Wabtec Corporation (NYSE:WAB) shares declined 2.94% in pre-market trading on Wednesday after the rail equipment and technology company reported third-quarter 2026 revenue below analysts’ expectations, despite exceeding earnings forecasts and raising its full-year adjusted earnings guidance.
The company posted adjusted earnings per share of $2.83, exceeding the market consensus of $2.73 by $0.10.
Quarterly revenue reached $3.12 billion, below analysts’ estimates of $3.2 billion. However, the figure represented an 8.1% increase from the $2.89 billion reported in the corresponding period of 2025.
Following the results, Wabtec raised and narrowed its full-year adjusted earnings guidance to a range of $10.85 to $11.05 per share.
The midpoint of the revised forecast, at $10.95, stands above the analyst consensus estimate of $10.87 per share.
The company also maintained its 2026 revenue guidance of between $12.3 billion and $12.6 billion. The midpoint of $12.45 billion remains below the market consensus of $12.55 billion.
The difference between the company’s revenue outlook and analysts’ expectations was among the factors investors assessed following the earnings announcement.
Rafael Santana, Wabtec’s Chairman and Chief Executive Officer, commented on the quarterly performance.
“Wabtec delivered another strong quarter, evidenced by sales growth, margin expansion and a 22% increase in adjusted EPS,” Santana said.
Within its operating divisions, Wabtec’s Freight segment generated revenue of $2.24 billion, representing a 6.9% increase compared with the third quarter of 2025.
The Transit segment reported revenue of $883 million, up 11.3% year on year.
Both divisions contributed to the company’s overall revenue growth, with the Transit business recording the higher percentage increase during the period.
Wabtec also reported an improvement in profitability, with its adjusted operating margin increasing to 22.9% from 21.0% in the prior-year quarter.
The expansion of 190 basis points accompanied the company’s reported increase in adjusted earnings per share.
Cash generated from operating activities totalled $455 million during the third quarter, compared with $367 million in the same period last year.
The company continued returning capital to shareholders, repurchasing $305 million of its shares during the quarter and distributing a further $52 million through dividend payments.
In total, Wabtec returned $357 million to shareholders through share buybacks and dividends during the reporting period.
The quarterly results showed growth in both Freight and Transit revenue, alongside an improvement in operating margins and cash generation.
However, the company’s revenue fell short of market forecasts, while its maintained full-year sales guidance remained below analysts’ consensus expectations.
Investors will continue to assess Wabtec’s performance during the final quarter of 2026, particularly whether revenue growth across its two operating divisions and improvements in operating profitability support the company’s updated earnings outlook.