Air Products and Chemicals (NYSE:APD) Shares Gap Up After Better-Than-Expected Earnings

Air Products and Chemicals, Inc. (NYSE:APD)’s share price gapped up prior to trading 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.

The basic materials company reported $3.16 EPS for the quarter, beating analysts’ consensus estimates of $3.04 by $0.12. Air Products and Chemicals had a positive return on equity of 15.18% and a negative net margin of 3.28%.The company had revenue of $3.10 billion during the quarter, compared to analysts’ expectations of $3.05 billion. During the same period in the prior year, the business posted $2.86 EPS. Air Products and Chemicals’s revenue was up 5.8% on a year-over-year basis. 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 firm also recently disclosed a quarterly dividend, which will be paid on Monday, May 11th. Investors of record on Wednesday, April 1st will be paid a dividend of $1.81 per share. This represents a $7.24 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Wednesday, April 1st. This is a boost from Air Products and Chemicals’s previous quarterly dividend of $1.79. Air Products and Chemicals’s dividend payout ratio (DPR) is -402.25%.

Air Products and Chemicals News Summary

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

APD has been the subject of several recent analyst reports. JPMorgan Chase & Co. lowered their price target on Air Products and Chemicals from $275.00 to $260.00 and set a “neutral” rating for the company in a report on Friday, November 7th. Wells Fargo & Company reiterated an “equal weight” rating and issued a $250.00 price objective (down from $330.00) on shares of Air Products and Chemicals in a research report on Friday, December 19th. Wall Street Zen downgraded shares of Air Products and Chemicals from a “hold” rating to a “sell” rating in a report on Sunday, December 14th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Air Products and Chemicals in a report on Monday, December 29th. Finally, Evercore ISI dropped their price objective on shares of Air Products and Chemicals from $375.00 to $325.00 and set an “outperform” rating on the stock in a report on Tuesday, November 11th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $288.00.

Hedge Funds Weigh In On Air Products and Chemicals

Hedge funds have recently modified their holdings of the stock. Simplicity Wealth LLC raised its holdings in Air Products and Chemicals by 2.5% during the fourth quarter. Simplicity Wealth LLC now owns 3,868 shares of the basic materials company’s stock worth $956,000 after acquiring an additional 93 shares in the last quarter. Vest Financial LLC grew its stake in Air Products and Chemicals by 5.6% in the fourth quarter. Vest Financial LLC now owns 194,855 shares of the basic materials company’s stock valued at $48,133,000 after purchasing an additional 10,372 shares in the last quarter. Oakworth Capital Inc. increased its position in shares of Air Products and Chemicals by 4.1% during the 4th quarter. Oakworth Capital Inc. now owns 1,771 shares of the basic materials company’s stock worth $437,000 after purchasing an additional 70 shares during the last quarter. Torren Management LLC bought a new stake in shares of Air Products and Chemicals during the 4th quarter worth approximately $38,000. Finally, Mitsubishi UFJ Trust & Banking Corp boosted its holdings in shares of Air Products and Chemicals by 1.5% in the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 98,861 shares of the basic materials company’s stock valued at $24,421,000 after buying an additional 1,439 shares during the last quarter. Institutional investors 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 firm’s 50 day moving average is $254.42 and its two-hundred day moving average is $268.56. The firm has a market capitalization of $60.67 billion, a P/E ratio of -153.12, a PEG ratio of 2.52 and a beta of 0.87.

Air Products and Chemicals Company Profile

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.