AI-extracted from the 10-Q filed 2026-10-27 — Q1 FY2027 (quarter ended September 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Net sales rose 7.6% to $1,291.2M and diluted EPS rose 12.9% to $2.97, with Engineered Solutions sales up 14.1% on higher volumes.
Biggest Revenue Drivers
Service Center$815.3M+4.2% YoY
Favorable end-market demand and internal sales initiatives across the United States of approximately $35.0M, partially offset by softer international demand.
Engineered Solutions$475.8M+14.1% YoY
Higher volumes of approximately $46.0M reflecting stronger demand across fluid power and automation operations, and to a lesser extent flow control.
Biggest Revenue Drivers
Total revenue: $1,291.2M+7.6% YoY
Service Center$815.3M+4.2% YoY
Favorable end-market demand and internal sales initiatives across the United States of approximately $35.0M, partially offset by softer international demand.
Within Service Center
United States$1,143.4M+8.2% YoY
Higher demand in the Engineered Solutions segment, and to a lesser extent the Service Center segment; includes $3.5M from acquisitions.
Engineered Solutions$475.8M+14.1% YoY
Higher volumes of approximately $46.0M reflecting stronger demand across fluid power and automation operations, and to a lesser extent flow control.
Largest Expense Items
Selling, distribution and administrative expense$248.6M+7.0% YoY
Primarily higher compensation costs of $12.3M, excluding acquisitions and currency effects.
Cost of sales$898.96M+7.3% YoY
Higher sales volume; LIFO expense of $5.6M versus $2.6M in the prior year negatively impacted gross margin by 0.2%.
Margins: Gross profit margin rose to 30.4% from 30.1%, aided by price contributions and channel execution, partly offset by higher LIFO expense. Operating margin improved to 11.1% from 10.8%.
Watch Items from the Filing
Operating cash flow fell to $86.4M from $119.3M, driven by a $45.1M cash outflow in accounts payable due to timing of vendor payments.
Total debt rose to $282.3M from $262.3M, and net interest expense increased to $3.1M from $1.0M following the January 2026 swap maturity.
Service Center operating margin declined to 12.9% from 13.3%, pressured by higher employee costs and accounts receivable provisioning; DSO rose to 57.3 days from 55.3.
Company repurchased $80.0M of common stock (245,285 shares) during the quarter, with 2.61M shares remaining under authorization.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
5 transactions in AIT reported by 2 members of Congress under the STOCK Act, most recent trade Feb 4, 2026. Reported transactions, not recommendations.
About APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT): stock profile, AI score and financials
APPLIED INDUSTRIAL TECHNOLOGIES INC (AIT) stock profile, AI quality score, and SEC EDGAR financial data, a Consumer Discretionary sector company. 13F Pro's AI-powered ranking engine scores AIT at 58.9/100 on a composite quality score built from its SEC filings, placing it at rank #970 of 2,925 stocks — the top half of the AI-ranked universe. AIT scores in the top quartile across balance sheet strength (91.6), revenue scale (77.8). Areas of concern include earnings quality (29.3), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q1 2027), APPLIED INDUSTRIAL TECHNOLOGIES INC reports quarterly revenue of $1.3B, net income of $110.4M, an operating margin of 11.1%. Top institutional holders of AIT by reported 13-F value include BlackRock, VANGUARD PORTFOLIO MANAGEMENT, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. AIT trades on the NYSE exchange and files with the SEC under CIK 109563. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate AIT daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for APPLIED INDUSTRIAL TECHNOLOGIES INC directly from SEC EDGAR.