Air Products Sentiment Turns Bullish on 'Beat and Raise' Hopes, BofA Says

Investor sentiment surrounding Air Products and Chemicals (NYSE: APD) has turned decidedly bullish, with market participants anticipating the company will beat fiscal third-quarter estimates and raise its full-year guidance, according to a new Bank of America client note. The shift in outlook follows the company's formal cancellation of its Darrow, Louisiana, blue hydrogen project.

Bullish Outlook for Air Products

Bank of America's report indicates that clients are optimistic about Air Products' upcoming earnings report, citing several potential drivers. Investors expect strength to come from a combination of cost reductions, improved pricing power, and rising helium prices.

Following strong earnings beats in the first two fiscal quarters, discussions among investors now point to a potential new earnings per share (EPS) guidance range of $13.15 to $13.35 for fiscal 2026, the note stated.

Expectations Across the Chemical Sector

Ad

Bank of America's note also provided a snapshot of investor sentiment for several other major chemical companies ahead of their earnings reports, revealing a mixed but generally positive set of expectations.

• Linde (NYSE: LIN): Expected to raise full-year guidance to 8% to 10% EPS growth, implying a new range of $17.75 to $18.10 per share.
• Dow (NYSE: DOW): Anticipated to report second-quarter EBITDA above its $2.2 billion guidance, although clients expect a softer Q3 outlook.
• Ecolab (NYSE: ECL): Investors widely expect the company to beat Q2 estimates and raise its full-year earnings guidance, viewing its July 2 update as conservative.
• PPG Industries (NYSE: PPG): The consensus is for a Q2 earnings beat of more than $0.04 per share and a reiteration of 2026 guidance, with a possible increase at the low end.
• Mosaic (NYSE: MOS): In contrast, results are expected to be soft for the second quarter. The note highlighted concerns about the company's outlook due to volume pressures and fixed cost absorption from idled capacity.

Market Context

This type of pre-earnings channel check provides institutional investors with a glimpse into the prevailing sentiment on Wall Street. For the chemicals sector, the expectations suggest a varied operating environment where company-specific actions, such as cost-cutting and project management, are key differentiators. While some firms are poised to benefit from pricing power and efficiency gains, others face headwinds from capacity and volume challenges.