Applied Industrial Technologies, Inc. (AIT) Income Statement

30Y historyFree accessUpdated daily

Revenue growth has reaccelerated to 10.4% year-over-year in Q4 FY2026, with gross margin expanding to a period-high of 31.6%, suggesting successful execution of the technical solutions strategy and pricing power.

Annual statement

AIT Income Statement

Applied Industrial Technologies, Inc. (AIT) annual income statement — 30-year revenue, gross profit & net income history

Annual Quarterly

Metric	Jun'26	Jun'25	Jun'24	Jun'23	Jun'22	Jun'21	Jun'20	Jun'19	Jun'18	Jun'17	Jun'16	Jun'15	Jun'14	Jun'13	Jun'12	Jun'11	Jun'10	Jun'09	Jun'08	Jun'07	Jun'06	Jun'05	Jun'04	Jun'03	Jun'02	Jun'01	Jun'00	Jun'99	Jun'98	Jun'97

Sales/Revenue	4.97B	4.56B	4.48B	4.41B	3.81B	3.24B	3.25B	3.47B	3.07B	2.59B	2.52B	2.75B	2.46B	2.46B	2.38B	2.21B	1.89B	1.92B	2.09B	2.01B	1.9B	1.72B	1.52B	1.46B	1.45B	1.63B	1.6B	1.56B	1.49B	1.16B
Revenue Growth %	8.84%	1.88%	1.51%	15.8%	17.76%	-0.3%	-6.54%	13%	18.49%	2.95%	-8.44%	11.86%	-0.09%	3.65%	7.35%	16.88%	-1.56%	-7.96%	3.74%	5.96%	10.7%	13.19%	3.59%	1.23%	-11.02%	1.54%	2.94%	4.29%	28.54%	1.45%
Cost of Goods Sold	3.46B	3.18B	3.14B	3.13B	2.7B	2.3B	2.31B	2.47B	2.19B	1.86B	1.81B	1.98B	1.77B	1.78B	1.72B	1.6B	1.38B	1.4B	1.52B	1.47B	1.39B	1.26B	1.11B	1.09B	1.08B	1.22B	1.21B	1.19B	1.08B	840.6M
COGS % of Revenue	69.66%	69.69%	70.16%	70.84%	70.95%	71.09%	71.11%	70.98%	71.24%	71.56%	71.92%	72.02%	72.07%	72.26%	72.45%	72.29%	72.76%	72.96%	72.75%	72.79%	72.96%	73.51%	73.49%	74.1%	74.72%	74.82%	75.54%	76.33%	72.31%	72.45%
Gross Profit	1.51B	1.38B	1.34B	1.29B	1.11B	935.52M	937.74M	1.01B	884M	737.7M	707.42M	769.81M	686.93M	682.96M	654.47M	613.11M	515.72M	520.01M	569.28M	548.05M	513.88M	454.85M	402.14M	379.3M	365.69M	409.3M	391.59M	368.18M	412.9M	319.7M
Gross Margin %	30.34%	30.31%	29.84%	29.16%	29.05%	28.91%	28.89%	29.02%	28.76%	28.44%	28.08%	27.98%	27.93%	27.74%	27.55%	27.71%	27.24%	27.04%	27.25%	27.21%	27.04%	26.49%	26.51%	25.9%	25.28%	25.18%	24.46%	23.67%	27.69%	27.55%
Gross Profit Growth %	8.94%	3.48%	3.86%	16.27%	18.32%	-0.24%	-6.94%	13.99%	19.83%	4.28%	-8.1%	12.07%	0.58%	4.35%	6.75%	18.88%	-0.82%	-8.66%	3.87%	6.65%	12.98%	13.11%	6.02%	3.72%	-10.65%	4.52%	6.36%	-10.83%	29.15%	3%
Operating Expenses	957.32M	884.63M	840.83M	813.81M	749.06M	730.07M	848.75M	773.84M	658.17M	562.31M	617.64M	585.2M	522.57M	506.56M	486.08M	462.35M	405.67M	447.52M	416.46M	413.04M	398.29M	366.88M	350.69M	343.04M	334.86M	354.3M	333.81M	325.91M	354.4M	269M
OpEx % of Revenue	19.27%	19.39%	18.77%	18.44%	19.66%	22.56%	26.15%	22.28%	21.42%	21.68%	24.52%	21.27%	21.24%	20.57%	20.46%	20.89%	21.43%	23.27%	19.93%	20.51%	20.95%	21.37%	23.12%	23.43%	23.15%	21.79%	20.85%	20.95%	23.76%	23.18%
Selling, General & Admin	957.32M	884.63M	840.83M	813.81M	749.67M	680.83M	717.98M	741.76M	658.17M	562.31M	552.85M	585.2M	522.57M	506.56M	486.08M	462.35M	405.67M	410.91M	416.46M	413.04M	398.29M	366.88M	350.69M	343.04M	334.86M	354.3M	333.81M	325.94M	333.4M	255.4M
SG&A % of Revenue	19.27%	19.39%	18.77%	18.44%	19.67%	21.04%	22.12%	21.36%	21.42%	21.68%	21.94%	21.27%	21.24%	20.57%	20.46%	20.89%	21.43%	21.37%	19.93%	20.51%	20.95%	21.37%	23.12%	23.43%	23.15%	21.79%	20.85%	20.96%	22.35%	22.01%
Research & Development	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	0	0	-610K	49.24M	130.77M	32.07M	0	0	64.79M	0	0	0	0	0	0	36.6M	0	0	0	0	0	0	0	0	0	-31K	21M	13.6M
Operating Income	549.47M	498.53M	495.82M	473.15M	357.86M	205.45M	88.99M	233.79M	225.83M	174.59M	88.8M	184.62M	164.36M	176.4M	168.4M	150.76M	110.05M	72.49M	152.82M	135.01M	115.59M	87.97M	51.45M	36.25M	30.83M	55M	57.72M	42.4M	58.5M	50.7M
Operating Margin %	11.06%	10.92%	11.07%	10.72%	9.39%	6.35%	2.74%	6.73%	7.35%	6.73%	3.52%	6.71%	6.68%	7.16%	7.09%	6.81%	5.81%	3.77%	7.31%	6.7%	6.08%	5.12%	3.39%	2.48%	2.13%	3.38%	3.6%	2.73%	3.92%	4.37%
Operating Income Growth %	10.22%	0.55%	4.79%	32.22%	74.18%	130.88%	-61.94%	3.53%	29.35%	96.61%	-51.9%	12.33%	-6.83%	4.75%	11.7%	36.99%	51.81%	-52.56%	13.19%	16.8%	31.4%	70.98%	41.91%	17.58%	-43.94%	-4.71%	36.13%	-27.52%	15.38%	3.05%
EBITDA	552.21M	559.01M	548.18M	526.22M	411.41M	260.6M	151.74M	295.91M	275.69M	214.27M	130.35M	226.99M	192.36M	202.13M	191.1M	173.38M	131.67M	94.88M	166.87M	148.75M	127.93M	104.44M	67.52M	51.46M	48.38M	77.51M	80.7M	65.1M	79.5M	64.3M
EBITDA Margin %	11.12%	12.25%	12.24%	11.92%	10.8%	8.05%	4.68%	8.52%	8.97%	8.26%	5.17%	8.25%	7.82%	8.21%	8.04%	7.84%	6.95%	4.93%	7.99%	7.39%	6.73%	6.08%	4.45%	3.51%	3.34%	4.77%	5.04%	4.19%	5.33%	5.54%
EBITDA Growth %	-1.22%	1.98%	4.17%	27.91%	57.87%	71.74%	-48.72%	7.33%	28.67%	64.38%	-42.58%	18.01%	-4.84%	5.78%	10.22%	31.68%	38.77%	-43.14%	12.18%	16.28%	22.49%	54.68%	31.21%	6.37%	-37.58%	-3.96%	23.97%	-18.11%	23.64%	-0.46%
D&A (Non-Cash Add-back)	0	60.48M	52.35M	53.07M	53.55M	55.15M	62.75M	62.12M	49.86M	39.68M	41.55M	42.38M	28M	25.73M	22.7M	22.62M	21.62M	22.39M	14.04M	13.74M	12.34M	16.47M	16.07M	15.21M	17.55M	22.51M	22.99M	22.7M	21M	13.6M
EBIT	552.21M	519.18M	518.67M	474.6M	356.57M	207.87M	220.11M	235.27M	228.86M	175.8M	87.98M	183.99M	167.16M	178.29M	167.28M	154.97M	110.75M	71.34M	152.82M	135.01M	115.59M	87.97M	51.45M	36.25M	30.83M	55M	57.78M	42.27M	58.5M	50.7M
Net Interest Income	-7.94M	-16.74M	-2.83M	-21.64M	-26.26M	-30.59M	-36.53M	-40.19M	-23.48M	-8.54M	-8.76M	-7.87M	-249K	-165K	9K	-1.67M	-5.46M	-4.42M	0	0	0	0	0	0	0	0	0	0	0	0
Interest Income	0	17.6M	17.71M	3.15M	522K	215K	729K	600K	657K	290K	241K	252K	651K	456K	466K	0	280K	0	0	0	0	0	0	0	0	0	0	0	0	0
Interest Expense	7.94M	34.34M	20.54M	24.79M	26.79M	30.81M	37.26M	40.79M	24.14M	8.83M	9M	8.12M	900K	621K	457K	1.67M	5.74M	4.42M	0	0	0	0	0	0	0	0	0	0	0	0
Other Income/Expense	-5.2M	2.44M	2.31M	-23.34M	-28.07M	-28.39M	-33.75M	-39.31M	-21.11M	-8.42M	-10.8M	-8.75M	1.9M	1.27M	-1.57M	2.13M	-5.03M	-6.68M	-1.11M	-1.18M	-2.49M	-1.63M	-4.98M	-5.32M	-7.08M	-9.65M	-7.23M	-9.64M	-8.7M	-5.6M
Pretax Income	544.27M	500.97M	498.13M	449.81M	329.79M	177.06M	55.24M	194.48M	204.72M	166.97M	78.98M	175.87M	166.26M	177.66M	166.83M	152.89M	105.02M	65.81M	151.72M	133.83M	113.1M	86.34M	46.47M	30.93M	23.75M	45.35M	50.55M	32.6M	49.8M	45.1M
Pretax Margin %	10.96%	10.98%	11.12%	10.19%	8.65%	5.47%	1.7%	5.6%	6.66%	6.44%	3.13%	6.39%	6.76%	7.22%	7.02%	6.91%	5.55%	3.42%	7.26%	6.64%	5.95%	5.03%	3.06%	2.11%	1.64%	2.79%	3.16%	2.1%	3.34%	3.89%
Income Tax	129.75M	107.98M	112.37M	103.07M	72.38M	32.3M	31.19M	50.49M	63.09M	33.06M	49.4M	60.39M	53.44M	59.52M	58.05M	56.13M	39.11M	23.55M	56.26M	47.81M	40.8M	31M	15M	11.1M	9M	17.3M	19.5M	12.7M	19.7M	18M
Effective Tax Rate %	23.84%	21.55%	22.56%	22.91%	21.95%	18.25%	56.47%	25.96%	30.82%	19.8%	62.55%	34.34%	32.14%	33.5%	34.79%	36.71%	37.25%	35.79%	37.08%	35.72%	36.07%	35.9%	32.28%	35.89%	37.89%	38.15%	38.58%	38.96%	39.56%	39.91%
Net Income	414.52M	392.99M	385.76M	346.74M	257.41M	144.76M	24.04M	143.99M	141.63M	133.91M	29.58M	115.48M	112.82M	118.15M	108.78M	96.76M	65.9M	42.26M	95.46M	86.02M	72.3M	55.34M	31.47M	19.83M	2.65M	28.05M	31.05M	19.9M	30.1M	27.1M
Net Margin %	8.35%	8.61%	8.61%	7.86%	6.76%	4.47%	0.74%	4.15%	4.61%	5.16%	1.17%	4.2%	4.59%	4.8%	4.58%	4.37%	3.48%	2.2%	4.57%	4.27%	3.8%	3.22%	2.07%	1.35%	0.18%	1.73%	1.94%	1.28%	2.02%	2.34%
Net Income Growth %	5.48%	1.87%	11.25%	34.7%	77.82%	502.1%	-83.3%	1.67%	5.76%	352.75%	-74.39%	2.36%	-4.51%	8.61%	12.42%	46.82%	55.95%	-55.73%	10.97%	18.98%	30.65%	75.84%	58.69%	646.97%	-90.53%	-9.66%	56.02%	-33.89%	11.07%	16.31%
Net Income (Continuing)	414.52M	392.99M	385.76M	346.74M	257.41M	144.76M	24.04M	143.99M	141.63M	133.91M	29.58M	115.48M	112.82M	118.15M	108.78M	96.76M	65.9M	42.26M	95.46M	86.02M	72.3M	55.34M	31.47M	19.83M	14.76M	28.05M	31.05M	19.93M	30.1M	27.1M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)	10.95	10.12	9.83	8.84	6.58	3.68	0.62	3.68	3.61	3.40	0.75	2.80	2.67	2.78	2.54	2.24	1.54	0.99	2.19	1.93	1.57	0.80	0.48	0.46	0.06	0.63	0.67	0.41	0.61	0.65
EPS Growth %	8.2%	2.95%	11.2%	34.35%	78.8%	493.55%	-83.15%	1.94%	6.18%	353.33%	-73.21%	4.87%	-3.96%	9.45%	13.39%	45.45%	55.56%	-54.79%	13.47%	22.93%	96.25%	66.67%	4.35%	695.85%	-90.83%	-5.97%	63.41%	-32.79%	-6.15%	16.07%
EPS (Basic)	11.09	10.26	9.98	8.98	6.69	3.73	0.62	3.72	3.65	3.43	0.75	2.82	2.69	2.81	2.58	2.28	1.56	1.00	2.23	1.97	1.62	0.83	0.48	0.47	0.06	0.64	0.68	0.41	0.62	0.65
Diluted Shares Outstanding	37.86M	38.82M	39.26M	39.22M	39.1M	39.3M	39M	39.16M	39.28M	39.4M	39.47M	41.19M	42.33M	42.54M	42.82M	43.25M	42.92M	42.79M	43.55M	44.57M	46.05M	45.93M	44.03M	43.32M	45.95M	44.76M	46.57M	48.23M	49.08M	41.76M
Basic Shares Outstanding	37.38M	38.29M	38.67M	38.59M	38.47M	38.76M	38.66M	38.67M	38.75M	39.01M	39.25M	40.89M	41.94M	42.06M	42.14M	42.43M	42.31M	42.29M	42.8M	43.67M	44.63M	44.33M	43.15M	42.5M	42.67M	44.13M	45.96M	48.23M	48.38M	41.76M
Dividend Payout Ratio	17.51%	16.21%	14.49%	15.41%	20.13%	35%	203.28%	32.83%	32.38%	33.32%	146.5%	36.94%	35.82%	31.48%	31.07%	30.75%	38.57%	60.05%	26.95%	24.38%	24.86%	23.02%	29.47%	46.16%	349.15%	33.98%	31.98%	52.26%	34.22%	28.41%

Key Metrics

Growth RegimeAccelerating

ProfitabilityStrong

Balance SheetFortress

Cash FlowRobust

Top Statement Risk

Valuation premium vulnerable to macro softening

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q4)

Growth Reacceleration Driven by Technical Mix

Applied Industrial's revenue growth has reaccelerated to 10.4% in Q4 FY2026, a significant improvement from the near-flat growth seen in early 2025, suggesting successful execution of its technical solutions strategy and favorable industrial conditions.

The growth trajectory shows a clear inflection from stagnation to acceleration, with the most recent quarter posting the strongest year-over-year growth in the dataset. This appears to be driven by a combination of volume recovery and a mix shift toward higher-value Fluid Power and Automation projects, which carry larger ticket sizes. The durability of this acceleration will depend on sustained North American industrial activity and the company's ability to continue winning complex, engineered system orders over commodity distribution.

Gross Margin Expansion Signals Pricing Power

Gross margin expanded to 31.6% in Q4 FY2026, the highest level in the ten-quarter period, indicating that AIT's technical integration model is providing meaningful pricing power and insulation from pure commodity cost pressures.

The gross margin trend has been steadily improving from a low of 28.9% in Q2 FY2026, suggesting the company is successfully passing through input costs and capturing value from its specialized engineering services. This margin level, while below pure-play distributors like Fastenal, is robust for a company with AIT's cyclical exposure and indicates a structural shift toward higher-margin revenue streams. Investors should monitor whether this margin level is sustainable or if it reflects temporary benefits from favorable inventory accounting or project timing.

Operating Leverage Demonstrated in Recent Quarter

Operating income grew 5.6% sequentially in Q4 FY2026 despite a 7.7% revenue increase, demonstrating effective operating leverage as incremental sales flow through to profit with disciplined overhead management.

The operating margin of 10.5% in the latest quarter, while slightly below the 12.0% peak in Q2 FY2026, shows the company is maintaining profitability as it scales. The relationship between gross profit growth and operating income growth suggests that SG&A expenses are being managed efficiently relative to the revenue base. This operating leverage is a key feature of the distribution model, where fixed branch costs can be spread across a larger volume, and its continuation would be a positive signal for earnings durability.

EPS Growth Outpaces Net Income Growth

Diluted EPS grew 12.9% year-over-year in Q4 FY2026, outpacing the 10.0% growth in net income, which suggests effective capital management and a modest tailwind from share count reduction.

The divergence between EPS and net income growth indicates that the company's earnings per share are being enhanced by factors beyond pure operational performance, likely including share repurchases. The quality of earnings appears solid, with net income margins holding steady around 8.8%, but investors should examine the cash flow statement to confirm that reported earnings are converting into free cash flow. The minimal stock-based compensation expense relative to net income also suggests that shareholder dilution is not a significant concern.

SG&A Discipline Supports Margin Structure

SG&A expenses as a percentage of revenue have remained relatively stable between 19-21% over the past ten quarters, indicating disciplined overhead management despite investments in technical talent and integration capabilities.

The cost structure shows that COGS remains the dominant expense at approximately 68-71% of revenue, typical for distribution, but the stability of SG&A as a percentage of sales suggests management is effectively controlling fixed costs. The absence of R&D expense in the reported data is notable and may indicate that innovation costs are embedded within SG&A or that the company's technical differentiation comes from application engineering rather than formal R&D programs. This cost discipline is critical for maintaining profitability during periods of slower revenue growth.

Valuation Premium Faces Macro Headwinds

The current P/E ratio appears elevated relative to historical medians, creating vulnerability if the recent growth acceleration proves cyclical rather than structural, particularly given AIT's sensitivity to North American industrial production.

The strongest analytical challenge to the current narrative is that the market may be pricing in a permanent shift to higher growth and margins when the performance could be cyclical. AIT's revenue growth of 10.4% in the latest quarter is strong but follows periods of near-zero growth, suggesting this could be a cyclical recovery rather than a new trajectory. If industrial activity softens or if the technical solutions growth decelerates, the premium valuation could compress significantly, especially since the company's MRO-heavy revenue floor may not support the same growth rates as pure automation plays.

AIT — Frequently Asked Questions

Quick answers to the most common questions about buying AIT stock.

What was Applied Industrial Technologies, Inc.'s (AIT) revenue in 2026?

For fiscal year 2026, Applied Industrial Technologies, Inc. (AIT) reported total revenue of $4.97B. This represents a 328.1% increase compared to $1.16B in 1997.

Is Applied Industrial Technologies, Inc. (AIT) profitable?

Applied Industrial Technologies, Inc. (AIT) is profitable, generating $414.5M in net income for the fiscal year ending 2026 with a net profit margin of 8.3%.

What is Applied Industrial Technologies, Inc.'s operating profit margin?

Applied Industrial Technologies, Inc. (AIT) reported an operating income of $549.5M, resulting in an operating profit margin of 11.1%. This margin reflects the operational efficiency of the business before interest and taxes.

What is Applied Industrial Technologies, Inc.'s gross profit and gross margin?

Applied Industrial Technologies, Inc. (AIT) generated $1.51B in gross profit for the year, representing a gross profit margin of 30.3%. This demonstrates the company's core pricing power and production efficiency.