Modular flooring manufacturer Interface (NASDAQ:TILE) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 5.4% year on year to $395.7 million. On the other hand, next quarter’s revenue guidance of $375 million was less impressive, coming in 0.7% below analysts’ estimates. Its non-GAAP profit of $0.88 per share was 37.6% above analysts’ consensus estimates.
Is now the time to buy Interface? Find out by accessing our full research report, it’s free.
Interface (TILE) Q2 CY2026 Highlights:
- Revenue: $395.7 million vs analyst estimates of $390.1 million (5.4% year-on-year growth, 1.4% beat)
- Adjusted EPS: $0.88 vs analyst estimates of $0.64 (37.6% beat)
- Adjusted EBITDA: $87.7 million vs analyst estimates of $67.41 million (22.2% margin, 30.1% beat)
- The company slightly lifted its revenue guidance for the full year to $1.47 billion at the midpoint from $1.47 billion
- Operating Margin: 18.9%, up from 13.9% in the same quarter last year
- Free Cash Flow Margin: 6.6%, similar to the same quarter last year
- Market Capitalization: $2.04 billion
Company Overview
Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ:TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
With $1.44 billion in revenue over the past 12 months, Interface is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it’s working from a smaller revenue base.
As you can see below, Interface’s 5.5% annualized revenue growth over the last five years was decent. This shows its offerings generated slightly more demand than the average business services company, a helpful starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Interface’s annualized revenue growth of 6.4% over the last two years aligns with its five-year trend, suggesting its demand was stable. 
This quarter, Interface reported year-on-year revenue growth of 5.4%, and its $395.7 million of revenue exceeded Wall Street’s estimates by 1.4%. Company management is currently guiding for a 2.9% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 3.6% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and suggests its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.
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Adjusted Operating Margin
Interface has done a decent job managing its cost base over the last five years. The company has produced an average adjusted operating margin of 11.2%, higher than the broader business services sector.
Looking at the trend in its profitability, Interface’s adjusted operating margin rose by 3 percentage points over the last five years, as its sales growth gave it operating leverage.
This quarter, Interface generated an adjusted operating margin profit margin of 18.9%, up 4 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Interface’s EPS grew at 18.6% compounded annual growth rate over the last five years, higher than its 5.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into Interface’s earnings quality to better understand the drivers of its performance. As we mentioned earlier, Interface’s adjusted operating margin expanded by 3 percentage points over the last five years. On top of that, its share count shrank by 1.3%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Interface, its two-year annual EPS growth of 34.1% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.
In Q2, Interface reported adjusted EPS of $0.88, up from $0.60 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. We also like to analyze expected EPS growth based on Wall Street analysts’ consensus projections, but there is insufficient data.
Key Takeaways from Interface’s Q2 Results
It was good to see Interface beat analysts’ EPS expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its revenue guidance for next quarter slightly missed. Overall, this print had some key positives. The stock traded up 4.9% to $36.81 immediately following the results.
Sure, Interface had a solid quarter, but if we look at the bigger picture, is this stock a buy? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).