Linde Raises 2026 Profit Forecast as Semiconductor Gas Demand Drives Quarterly Sales

Linde raised its full-year 2026 adjusted earnings outlook on October 29 after reporting higher third-quarter sales, supported by industrial demand and growth in gases used by semiconductor manufacturers.

The industrial gases group reported revenue of $9.404 billion for the three months, a 9% increase from a year earlier. Underlying sales rose 5%, with the company attributing three percentage points to pricing and two to higher volumes. Its electronics end market recorded 15% sales growth as chip manufacturers expanded capacity for artificial intelligence and high-performance computing.

Linde's reported net income was $1.692 billion, down 12% from the comparable period. Reported diluted earnings per share fell 11% to $3.66. The company's adjusted earnings measure, which excludes specified purchase-accounting and restructuring-related effects, rose 9% to $4.59 per diluted share. These are different accounting measures and should not be treated as interchangeable.

For the full year, management now expects adjusted earnings of $17.82 to $17.92 per diluted share, compared with its previous forecast of $17.70 to $17.90. The revised outlook assumes a favorable currency effect of approximately 2%. For the fourth quarter, Linde expects adjusted earnings per share between $4.40 and $4.50, which would represent growth of 5% to 7% from a year earlier.

Operating cash flow increased 8% to $3.169 billion. The company reported capital spending of $1.392 billion in the quarter and free cash flow of $1.777 billion. It plans to spend between $5.5 billion and $6.0 billion on capital projects during 2026. Its total project backlog was reported at $11 billion, a measure of planned work rather than revenue already earned.

Linde supplies industrial and medical gases across electronics, manufacturing, chemicals, energy and healthcare. Its semiconductor exposure has become more visible as chip producers invest in manufacturing capacity. The quarterly results show stronger sales and adjusted profitability, while the decline in reported net income highlights the importance of distinguishing underlying performance from accounting adjustments. Future demand and the company's forecasts remain subject to changes in industrial investment and currency markets.