Bull of the Day: Flowserve (FLS)

Flowserve Corp. FLS is bullish about the power generation opportunities coming in 2026. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by the double digits in 2026.

Flowserve is a leading provider of fluid motion and control products and services.

The company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. It operates in more than 50 countries.

Flowserve Beats in the Fourth Quarter of 2025

On Feb 5, 2026, Flowserve reported its fourth quarter 2025 and full year results. It beat on the fourth quarter consensus by $0.17, reporting $1.11 versus the Zacks Consensus of $0.94.

It was the fourth earnings beat in a row.

Flowserve had fourth quarter bookings of $1.2 billion, up 2.9%, including 10.4% aftermarket growth to $682 million.

“With healthy end markets, a focus on expanding power generation opportunities, and the continued progress of the Flowserve Business System, we are confident in our 2026 guidance and updated long-term financial targets,” said CEO Scott Rowe.

Flowserve has been making strategic acquisitions to expand in the power generation category which is in the hot AI infrastructure area. 

Flowserve Guides Higher for 2026

Flowserve was bullish about 2026, as it guided higher than the Zacks Consensus.

As a result, 5 estimates have been revised higher for 2026 since the earnings report, with one even being revised higher in the last week. That has pushed the Zacks Consensus up to $4.11 from $3.93.

That’s earnings growth of 12.4% as the company only made $3.64 last year.

2027 is also looking bullish. One estimate has been revised in the last week, with 3 higher in the last month. The Zacks Consensus has jumped to $4.67 from $4.26.

That’s another 14.2% earnings growth.

Here’s what it looks like on the 5-year price, consensus and surprise chart.

Shares of Flowserve Trade Near 5-Year High

The AI infrastructure stocks, which include companies that are involved in the construction, cooling and power generation of data centers, have been hot.

Flowserve was trading at a new 5-year high but has pulled back in the last week of market volatility, falling 8%. It’s still up double digits year-to-date.

Flowserve is attractively priced. It’s trading with a forward price-to-earnings (P/E) ratio of 21. Given that other AI infrastructure stocks are trading in their 30s, it is a value. 

The company is shareholder friendly. On Feb 13, 2026, Flowserve announced its Board had voted to raise the quarterly dividend by 5% to $0.22. It is yielding about 1%.

For those looking for an AI infrastructure stock that is attractively valued and has double digit earnings growth, Flowserve should be on your short list.

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This article originally published on Zacks Investment Research (zacks.com).

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