Air Products and Chemicals, Inc.

(New York Stock Exchange)
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Slightly Bearish -20

RBC cuts Air Products and Chemicals stock target to USD 346.00

Analyst downgrade Earnings report AI-generated analysis

πŸ“‰ RBC Capital cut its price target for Air Products from USD 360.00 to USD 346.00 on October 15, 2026, while keeping an Outperform rating.

πŸ’° Fiscal third-quarter sales reached USD 3.16 billion, representing a 4.6% increase compared to the prior year period ended June 30, 2026.

πŸ“ˆ Adjusted operating income rose 9.3% to USD 810.3 million, driven by an improved gas operation despite heavy capital-allocation consequences.

⚠️ The company recorded a net loss of USD 1.44 billion due to USD 2.91 billion in pretax charges tied to clean-energy project exits.

🎯 Management maintains fiscal 2026 adjusted earnings-per-share guidance between USD 13.39 and USD 13.49 with capital expenditures expected at about USD 3.5 billion.

🏭 Air Products announced a new Malaysia air-separation project on October 7, 2026, designed to produce more than 600 tonnes per day of liquid oxygen, nitrogen, and argon.

πŸ“… The company is scheduled to discuss fiscal fourth-quarter results on November 5, 2026, at 8:00 a.m. ET.

Bullish Signals
  • Air Products reported strong fiscal third-quarter sales growth of 4.6% year-over-year, reaching USD 3.16 billion.
  • Adjusted operating income increased by 9.3% to USD 810.3 million, indicating an improved gas operation.
  • The company maintains a solid fiscal 2026 adjusted earnings-per-share guidance range of USD 13.39 to USD 13.49.
Risk Factors
  • Air Products incurred a net loss of USD 1.44 billion in the third quarter due to USD 2.91 billion in pretax charges from clean-energy project exits.
  • Heavy capital-allocation consequences and large-scale project exits remain central risks impacting the company's financial performance.
Full Analysis
RBC Capital Management reduced its price target for Air Products and Chemicals (APD) from USD 360.00 to USD 346.00 on October 15, 2026, while maintaining an Outperform rating. The stock was trading around EUR 266.85 at the time of the report, reflecting a market capitalization of approximately USD 66.5 billion as of late October 2026. Despite the analyst downgrade, Air Products reported robust fiscal third-quarter fundamentals with sales reaching USD 3.16 billion, a 4.6% year-over-year increase. Adjusted operating income grew by 9.3% to USD 810.3 million, driven by an improved gas operation that offset heavy capital-allocation consequences from exiting clean-energy projects. The company faces significant headwinds from pretax charges of USD 2.91 billion related to these project exits, which resulted in a reported net loss of USD 1.44 billion for the quarter. Management maintains fiscal 2026 adjusted earnings-per-share guidance between USD 13.39 and USD 13.49 with expected capital expenditures around USD 3.5 billion. Air Products is scheduled to present its fiscal fourth-quarter results on November 5, 2026, following a recent announcement of a new Malaysia air-separation project designed to produce over 600 tonnes daily of liquid oxygen, nitrogen, and argon.