With a market cap of $62.1 billion, Air Products and Chemicals, Inc. (APD) is a global leader in providing industrial gases, process and specialty gases, and related equipment and services. Its operations span industrial gases for multiple industries and the design and manufacture of equipment for air separation, natural gas liquefaction, and cryogenic storage.

Shares of the Allentown, Pennsylvania-based company have underperformed the broader market over the past 52 weeks. APD has risen 8.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 12.5%. In addition, APD stock has dipped 3.8% on a YTD basis, compared to SPX's 1.3% gain.

However, the industrial gases giant has outperformed the Materials Select Sector SPDR Fund's (XLB) 4.7% decline over the past 52 weeks.

Despite reporting weaker-than-expected Q2 2025 adjusted EPS of $2.69 and revenue of $2.9 billion, shares of APD rose marginally on May 1. Notably, strength in the Europe segment, with revenues up 8.9% year-over-year to $727.4 million, and positive pricing trends helped offset volume and cost pressures. Additionally, the reaffirmed full-year EPS guidance of $11.85 - $12.15 and robust capital expenditure plans of roughly $5 billion for fiscal 2025 likely signaled confidence.

For the fiscal year ending in September 2025, analysts expect APD's adjusted EPS to decline 3.3% year-over-year to $12.02. The company's earnings surprise history is mixed. It beat or met the consensus estimates in three of the last four quarters while missing on another occasion. 

Among the 22 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, eight “Holds,” and one “Moderate Sell.”

On May 2, Alembic Global analyst Hassan Ahmed reiterated a “Buy” rating on Air Products and Chemicals and assigned a price target of $375.

As of writing, APD is trading below the mean price target of $319.70. The Street-high price target of $375 implies a modest potential upside of 34.4% from the current price levels.