT), and Sun Wholesale Supply (Sun Wholesale). The Company distributes swimming pool supplies, equipment, and related leisure products domestically through its SCP and Superior sales center networks through SCP network. Its Horizon sales centers offer organic fertilizers, organic pesticides, and irrigation and drainage products that reduce water usage and soil erosion. Sun Wholesale distributes swimming pool supplies, equipment, and related leisure products, primarily servicing independently owned and operated Pinch A Penny, Inc. franchise locations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Moody's and Pool Corp Stock Pullbacks
- Moody's Strong Financial Performance: Despite a 16% stock price drop, Moody's reported a 13% year-over-year revenue increase in Q4 2025, reaching $1.89 billion, indicating robust demand and execution capabilities, particularly with a 17% revenue growth in its Investors Service segment.
- Continued Dividend Growth: Moody's recently raised its quarterly dividend by 10% to $1.03 per share, marking the 17th consecutive year of increases, and although the current yield is about 0.9%, its conservative 29% payout ratio ensures potential for future growth.
- Pool Corp Facing Challenges: Pool Corp is navigating a tough macroeconomic environment, with Q4 2025 revenue declining approximately 1% year-over-year to $982.2 million, and earnings per share falling 13%, reflecting market pressures.
- Stable Cash Flow Foundation: Despite cyclical challenges, Pool Corp's non-discretionary maintenance product sales remained steady, and with a dividend yield of about 2.4%, the company continues to prioritize returning capital to shareholders, extending its 15-year streak of dividend increases.
See More
Moody's and Pool Corp Earnings Analysis
- Moody's Financial Performance: Despite a 16% stock price drop, Moody's reported a 13% year-over-year revenue increase in Q4 2025 to $1.89 billion, with non-GAAP EPS rising from $2.62 to $3.64, indicating strong business fundamentals and market demand.
- Stable Dividend Growth: Moody's recently raised its quarterly dividend by 10% to $1.03 per share, marking the 17th consecutive year of increases, with a conservative payout ratio of 29% ensuring ample capital for future reinvestment.
- Pool Corp Challenges: Facing high interest rates and cautious consumer spending, Pool Corp's Q4 2025 revenue declined about 1% year-over-year to $982.2 million; however, steady sales of non-discretionary maintenance products provide a cash flow floor.
- Dividend Security: Pool Corp maintains a payout ratio of approximately 45% and raised its quarterly dividend by 4% to $1.25 per share last spring, extending its 15-year streak of dividend increases, with a current yield of about 2.4%, positioning it for earnings growth as the economy recovers.
See More
Strong Cash Flow but Caution Required in Investments
- Wix Performance Warning: Wix boasts a free cash flow margin of 30.4%, yet its average billings growth of 13.1% over the past year indicates a need for adjustments in product and market strategy, compounded by a 5.6 percentage point decline in operating margin that could impact future profitability.
- Pool's Lackluster Growth: With a free cash flow margin of 5.9%, Pool's annual revenue growth of only 6.1% over the past five years suggests it is losing ground to competitors; although a 1.6 percentage point increase in free cash flow margin is expected next year, declining returns on capital reveal ineffective investment outcomes.
- Littelfuse's Earnings Decline: Littelfuse has a free cash flow margin of 15.3%, but flat sales over the past two years and a 4.7% annual drop in earnings per share could pressure stock prices in the long run, indicating poor efficacy in management's investment decisions.
- Market Selectivity Intensifies: In a rapidly changing market landscape, AI technology is swiftly reshaping industries, prompting investors to focus on the divergence between quality stocks and overvalued ones, while seeking potential investment opportunities.
See More
Steadfast Sells Entire Stake in Pool Corporation
- Share Sale Details: Steadfast Capital Management LP disclosed in a recent SEC filing that it sold 504,418 shares of Pool Corporation, with an estimated transaction value of $156.40 million, indicating a significant loss of confidence in the stock.
- Asset Management Shift: This sale resulted in a $156.40 million decline in the fund's quarter-end position value, reducing its stake in Pool Corporation from 2.7% to zero, highlighting a major shift in asset allocation strategy.
- Market Performance Analysis: As of March 4, 2026, Pool Corporation shares were priced at $220.31, down 36% year-over-year, underperforming the S&P 500 by 53 percentage points, reflecting a lack of market confidence in the company.
- Investor Strategy Reflection: While Steadfast opted to sell during Pool's cyclical downturn, analysts believe the company still possesses long-term growth potential due to strong demand in maintenance and renovation markets, making it a candidate for long-term holding.
See More
Steadfast Capital Fully Exits Pool Corporation Position
- Complete Exit: On February 17, 2026, Steadfast Capital Management reported to the SEC that it sold its entire holding in Pool Corporation, totaling 504,418 shares, with an estimated transaction value of approximately $156.4 million, resulting in a corresponding decrease in Pool's market value at quarter-end, highlighting its unfavorable market performance.
- Asset Allocation Shift: This transaction reduced Steadfast's Pool stake from 2.7% of its AUM to zero, indicating a loss of confidence in Pool's future performance and reflecting a strategic reallocation towards other investments, potentially to mitigate market risks.
- Poor Market Performance: As of March 4, 2026, Pool's share price stood at $220.31, down 36% year-over-year, significantly underperforming the S&P 500 by 53 percentage points, suggesting challenges to the company's competitiveness in the current economic environment, necessitating cautious evaluation of its future growth potential by investors.
- Investor Sentiment: Despite Steadfast's decision to exit, analysts believe Pool maintains a dominant position in its niche, with 86% of revenue derived from non-discretionary spending, indicating a relatively stable business model, making long-term holding attractive, especially given the current depressed stock price.
See More
Steadfast Capital Exits Pool Corporation Position with $156 Million Sale
- Position Liquidation: On February 17, 2026, Steadfast Capital Management LP reported the complete sale of its Pool Corporation holdings, reducing its stake by 504,418 shares, with an estimated transaction value of approximately $156.40 million, indicating a loss of confidence in the stock.
- AUM Impact: This sale reduced Pool Corporation's representation in Steadfast's assets under management from 2.7% to zero, reflecting investor concerns about the company's future performance, which could negatively impact market sentiment towards the stock.
- Poor Stock Performance: As of March 4, 2026, Pool Corporation shares were priced at $220.31, down 36% year-over-year and underperforming the S&P 500 by 53 percentage points, highlighting a decline in its competitive position in the market.
- Investor Strategy Shift: Despite Steadfast's exit, analysts note that Pool's 2.3% dividend yield and the fact that 86% of its revenue comes from non-discretionary spending suggest that the stock remains attractive for long-term holders, potentially drawing in other investors at this discounted price.
See More
Analysis of Moody's and Pool Corp Stock Pullbacks
- Moody's Strong Financial Performance: Despite a 16% stock price drop, Moody's reported a 13% year-over-year revenue increase in Q4 2025, reaching $1.89 billion, indicating robust demand and execution capabilities, particularly with a 17% revenue growth in its Investors Service segment.
- Continued Dividend Growth: Moody's recently raised its quarterly dividend by 10% to $1.03 per share, marking the 17th consecutive year of increases, and although the current yield is about 0.9%, its conservative 29% payout ratio ensures potential for future growth.
- Pool Corp Facing Challenges: Pool Corp is navigating a tough macroeconomic environment, with Q4 2025 revenue declining approximately 1% year-over-year to $982.2 million, and earnings per share falling 13%, reflecting market pressures.
- Stable Cash Flow Foundation: Despite cyclical challenges, Pool Corp's non-discretionary maintenance product sales remained steady, and with a dividend yield of about 2.4%, the company continues to prioritize returning capital to shareholders, extending its 15-year streak of dividend increases.
See More
Moody's and Pool Corp Earnings Analysis
- Moody's Financial Performance: Despite a 16% stock price drop, Moody's reported a 13% year-over-year revenue increase in Q4 2025 to $1.89 billion, with non-GAAP EPS rising from $2.62 to $3.64, indicating strong business fundamentals and market demand.
- Stable Dividend Growth: Moody's recently raised its quarterly dividend by 10% to $1.03 per share, marking the 17th consecutive year of increases, with a conservative payout ratio of 29% ensuring ample capital for future reinvestment.
- Pool Corp Challenges: Facing high interest rates and cautious consumer spending, Pool Corp's Q4 2025 revenue declined about 1% year-over-year to $982.2 million; however, steady sales of non-discretionary maintenance products provide a cash flow floor.
- Dividend Security: Pool Corp maintains a payout ratio of approximately 45% and raised its quarterly dividend by 4% to $1.25 per share last spring, extending its 15-year streak of dividend increases, with a current yield of about 2.4%, positioning it for earnings growth as the economy recovers.
See More
Strong Cash Flow but Caution Required in Investments
- Wix Performance Warning: Wix boasts a free cash flow margin of 30.4%, yet its average billings growth of 13.1% over the past year indicates a need for adjustments in product and market strategy, compounded by a 5.6 percentage point decline in operating margin that could impact future profitability.
- Pool's Lackluster Growth: With a free cash flow margin of 5.9%, Pool's annual revenue growth of only 6.1% over the past five years suggests it is losing ground to competitors; although a 1.6 percentage point increase in free cash flow margin is expected next year, declining returns on capital reveal ineffective investment outcomes.
- Littelfuse's Earnings Decline: Littelfuse has a free cash flow margin of 15.3%, but flat sales over the past two years and a 4.7% annual drop in earnings per share could pressure stock prices in the long run, indicating poor efficacy in management's investment decisions.
- Market Selectivity Intensifies: In a rapidly changing market landscape, AI technology is swiftly reshaping industries, prompting investors to focus on the divergence between quality stocks and overvalued ones, while seeking potential investment opportunities.
See More
Steadfast Sells Entire Stake in Pool Corporation
- Share Sale Details: Steadfast Capital Management LP disclosed in a recent SEC filing that it sold 504,418 shares of Pool Corporation, with an estimated transaction value of $156.40 million, indicating a significant loss of confidence in the stock.
- Asset Management Shift: This sale resulted in a $156.40 million decline in the fund's quarter-end position value, reducing its stake in Pool Corporation from 2.7% to zero, highlighting a major shift in asset allocation strategy.
- Market Performance Analysis: As of March 4, 2026, Pool Corporation shares were priced at $220.31, down 36% year-over-year, underperforming the S&P 500 by 53 percentage points, reflecting a lack of market confidence in the company.
- Investor Strategy Reflection: While Steadfast opted to sell during Pool's cyclical downturn, analysts believe the company still possesses long-term growth potential due to strong demand in maintenance and renovation markets, making it a candidate for long-term holding.
See More
Steadfast Capital Fully Exits Pool Corporation Position
- Complete Exit: On February 17, 2026, Steadfast Capital Management reported to the SEC that it sold its entire holding in Pool Corporation, totaling 504,418 shares, with an estimated transaction value of approximately $156.4 million, resulting in a corresponding decrease in Pool's market value at quarter-end, highlighting its unfavorable market performance.
- Asset Allocation Shift: This transaction reduced Steadfast's Pool stake from 2.7% of its AUM to zero, indicating a loss of confidence in Pool's future performance and reflecting a strategic reallocation towards other investments, potentially to mitigate market risks.
- Poor Market Performance: As of March 4, 2026, Pool's share price stood at $220.31, down 36% year-over-year, significantly underperforming the S&P 500 by 53 percentage points, suggesting challenges to the company's competitiveness in the current economic environment, necessitating cautious evaluation of its future growth potential by investors.
- Investor Sentiment: Despite Steadfast's decision to exit, analysts believe Pool maintains a dominant position in its niche, with 86% of revenue derived from non-discretionary spending, indicating a relatively stable business model, making long-term holding attractive, especially given the current depressed stock price.
See More
Steadfast Capital Exits Pool Corporation Position with $156 Million Sale
- Position Liquidation: On February 17, 2026, Steadfast Capital Management LP reported the complete sale of its Pool Corporation holdings, reducing its stake by 504,418 shares, with an estimated transaction value of approximately $156.40 million, indicating a loss of confidence in the stock.
- AUM Impact: This sale reduced Pool Corporation's representation in Steadfast's assets under management from 2.7% to zero, reflecting investor concerns about the company's future performance, which could negatively impact market sentiment towards the stock.
- Poor Stock Performance: As of March 4, 2026, Pool Corporation shares were priced at $220.31, down 36% year-over-year and underperforming the S&P 500 by 53 percentage points, highlighting a decline in its competitive position in the market.
- Investor Strategy Shift: Despite Steadfast's exit, analysts note that Pool's 2.3% dividend yield and the fact that 86% of its revenue comes from non-discretionary spending suggest that the stock remains attractive for long-term holders, potentially drawing in other investors at this discounted price.
See More
