Why Has PPG Industries (PPG) Increased by 8% Following Its Most Recent Earnings Announcement?

PPG Industries Stock Performance Since Last Earnings

It has been a month since the previous earnings announcement from PPG Industries (PPG). During this period, the company's shares have risen by approximately 8%, outpacing the S&P 500 index.

Investors may be questioning whether this upward momentum will persist as the next earnings report approaches, or if a correction is on the horizon for PPG Industries. Before examining recent reactions from analysts and shareholders, let's review the latest earnings results to better understand the factors influencing the stock.

Fourth Quarter Earnings Overview

For the fourth quarter of 2025, PPG Industries reported a profit from ongoing operations of $302 million, or $1.34 per share, a significant increase from $2 million, or $0.01 per share, in the same period last year.

Excluding special items, adjusted earnings per share came in at $1.51, which is lower than the $1.61 reported a year earlier and below the Zacks Consensus Estimate of $1.57.

Quarterly revenue reached about $3.91 billion, marking a 5% year-over-year increase and surpassing the consensus estimate of $3.74 billion.

Segment Performance

• Global Architectural Coatings: Sales climbed 8% year-over-year to $951 million, exceeding expectations of $882.8 million. The growth was driven by increased pricing and favorable currency exchange, though partially offset by the sale of the Russian architectural coatings business.
• Performance Coatings: This segment saw sales rise 5% to $1.32 billion, beating the estimate of $1.22 billion. Higher prices and positive currency effects contributed to the increase, while lower sales volumes provided some offset. Organic sales grew 3%, led by aerospace, protective, and marine coatings.
• Industrial Coatings: Sales increased by 3% from the previous year to $1.64 billion, topping the estimate of $1.61 billion. Gains were supported by improved volumes and currency translation benefits.

Financial Position

At quarter's end, PPG Industries held approximately $2.16 billion in cash and equivalents, representing a 70% increase year-over-year. Long-term debt stood at $6.6 billion, up 35% compared to the same quarter last year.

Future Guidance

For the full year 2026, PPG Industries anticipates adjusted earnings per share between $7.70 and $8.10. The outlook reflects ongoing challenges in global industrial production, varied demand across regions, and the impact of economic and currency conditions. Organic sales are projected to be flat or show modest growth, with earnings expected to be stronger in the second half of the year.

Recent Estimate Trends

Over the past month, analysts have generally revised their estimates downward for PPG Industries.

VGM Score Analysis

Currently, PPG Industries holds a Growth Score of C and a Momentum Score of D. However, it ranks highly for value, earning an A and placing it among the top 20% for value-focused investors.

The overall VGM Score is C, which may be of interest to those seeking a balanced investment approach.

Stock Outlook

Analyst estimates for PPG Industries have been trending lower, indicating a shift in sentiment. The stock carries a Zacks Rank #3 (Hold), suggesting that performance is expected to be in line with the market over the coming months.

Featured: Zacks Top 10 Stocks for 2026

There is still an opportunity to access Zacks' top 10 stock picks for 2026, curated by Director of Research Sheraz Mian. This portfolio has delivered impressive and consistent returns.

From 2012 through November 2025, the Zacks Top 10 Stocks achieved a cumulative gain of +2,530.8%, far exceeding the S&P 500's +570.3% over the same period.

Sheraz selected these stocks from a universe of 4,400 companies covered by Zacks Rank. You can be among the first to discover these newly released picks with significant growth potential.