TT

Trane Technologies (TT) reported 37% organic bookings growth and a record $12.1B backlog in Q2 2026, driven by sustained HVAC demand and energy-efficient solutions. Free cash flow nearly doubled to $1.6B, supporting shareholder returns and strategic investments.

However, the company faces headwinds from input-cost inflation and rising operating expenses, with adjusted operating margin contracting 60 basis points year-over-year despite revenue growth. TT currently holds a Zacks Rank #3 (Hold) rating.

The article explains the Zacks Earnings ESP (Expected Surprise Prediction) tool, which identifies stocks likely to beat earnings estimates by analyzing recent analyst revisions. It highlights that combining a Zacks Rank #3 or better with positive ESP has historically produced 28.3% annual returns. Trane Technologies is featured as an example stock meeting ESP qualifications with a +0.18% ESP figure ahead of its October 29, 2026 earnings release.