Lennox International (LII) Cuts EPS Guidance, Is It Still 17% Below Fair Value?

Lennox International (LII) recently reported second quarter 2026 results, with higher sales but slightly lower net income compared with a year earlier. The company also narrowed and reduced its full year earnings per share guidance.

See our latest analysis for Lennox International.

The Lennox International share price closed at US$446.74 on July 29, 2026, after the updated earnings guidance and buyback progress, with the stock down 21.63% over the past 30 days and the 1 year total shareholder return down 25.13%. Over longer horizons, total shareholder returns of 21.80% over three years and 39.77% over five years suggest earlier momentum has eased recently as investors reassess earnings expectations and risk.

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Lennox International shares have dropped hard on the trimmed earnings outlook and softer profit trend. After that reset, does the current valuation still offer enough upside potential to compensate for the risks you are taking on?

Most Popular Narrative: 17.2% Undervalued

The most widely followed narrative puts Lennox International’s fair value at $539.23 per share versus the recent $446.74 close, which frames the current sell off as a potential valuation gap rather than a fundamental reset.

Strategic partnerships with Samsung (mini splits/VRF with smart tech integration) and Ariston (heat pump water heaters) will expand Lennox's advanced, energy-efficient product offerings, enhancing its access to segments benefiting from regulatory and consumer demand for sustainability, with significant revenue growth expected from 2026 and 2027 onward.

Read the complete narrative.

Want to understand why this narrative supports a higher price tag for Lennox International? The story leans heavily on stronger margins, faster top line growth and a richer earnings multiple. Curious which of those levers carries the most weight in the fair value math.

Result: Fair Value of $539.23 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this Lennox International narrative still depends on healthy replacement demand and stable margins, which could be pressured if housing softness or refrigerant supply issues persist.

Find out about the key risks to this Lennox International narrative.

Next Steps

If the mixed messages around Lennox International leave you unsure, treat that as a prompt to review the data yourself and move quickly to form your own view with the help of 3 key rewards and 1 important warning sign

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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