Eastman misses Q3 profit and revenue estimates, sets 2026 EPS range

Eastman Chemical Company (EMN) missed third-quarter profit and revenue estimates, a regulatory filing showed on Oct. 29, 2026. The company also set a full-year 2026 adjusted earnings forecast of $6.00 to $6.20 per share.

Adjusted earnings per diluted share were $1.84, below the $1.94 consensus estimate compiled by Finnhub. Revenue was $2.385 billion, below the $2.44 billion estimate.

Eastman, founded in 1920, is a global specialty materials company with about 13,000 employees. It had 2025 revenue of about $8.8 billion, the release said.

Here's how the company did:

• Adjusted EPS: $1.84 vs. $1.14 a year earlier; $1.94 expected, according to Finnhub
• GAAP diluted EPS: $2.19 vs. 60 cents a year earlier
• Revenue: $2.385 billion vs. $2.202 billion a year earlier; $2.44 billion expected, according to Finnhub
• Adjusted EBIT: $305 million vs. $210 million a year earlier

Sales rose 8% from a year earlier, the company said, driven by 7% higher selling prices and 1% higher sales volume and mix. Higher prices were mainly driven by higher raw material and distribution costs and tight market conditions in Chemical Intermediates due to the conflict in the Middle East.

Adjusted EBIT rose mainly because of improved asset utilization after actions to reduce inventory in the third quarter of 2025, the company said. Lower planned maintenance expense and favorable price-cost also helped, partly offset by higher variable compensation expense.

“Eastman delivered solid results amid ongoing global macroeconomic uncertainty and escalation of the Middle East conflict,” said Board Chair and CEO Mark Costa.

Costa also said sequential sales volume and mix decreased because of seasonal declines across key end markets and softening underlying demand in automotive and consumer durables.

The company also announced the reinstatement of a $375 million U.S. Department of Energy award that supports the continued scale-up of its circular platform.

Segment results

Advanced Materials sales rose 5% to $762 million. Its adjusted EBIT was $103 million, up from $53 million a year earlier.

Additives & Functional Products sales rose 9% to $784 million. Its adjusted EBIT was $154 million, compared with $128 million a year earlier.

Chemical Intermediates sales rose 16% to $580 million. Its EBIT was $35 million, up from $1 million, which the company attributed primarily to higher spreads.

Fibers sales were unchanged at $255 million. Its EBIT fell to $52 million from $67 million, due to lower acetate tow contract pricing and higher raw material and distribution costs.

2026 outlook

“We expect to deliver a solid full-year performance in both earnings and cash flow, despite a challenging macroeconomic environment and the escalation of the Middle East conflict,” Costa said.

The company projects adjusted earnings per share of $6.00 to $6.20 for full-year 2026 and operating cash flow of approximately $850 million. It expects higher planned shutdown costs in the fourth quarter and is taking additional price actions across the company.

The company will host a conference call with industry analysts on Oct. 30, 2026, at 8:00 a.m. Eastern Time.

Cash and dividends

Operating cash flow was $290 million in the quarter, down from $402 million a year earlier. It was $377 million for the first nine months. The company returned $96 million to stockholders through dividends.

Net income rose in each of the last three quarters, from $47.0 million in the third quarter of 2025 to $183.0 million in the second quarter of 2026, according to its SEC filings.