Filing Flows › Gates Industrial (GTES) › Q3 2026 › vs Q2 2026
Gates Industrial (GTES) Q3 2026 vs Q2 2026 (quarter over quarter)
Gates Industrial's revenue fell $38.0M (-4%) from $942M in Q2 2026 to $904M in Q3 2026. The biggest changes: Power Transmission −$28.4M (-5%); Fluid Power −$9.6M (-3%). Gross margin 42.4% against 41.0% (+1.4 pts).
Gates Industrial, Q3 2026: revenue $904M (+6% year over year), operating margin 14.5%, net earnings $86.5M, operating cash flow $61.2M. The chart draws each line against Q2 2026, the increases inside each band.
Margins
| Q3 2026 | Q2 2026 | Change | |
|---|---|---|---|
| Gross margin | 42.4% | 41.0% | +1.4 pts |
| Operating margin | 14.5% | 14.0% | +0.6 pts |
| Net margin | 9.6% | 18.1% | -8.6 pts |
| Free cash flow margin | 4.7% | 6.4% | -1.7 pts |
Every line
| Line | Q3 2026 | Q2 2026 | Change | % |
|---|---|---|---|---|
| Power Transmission | $560M | $588M | −$28.4M | -5% |
| Fluid Power | $344M | $353M | −$9.6M | -3% |
| Revenue | $904M | $942M | −$38.0M | -4% |
| Gross profit | $383M | $386M | −$2.8M | -0.7% |
| Cost of revenue | $520M | $556M | −$35.2M | -6% |
| Operating profit | $131M | $132M | −$300K | -0.2% |
| Operating expenses | $252M | $254M | −$2.5M | -1% |
| Pre-tax earnings | $108M | $100M | $8.1M | +8% |
| Other expense, net | $23.0M | $31.4M | −$8.4M | -27% |
| SG&A | $247M | $251M | −$3.3M | -1% |
| Other operating costs | $4.6M | $3.8M | $800K | +21% |
| Net earnings | $86.5M | $171M | −$84.4M | -49% |
| Minority interests | $4.9M | $7.1M | −$2.2M | -31% |
| Income tax | $16.7M | −$78.0M | $94.7M | — |
| Operating cash sources | $152M | $237M | −$85.9M | -36% |
| Depreciation & amortization | $56.4M | $57.1M | −$700K | -1% |
| Share-based compensation | $8.6M | $9.4M | −$800K | -9% |
| Working capital & other | $90.3M | $159M | −$68.5M | -43% |
| Operating cash flow | $61.2M | $78.6M | −$17.4M | -22% |
| Free cash flow (OCF − capex) | $42.4M | $60.3M | −$17.9M | -30% |
| Capital expenditures | $18.8M | $18.3M | $500K | +3% |
Questions
How much did Gates Industrial's revenue grow quarter over quarter in Q3 2026?
Gates Industrial's revenue fell $38.0M (-4%) from $942M in Q2 2026 to $904M in Q3 2026.
What drove Gates Industrial's revenue change in Q3 2026?
Power Transmission −$28.4M (-5%); Fluid Power −$9.6M (-3%).