Cabot (NYSE:CBT) Trading Up 8.2% Following Better-Than-Expected Earnings

Cabot Corporation (NYSE:CBT) rose 8.2% on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $77.50 and last traded at $77.1020. Approximately 40,603 shares changed hands during trading, a decline of 91% from the average daily volume of 450,072 shares. The stock had previously closed at $71.29.

The specialty chemicals company reported $1.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.40 by $0.13. Cabot had a net margin of 8.62% and a return on equity of 23.06%. The company had revenue of $849.00 million during the quarter, compared to analyst estimates of $889.11 million. During the same quarter in the previous year, the business earned $1.76 EPS. The firm’s revenue was down 11.1% on a year-over-year basis. Cabot has set its FY 2026 guidance at 6.000-6.500 EPS.

Cabot Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 27th will be issued a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Friday, February 27th. Cabot’s dividend payout ratio is 29.95%.

More Cabot News

Here are the key news stories impacting Cabot this week:

• Positive Sentiment: Performance Chemicals / Battery Materials showing momentum — management highlighted strong Battery Materials demand and product‑mix improvements that lifted Performance Chemicals EBIT; Cabot also announced a multi‑year supply agreement supporting EV/battery growth expectations. Cabot Corporation Reports First Quarter Fiscal Year 2026 Results
• Positive Sentiment: EPS and cash return — adjusted EPS beat consensus and the company generated $126M of operating cash flow in the quarter, returning $76M to shareholders via dividends and buybacks (supports shareholder returns and near‑term valuation support). Cabot (CBT) Q1 Earnings Surpass Estimates
• Neutral Sentiment: Dividend maintained — the company announced a quarterly dividend of $0.45 per share (supports income investors but was expected).
• Negative Sentiment: Revenue and volumes weakness — consolidated sales declined ~11% Y/Y to $849M and missed consensus estimates, driven by lower Reinforcement Materials volumes (Americas and Asia Pacific). Cabot Corporation (CBT) Stock Falls on Q1 2026 Earnings
• Negative Sentiment: Reinforcement Materials pressure — segment EBIT dropped ~22% Y/Y due to reduced tire customer production and inventory management, creating near‑term headwinds to overall earnings. Cabot Corporation Reports First Quarter Fiscal Year 2026 Results
• Negative Sentiment: Narrowed FY‑2026 guidance below consensus — Cabot tightened its full‑year adjusted EPS to $6.00–$6.50 (management: range reflects tire customer negotiations), which is slightly lower than the Street consensus and adds uncertainty to near‑term estimates. Cabot narrows 2026 EPS guidance to $6–$6.50 as battery materials surge 39%

Analyst Upgrades and Downgrades

CBT has been the subject of several research analyst reports. Mizuho set a $75.00 price objective on Cabot in a research report on Wednesday. Weiss Ratings reiterated a “hold (c-)” rating on shares of Cabot in a report on Monday, December 29th. Jefferies Financial Group restated a “buy” rating and set a $85.00 price objective on shares of Cabot in a report on Wednesday. UBS Group boosted their price objective on shares of Cabot from $65.00 to $74.00 and gave the company a “neutral” rating in a research report on Monday, January 12th. Finally, Zacks Research upgraded Cabot from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 27th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $72.00.

Hedge Funds Weigh In On Cabot

A number of large investors have recently modified their holdings of CBT. Farther Finance Advisors LLC grew its holdings in Cabot by 9.6% in the fourth quarter. Farther Finance Advisors LLC now owns 1,873 shares of the specialty chemicals company’s stock worth $124,000 after purchasing an additional 164 shares during the period. Gabelli Funds LLC boosted its position in shares of Cabot by 1.3% during the 3rd quarter. Gabelli Funds LLC now owns 13,570 shares of the specialty chemicals company’s stock worth $1,032,000 after purchasing an additional 180 shares in the last quarter. Franklin Resources Inc. grew its stake in shares of Cabot by 1.7% in the 2nd quarter. Franklin Resources Inc. now owns 10,551 shares of the specialty chemicals company’s stock valued at $791,000 after buying an additional 181 shares during the period. Parkside Financial Bank & Trust grew its stake in shares of Cabot by 95.5% in the 2nd quarter. Parkside Financial Bank & Trust now owns 387 shares of the specialty chemicals company’s stock valued at $29,000 after buying an additional 189 shares during the period. Finally, First Citizens Bank & Trust Co. increased its position in Cabot by 1.4% in the 3rd quarter. First Citizens Bank & Trust Co. now owns 14,558 shares of the specialty chemicals company’s stock valued at $1,107,000 after buying an additional 206 shares in the last quarter. 93.18% of the stock is currently owned by institutional investors and hedge funds.

Cabot Trading Up 10.5%

The business has a 50 day moving average of $68.79 and a two-hundred day moving average of $71.66. The firm has a market capitalization of $4.17 billion, a price-to-earnings ratio of 13.80, a P/E/G ratio of 3.73 and a beta of 0.88. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.08 and a current ratio of 1.61.

Cabot Company Profile

Cabot Corporation is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. Founded in 1882 by Godfrey Lowell Cabot, the company has grown into a diversified manufacturer with operations across North America, Europe, Asia and Latin America. Cabot serves a wide range of end markets, including automotive, industrial, energy, and consumer products, supplying essential ingredients that enhance performance, durability and functionality.

The company operates two primary segments: Reinforcement Materials and Performance Materials.