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

Fortune Brands Innovations, Inc. (NYSE:FBIN) shares 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 changing hands.

The company reported $0.86 earnings per share for the quarter, missing the consensus estimate of $1.00 by ($0.14). Fortune Brands Innovations had a net margin of 6.70% and a return on equity of 18.63%. The business had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.14 billion. During the same quarter in the prior year, the business earned $0.98 earnings per share. The firm’s revenue was down 2.4% on a year-over-year basis. 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. Shareholders of record on Friday, February 20th will be issued a dividend of $0.26 per share. The ex-dividend date is Friday, February 20th. This represents a $1.04 annualized dividend and a yield of 2.0%. This is a boost from Fortune Brands Innovations’s previous quarterly dividend of $0.25. Fortune Brands Innovations’s dividend payout ratio (DPR) is presently 40.49%.

Key Stories Impacting Fortune Brands Innovations

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 Upgrades and Downgrades

A number of brokerages recently issued reports on FBIN. Zelman & Associates lowered shares of Fortune Brands Innovations from an “outperform” rating to a “neutral” rating in a research note on Friday. Vertical Research initiated coverage on shares of Fortune Brands Innovations in a research note on Tuesday, October 21st. They set a “hold” rating and a $52.00 price objective on the stock. Royal Bank Of Canada reissued an “outperform” rating and set a $61.00 price objective on shares of Fortune Brands Innovations in a report on Friday. UBS Group restated a “buy” rating and issued a $70.00 target price on shares of Fortune Brands Innovations in a research note on Friday. Finally, Barclays reaffirmed an “equal weight” rating and set a $55.00 price target (down previously from $68.00) on shares of Fortune Brands Innovations in a research report on Friday. Three analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $60.30.

Hedge Funds Weigh In On Fortune Brands Innovations

Institutional investors have recently made changes to their positions in the stock. Kestra Advisory Services LLC bought a new stake in shares of Fortune Brands Innovations in the 4th quarter worth approximately $184,000. Rafferty Asset Management LLC increased its position in Fortune Brands Innovations by 16.6% in the fourth quarter. Rafferty Asset Management LLC now owns 113,156 shares of the company’s stock worth $5,660,000 after buying an additional 16,093 shares during the period. North Growth Management Ltd. lifted its stake in Fortune Brands Innovations by 0.9% in the fourth quarter. North Growth Management Ltd. now owns 114,000 shares of the company’s stock valued at $5,699,000 after buying an additional 1,000 shares during the last quarter. Alyeska Investment Group L.P. lifted its stake in Fortune Brands Innovations by 36.0% in the fourth quarter. Alyeska Investment Group L.P. now owns 625,739 shares of the company’s stock valued at $31,299,000 after buying an additional 165,572 shares during the last quarter. Finally, Ingalls & Snyder LLC boosted its holdings in shares of Fortune Brands Innovations by 17.8% during the fourth quarter. Ingalls & Snyder LLC now owns 205,038 shares of the company’s stock valued at $10,256,000 after acquiring an additional 31,054 shares during the period. 87.60% of the stock is owned by institutional investors.

Fortune Brands Innovations Stock Down 17.9%

The company has a quick ratio of 0.94, a current ratio of 1.95 and a debt-to-equity ratio of 1.12. The firm’s 50-day moving average price is $55.27 and its 200 day moving average price is $54.17. The firm has a market cap of $6.15 billion, a P/E ratio of 20.72, a price-to-earnings-growth ratio of 5.26 and a beta of 1.41.

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.