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Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

POOL CORPORATION REPORTS THIRD QUARTER RESULTS;

CONFIRMS ANNUAL EARNINGS GUIDANCE RANGE

 

Q3 2026 Highlights:

•
Net sales increased 4% to $1.5 billion, accelerating from 2% growth in the second quarter, supported by price, solid maintenance growth and continued improvement in building materials
•
Operating income decreased 3% to $172.2 million from $178.0 million in Q3 2025
•
Diluted EPS consistent with Q3 2025 at $3.40; adjusted diluted EPS increased $0.01
•
Confirms annual earnings guidance range of $10.66 to $10.96 per diluted share, and adjusted diluted earnings guidance range of $10.87 to $11.17 per share including $0.02 of year-to-date ASU 2016-09 tax benefits

______________________

COVINGTON, LA. (October 22, 2026) – Pool Corporation (Nasdaq: POOL) today reported results for the third quarter of 2026.

“Building on our performance through the first half of the year, we delivered solid results in the third quarter of 2026 as we moved through the end of the peak selling season. Our dedicated teams produced top-line growth by delivering to our customers when they needed it the most. At the same time, we remained committed to disciplined capital allocation, reducing inventory by 3% while growing sales. Through the first nine months of the year, we generated $419.8 million in operating cash flows, and in the third quarter alone we returned $158.7 million to shareholders through share repurchases and dividends. As the industry leader, we are focused on supporting our partners to collectively grow the outdoor living industry, efficiently bringing new products to market and offering the best value proposition to our customers,” said John B. Watwood, president and CEO.

Third quarter ended September 30, 2026 compared to the third quarter ended September 30, 2025

Net sales increased 4% to $1.5 billion in the third quarter of 2026. The increase primarily reflected 3% growth from price, coupled with stronger maintenance activity and building materials growth.

Gross profit increased 2% to $436.3 million. Gross margin decreased 60 basis points to 29.0% from 29.6% in the same period of 2025. The decrease was primarily driven by higher inbound freight costs and customer mix, as well as the comparison against the prior year benefit from mid-season price increases.

Selling and administrative expenses (operating expenses) increased 5% to $264.1 million from $251.2 million in the same period in 2025, reflecting higher performance-based compensation resulting from increased sales, increases in employee insurance and outside fees related to our strategic initiatives.

Operating income decreased 3% to $172.2 million compared to $178.0 million in the same period last year.

Net income decreased 3% to $123.0 million from $127.0 million in the third quarter of 2025.

Earnings per diluted share was $3.40, consistent with the third quarter of 2025. Adjusting for the impact from Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting, earnings per diluted share was $3.40 in the third quarter of 2026 compared to $3.39 in the same period of 2025.

 


Nine months ended September 30, 2026 compared to the nine months ended September 30, 2025

Net sales increased 4% to $4.5 billion from $4.3 billion in the nine months ended September 30, 2025. Gross margin declined 30 basis points to 29.3% from 29.6% in the same period last year.

Operating expenses increased 5% to $784.5 million compared to $748.5 million for the same period in 2025. Operating expenses for the nine months ended September 30, 2026 included $8.3 million of CEO transition costs, comprised of $6.3 million of non-cash share-based compensation expense for awards previously granted but not fully amortized and $2.0 million of cash transition costs. Adjusting for the impact of CEO transition costs, operating expenses increased 4%.

Operating income was $522.5 million compared to $528.2 million in the same period last year. Adjusted operating income was $530.7 million, in line with the same period of 2025.

Net income decreased 3% to $364.4 million compared to $374.8 million in the nine months ended September 30, 2025. We recorded a $0.7 million, or $0.02 per diluted share, tax benefit from ASU 2016-09 in 2026 compared to a $4.2 million, or $0.11 per diluted share, tax benefit in the same period of 2025. Adjusted net income for the nine months ended September 30, 2026 was $371.2 million compared to $370.6 million in the nine months ended September 30, 2025.

Earnings per diluted share increased 1% to $10.02 compared to $9.97 in the same period of 2025. Adjusted earnings per diluted share increased 4% to $10.21 from $9.86 in the first nine months of 2025.

Balance Sheet and Liquidity

Inventory decreased 3% at September 30, 2026 compared to September 30, 2025, while third quarter net sales increased 4% year over year. Total debt outstanding increased $104.9 million to $1.2 billion at September 30, 2026.

Net cash provided by operations increased 47% to $419.8 million in the first nine months of 2026 compared to $285.7 million in the first nine months of 2025. Year to date, we have returned $338.1 million to our shareholders through $140.1 million in dividends and $198.0 million in share repurchases. These returns were primarily funded by operating cash flows, after investing $49.8 million in the business and making $33.1 million in net debt repayments. We have also increased our quarterly dividend by 4% to $1.30 per share from $1.25 per share in the third quarter of 2025.

Outlook

“Based on our performance to date and outlook for the remainder of the year, we are confirming our full-year adjusted diluted EPS guidance range of $10.87 to $11.17. As we look forward to closing out 2026, I am proud of the POOLCORP team, whose dedication and execution are the true source of our success. Our unmatched network, solid operational performance and strong supplier relationships position us well to continue delivering exceptional value to our customers and the outdoor living industry,” said Watwood.

The table below further illustrates our current guidance:

(Unaudited)

 

2026 Guidance Range

 

 

 

Floor

 

Ceiling

 

Diluted EPS (1)

 

$

10.66

 

$

10.96

 

After-tax CEO transition costs

 

 

0.21

 

 

0.21

 

Adjusted diluted EPS (1)

 

$

10.87

 

$

11.17

 

 

(1)
Includes $0.02 of year-to-date ASU 2016-09 tax benefits.

 

2


Non-GAAP Financial Measures

This press release contains certain non-GAAP measures. See the addendum to this release for definitions of our non-GAAP measures and reconciliations of our non-GAAP measures to GAAP measures.

About Pool Corporation

POOLCORP is the world’s largest wholesale distributor of swimming pool and related backyard products. As of September 30, 2026, POOLCORP operated 454 sales centers in North America, Europe and Australia, through which it distributes more than 200,000 products to roughly 125,000 wholesale customers. For more information, please visit www.poolcorp.com.

Forward-Looking Statements

This news release includes “forward-looking” statements that involve risks and uncertainties that are generally identifiable through the use of words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “should,” “will,” “may,” “outlook,” and other words and similar expressions and include projections of earnings. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date of this release, and we undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur. Actual results may differ materially due to a variety of factors, including the sensitivity of our business to weather conditions; changes in economic conditions, consumer discretionary spending, the housing market, inflation or interest rates; our ability to maintain favorable relationships with suppliers and manufacturers; competition from other leisure product alternatives or mass merchants; our ability to continue to execute our growth strategies; changes in the regulatory environment; new or additional taxes, duties or tariffs; excess tax benefits or deficiencies recognized under ASU 2016-09 and other risks detailed in POOLCORP’s 2025 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports and filings filed with the Securities and Exchange Commission (SEC) as updated by POOLCORP’s subsequent filings with the SEC.

 

Kristin S. Byars

Director, Investor Relations and Finance

985.801.5153

kristin.byars@poolcorp.com

 

3


 

POOL CORPORATION

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share data)

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net sales

 

$

1,504,957

 

 

$

1,451,131

 

 

$

4,465,909

 

 

$

4,307,187

 

Cost of sales

 

 

1,068,640

 

 

 

1,021,948

 

 

 

3,158,959

 

 

 

3,030,474

 

Gross profit

 

 

436,317

 

 

 

429,183

 

 

 

1,306,950

 

 

 

1,276,713

 

Percent

 

 

29.0

%

 

 

29.6

%

 

 

29.3

%

 

 

29.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative expenses

 

 

264,122

 

 

 

251,196

 

 

 

784,464

 

 

 

748,518

 

Operating income

 

 

172,195

 

 

 

177,987

 

 

 

522,486

 

 

 

528,195

 

Percent

 

 

11.4

%

 

 

12.3

%

 

 

11.7

%

 

 

12.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other non-operating expenses, net

 

 

11,762

 

 

 

12,004

 

 

 

38,402

 

 

 

35,387

 

Income before income taxes and equity in earnings

 

 

160,433

 

 

 

165,983

 

 

 

484,084

 

 

 

492,808

 

Provision for income taxes

 

 

37,449

 

 

 

38,985

 

 

 

119,774

 

 

 

118,048

 

Equity in earnings of unconsolidated investments, net

 

 

58

 

 

 

15

 

 

 

51

 

 

 

56

 

Net income

 

$

123,042

 

 

$

127,013

 

 

$

364,361

 

 

$

374,816

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to common stockholders: (1)

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

3.41

 

 

$

3.41

 

 

$

10.03

 

 

$

10.01

 

Diluted

 

$

3.40

 

 

$

3.40

 

 

$

10.02

 

 

$

9.97

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

35,881

 

 

 

37,090

 

 

 

36,108

 

 

 

37,272

 

Diluted

 

 

35,923

 

 

 

37,223

 

 

 

36,163

 

 

 

37,420

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

1.30

 

 

$

1.25

 

 

$

3.85

 

 

$

3.70

 

 

(1)
Earnings per share under the two-class method is calculated using net income attributable to common stockholders (net income reduced by earnings allocated to participating securities), which was $122.3 million and $126.4 million for the three months ended September 30, 2026 and September 30, 2025, respectively, and $362.3 million and $373.0 million for the nine months ended September 30, 2026 and September 30, 2025, respectively. Participating securities excluded from weighted average common shares outstanding were 216,000 and 184,000 for the three months ended September 30, 2026 and September 30, 2025, respectively, and 206,000 and 184,000 for the nine months ended September 30, 2026 and September 30, 2025, respectively.

4


 

POOL CORPORATION

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

 

September 30,

 

 

September 30,

 

 

Change

 

2026

 

 

2025

 

 

$

 

%

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

105,657

 

 

$

128,483

 

 

$

(22,826

)

 

(18

)

%

Receivables, net (1)

 

 

135,492

 

 

 

138,072

 

 

 

(2,580

)

 

(2

)

 

Receivables pledged under receivables facility

 

 

342,965

 

 

 

305,537

 

 

 

37,428

 

 

12

 

 

Product inventories, net (2)

 

 

1,185,177

 

 

 

1,223,809

 

 

 

(38,632

)

 

(3

)

 

Prepaid expenses and other current assets

 

 

52,365

 

 

 

53,138

 

 

 

(773

)

 

(1

)

 

Total current assets

 

 

1,821,656

 

 

 

1,849,039

 

 

 

(27,383

)

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

281,030

 

 

 

267,408

 

 

 

13,622

 

 

5

 

 

Goodwill

 

 

706,683

 

 

 

705,266

 

 

 

1,417

 

 

0

 

 

Other intangible assets, net

 

 

277,972

 

 

 

285,409

 

 

 

(7,437

)

 

(3

)

 

Equity interest investments

 

 

1,645

 

 

 

1,514

 

 

 

131

 

 

9

 

 

Operating lease assets

 

 

342,895

 

 

 

319,898

 

 

 

22,997

 

 

7

 

 

Other assets

 

 

53,588

 

 

 

72,137

 

 

 

(18,549

)

 

(26

)

 

Total assets

 

$

3,485,469

 

 

$

3,500,671

 

 

$

(15,202

)

 

(0

)

%

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

423,865

 

 

$

457,319

 

 

$

(33,454

)

 

(7

)

 

Accrued expenses and other current liabilities

 

 

174,146

 

 

 

147,122

 

 

 

27,024

 

 

18

 

 

Short-term borrowings and current portion of long-term debt

 

 

20,952

 

 

 

12,881

 

 

 

8,071

 

 

63

 

 

Current operating lease liabilities

 

 

120,756

 

 

 

102,189

 

 

 

18,567

 

 

18

 

 

Total current liabilities

 

 

739,719

 

 

 

719,511

 

 

 

20,208

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

93,984

 

 

 

79,101

 

 

 

14,883

 

 

19

 

 

Long-term debt, net

 

 

1,145,930

 

 

 

1,049,121

 

 

 

96,809

 

 

9

 

 

Other long-term liabilities

 

 

47,620

 

 

 

47,342

 

 

 

278

 

 

1

 

 

Non-current operating lease liabilities

 

 

231,098

 

 

 

225,706

 

 

 

5,392

 

 

2

 

 

Total liabilities

 

 

2,258,351

 

 

 

2,120,781

 

 

 

137,570

 

 

6

 

 

Total stockholders’ equity

 

 

1,227,118

 

 

 

1,379,890

 

 

 

(152,772

)

 

(11

)

 

Total liabilities and stockholders’ equity

 

$

3,485,469

 

 

$

3,500,671

 

 

$

(15,202

)

 

(0

)

%

 

(1)
The allowance for doubtful accounts was $10.3 million at September 30, 2026 and $8.3 million at September 30, 2025.
(2)
The inventory reserve was $24.9 million at September 30, 2026 and $29.0 million at September 30, 2025.

 

5


 

POOL CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 

Nine Months Ended

 

 

 

 

 

September 30,

 

 

 

 

 

2026

 

 

2025

 

 

Change

 

Operating activities

 

 

 

 

 

 

 

 

 

Net income

 

$

364,361

 

 

$

374,816

 

 

$

(10,455

)

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation

 

 

34,461

 

 

 

30,438

 

 

 

4,023

 

Amortization

 

 

6,750

 

 

 

6,598

 

 

 

152

 

Share-based compensation

 

 

22,437

 

 

 

17,385

 

 

 

5,052

 

Equity in earnings of unconsolidated investments, net

 

 

(51

)

 

 

(56

)

 

 

5

 

Other

 

 

3,489

 

 

 

459

 

 

 

3,030

 

Changes in operating assets and liabilities, net of effects of acquisitions:

 

 

 

 

 

 

 

 

 

Receivables

 

 

(134,083

)

 

 

(123,914

)

 

 

(10,169

)

Product inventories

 

 

264,883

 

 

 

77,407

 

 

 

187,476

 

Prepaid expenses and other assets

 

 

19,765

 

 

 

73,226

 

 

 

(53,461

)

Accounts payable

 

 

(225,440

)

 

 

(69,794

)

 

 

(155,646

)

Accrued expenses and other liabilities

 

 

63,252

 

 

 

(100,822

)

 

 

164,074

 

Net cash provided by operating activities

 

 

419,824

 

 

 

285,743

 

 

 

134,081

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

Acquisition of businesses, net of cash acquired

 

 

—

 

 

 

(7,116

)

 

 

7,116

 

Purchases of property and equipment, net of sale proceeds

 

 

(49,772

)

 

 

(48,123

)

 

 

(1,649

)

Other investments, net

 

 

2,328

 

 

 

(508

)

 

 

2,836

 

Net cash used in investing activities

 

 

(47,444

)

 

 

(55,747

)

 

 

8,303

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

 

Proceeds from revolving line of credit

 

 

1,351,300

 

 

 

1,417,100

 

 

 

(65,800

)

Payments on revolving line of credit

 

 

(1,496,400

)

 

 

(1,390,400

)

 

 

(106,000

)

Proceeds from term loan under credit facility

 

 

—

 

 

 

125,000

 

 

 

(125,000

)

Payments on term loan under credit facility

 

 

—

 

 

 

(87,500

)

 

 

87,500

 

Proceeds from asset-backed financing

 

 

390,300

 

 

 

437,600

 

 

 

(47,300

)

Payments on asset-backed financing

 

 

(278,800

)

 

 

(370,400

)

 

 

91,600

 

Payments on term facility

 

 

—

 

 

 

(19,938

)

 

 

19,938

 

Proceeds from short-term borrowings and current portion of long-term debt

 

 

7,103

 

 

 

17,431

 

 

 

(10,328

)

Payments on short-term borrowings and current portion of long-term debt

 

 

(6,555

)

 

 

(16,523

)

 

 

9,968

 

Payments of deferred financing costs

 

 

(359

)

 

 

(1,397

)

 

 

1,038

 

Payments of excise tax on repurchases of common stock

 

 

(2,974

)

 

 

—

 

 

 

(2,974

)

Proceeds from stock issued under share-based compensation plans

 

 

5,018

 

 

 

9,203

 

 

 

(4,185

)

Payments of cash dividends

 

 

(140,105

)

 

 

(138,664

)

 

 

(1,441

)

Repurchases of common stock

 

 

(198,046

)

 

 

(163,884

)

 

 

(34,162

)

Net cash used in financing activities

 

 

(369,518

)

 

 

(182,372

)

 

 

(187,146

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(2,168

)

 

 

2,997

 

 

 

(5,165

)

Change in cash and cash equivalents

 

 

694

 

 

 

50,621

 

 

 

(49,927

)

Cash and cash equivalents at beginning of period

 

 

104,963

 

 

 

77,862

 

 

 

27,101

 

Cash and cash equivalents at end of period

 

$

105,657

 

 

$

128,483

 

 

$

(22,826

)

 

6


 

ADDENDUM

 

Base Business

 

When calculating our base business results, we exclude for a period of 15 months sales centers that are acquired, opened in new markets or closed. We also exclude consolidated sales centers when we do not expect to maintain the majority of the existing business and existing sales centers that are consolidated with acquired sales centers.

We generally allocate corporate overhead expenses to excluded sales centers on the basis of their net sales as a percentage of total net sales. After 15 months, we include acquired, consolidated and new market sales centers in the base business calculation including the comparative prior year period.

We have not provided separate base business income statement data within this press release as our base business results for the three and nine months ended September 30, 2026 closely approximated our consolidated results. Excluded sales centers contributed less than 1% to the change in our reported net sales.

The table below summarizes the changes in our sales centers during the first nine months of 2026.

 

December 31, 2025

456

New locations

2

Consolidated locations

(4)

September 30, 2026

454

 

7


 

Reconciliation of Non-GAAP Financial Measures

 

The non-GAAP measures described below should be considered in the context of all of our other disclosures in this press release.

 

Adjusted EBITDA

 

We define Adjusted EBITDA as net income or net loss plus interest and other non-operating expenses, provision for income taxes, depreciation, amortization, share-based compensation, goodwill and other impairments, equity in earnings or loss of unconsolidated investments, and other items that management believes are not indicative of ongoing operating performance. Other companies may calculate Adjusted EBITDA differently than we do, which may limit its usefulness as a comparative measure.

 

Adjusted EBITDA is not a measure of performance as determined by generally accepted accounting principles (GAAP). We believe Adjusted EBITDA should be considered in addition to, not as a substitute for, operating income or loss, net income or loss, net cash flows provided by or used in operating, investing and financing activities or other income statement or cash flow statement line items reported in accordance with GAAP.

 

From time to time, we use Adjusted EBITDA as a supplemental disclosure because management uses it to monitor our performance, and we believe that it is widely used by our investors, industry analysts and others as a useful supplemental performance measure. We believe that Adjusted EBITDA, when viewed with our GAAP results and the accompanying reconciliations, provides an additional measure that enables management and investors to monitor factors and trends affecting our ability to service debt, pay taxes and fund capital expenditures.

The table below presents a reconciliation of net income to Adjusted EBITDA.

(Unaudited)

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 30,

 

 

September 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net income

 

$

123,042

 

 

$

127,013

 

 

$

364,361

 

 

$

374,816

 

Adjustments to increase (decrease) net income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other non-operating expenses (1)

 

 

11,415

 

 

 

11,622

 

 

 

37,846

 

 

 

35,633

 

Provision for income taxes

 

 

37,449

 

 

 

38,985

 

 

 

119,774

 

 

 

118,048

 

Share-based compensation (2)

 

 

4,962

 

 

 

4,435

 

 

 

22,437

 

 

 

17,385

 

Equity in earnings of unconsolidated investments, net

 

 

(58

)

 

 

(15

)

 

 

(51

)

 

 

(56

)

Depreciation

 

 

11,807

 

 

 

10,634

 

 

 

34,461

 

 

 

30,438

 

Amortization (3)

 

 

1,917

 

 

 

2,000

 

 

 

5,910

 

 

 

5,925

 

CEO cash transition costs (2)

 

 

—

 

 

 

—

 

 

 

1,962

 

 

 

—

 

Adjusted EBITDA

 

$

190,534

 

 

$

194,674

 

 

$

586,700

 

 

$

582,189

 

 

(1)
Excludes loss (gain) on foreign currency transactions of $347 and $382 for the three months ended September 30, 2026 and September 30, 2025, respectively, and $556 and ($246) for the nine months ended September 30, 2026 and September 30, 2025, respectively.
(2)
CEO transition costs comprise $6.3 million included within share-based compensation for awards previously granted but not fully amortized and $2.0 million of cash transition costs for a total of $8.3 million included in Selling and administrative expenses on the Consolidated Statements of Income for the nine months ended September 30, 2026.
(3)
Excludes amortization of deferred financing costs of $290 and $286 for the three months ended September 30, 2026 and September 30, 2025, respectively, and $840 and $673 for the nine months ended September 30, 2026 and September 30, 2025, respectively. This non-cash expense is included in Interest and other non-operating expenses, net on the Consolidated Statements of Income.

8


 

 

Adjusted Income Statement Information

 

We have included adjusted operating expenses, adjusted operating income, adjusted net income and adjusted diluted EPS, which are non-GAAP financial measures, in this press release as supplemental disclosures because we believe these measures are useful to management, investors and others in assessing our period-over-period operating performance. We believe these measures should be considered in addition to, not as a substitute for, operating expenses, operating income, net income and diluted EPS presented in accordance with GAAP and in the context of our other disclosures in this press release. Other companies may calculate these non-GAAP financial measures differently than we do, which may limit their usefulness as comparative measures.

 

The table below presents a reconciliation of operating expenses to adjusted operating expenses.

 

(Unaudited)

 

Nine Months Ended

 

(In thousands)

 

September 30,

 

 

 

2026

 

Operating expenses

 

$

784,464

 

CEO transition costs

 

 

(8,262

)

Adjusted operating expenses

 

$

776,202

 

 

The table below presents a reconciliation of operating income to adjusted operating income.

 

(Unaudited)

 

Nine Months Ended

 

(In thousands)

 

September 30,

 

 

 

2026

 

Operating income

 

$

522,486

 

CEO transition costs

 

 

8,262

 

Adjusted operating income

 

$

530,748

 

 

The table below presents a reconciliation of net income to adjusted net income.

 

(Unaudited)

 

Nine Months Ended

 

(In thousands)

 

September 30,

 

 

 

2026

 

2025

 

Net income

 

$

364,361

 

$

374,816

 

CEO transition costs

 

 

8,262

 

 

—

 

Tax impact

 

 

(738

)

 

—

 

ASU 2016-09 tax benefit

 

 

(714

)

 

(4,181

)

Adjusted net income

 

$

371,171

 

$

370,635

 

 

The table below presents a reconciliation of diluted EPS to adjusted diluted EPS.

 

(Unaudited)

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2026

 

2025

 

2026

 

2025

 

Diluted EPS

 

$

3.40

 

$

3.40

 

$

10.02

 

$

9.97

 

After-tax CEO transition costs

 

 

—

 

 

—

 

 

0.21

 

 

—

 

ASU 2016-09 tax benefit

 

 

—

 

 

(0.01

)

 

(0.02

)

 

(0.11

)

Adjusted diluted EPS

 

$

3.40

 

$

3.39

 

$

10.21

 

$

9.86

 

 

 

9