Pentair shares plummet premarket after guidance cut, surprise CFO exit

Investing.com -- Pentair shares are down 19.6% ahead of the open after the company released a negative preannouncement after the close on Tuesday, cutting full-year guidance, and disclosing the departure of its Chief Financial Officer.

Pentair announced that Nicholas Brazis departed as CFO on July 10, 2026, to pursue an opportunity at a private company, with Bob Fishman, Pentair's former Executive Vice President and CFO, appointed Interim EVP and CFO effective immediately.

The company also released preliminary second-quarter results, with sales expected at approximately $930 million, down 17% versus its previous guide of up approximately 1%, driven by destocking in the Pool channel.

Adjusted EPS is expected at approximately $1.12, down from a prior guide of $1.47 to $1.50. Pentair said Pool channel destocking negatively impacted segment sales by approximately $170 million in the quarter.

Full-year guidance was also cut, with sales now expected down 4% to 7% versus a prior guide of up 2% to 4%, and adjusted EPS expected at $4.60 to $4.80, down from $5.30 to $5.40.

Following the news, RBC Capital downgraded Pentair to Sector Perform from Outperform, with analyst Deane Dray citing a "~24% 2Q26 EPS miss" and calling the CFO transition "an embarrassing development."

RBC lowered its price target by $27 to $74, noting Pool destocking "is clearly proving far worse than management signaled on the 1Q26 call."

RBC added that weakness remains isolated to Pool, with Flow and Water Solutions segments expected to perform roughly in line with prior guidance.

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