Industrial Technology & Distribution: Q1 Earnings Takeaways: Organic Sales Growth Accelerates to Double Digits in '26E

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Industrial Technology & Distribution: Q1 Earnings Takeaways: Organic Sales Growth Accelerates to Double Digits in '26E

Equity Research

29 May 2026

Industrial Technology & Distribution

Q1 Earnings Takeaways: Organic

Sales Growth Accelerates to

U.S. Industrial Technology & DistributionDouble Digits in '26E

POSITIVE

Short cycle growth accelerates, driving Industrial Tech OSG to Unchanged

+10%, but valuations imply the shortest recovery in a U.S. Industrial Technology & Distributors

generation. End-markets CAPEX revisions continue +14% Guy Hardwick

(vs. +10%) in '26; We favor APH, CGNX, TEL, ZBRA & MANH, +1guy.hardwick@barclays.com212 526 2120

BCI, USand we downgrade ST to EW.

Nick Igneri

We appreciate your 5-star vote in the 2026 Extel All-America Research Survey in both the +1 212 526 1632

nicholas.igneri@barclays.comElectrical Equipment & Multi-Industry category and the IT Hardware & Electronics

BCI, US

Manufacturing Services category. View our analysts » Vote 5 Stars for Barclays »

We now expect our Industrial Tech coverage '26e avg. organic sales growth (OSG)

of +10% (April est. +7%), driven by end market CAPEX growth +14% (3mths ago +10%), the

strongest growth since 2021, led by semiconductor, A&D and continuing strength in supply

chain & Logistics. Our Industrial Tech & Distributor coverage beat Q1 cons. EPS by +13% (Q4

+2% EPS beat). Distributors beat EPS expectations by 14% on average, while Industrial Tech

names beat by 13% (ex-SYM) on average. Surprisingly to us sector valuation is still near

cyclical troughs, implying the Industrial Tech recovery will be very short lived, which we do

not believe. We see this as an attractive entry point for the sector.

Overall, we retain a Positive view of Industrial Technology & Distributors with a bias towards