Norwalk, Conn. – October 27, 2026 -- Second-quarter 2026 revenue rose 22.0 percent to $1.92 billion, while adjusted operating margin widened 690 basis points to 10.6 percent. A $105 million pre-tax benefit from recognizing IEEPA tariff receivables contributed to the profit figures.
Reported revenue growth contrasts with a 6.5 percent pro forma decline
Revenue grew 21.2 percent in constant currency. On a pro forma basis, revenue fell 6.5 percent, so the headline increase is not matched by the like-for-like comparison.
Adjusted operating income rises $144 million to $203 million
GAAP net income reached $13 million, or $0.07 per share. That is up $119 million, or $0.94 per share, year-over-year.
Adjusted net income came in at $55 million, or $0.38 per share, up $132 million, or $1.02 per share.
Tariff receivable benefit boosts profitability but not cash flow
The $105 million pre-tax benefit is included in Q2 2026 profitability metrics. It is excluded from both operating cash flow and free cash flow because the sale of the receivables is currently accounted for within financing cash flow.
Operating cash flow was $37 million, up $48 million year-over-year. Free cash flow was $11 million, up $41 million.