Pentair PLC (PNR) shares plummeted 5.19% in pre-market trading on Tuesday following the release of its second-quarter earnings report. Despite beating earnings estimates, the company's stock faced significant downward pressure due to concerns about its future outlook.

The water treatment company reported adjusted earnings of $1.39 per share for the second quarter, surpassing the analyst consensus estimate of $1.33 by 4.35%. This represents a 13.93% increase from the $1.22 per share reported in the same period last year. Pentair's quarterly sales also showed modest growth, reaching $1.123 billion, slightly above the analyst expectations of $1.117 billion and marking a 2.18% increase from the previous year's $1.099 billion.

However, the positive earnings surprise was overshadowed by the company's updated guidance for the full year 2025. Pentair now expects adjusted earnings per share in the range of $4.75 to $4.85, compared to its previous outlook of $4.65 to $4.80. While this represents an increase in the lower end of the guidance, it appears that investors were expecting a more substantial upward revision given the strong Q2 performance. Additionally, the company's projection for full-year sales growth of approximately 1% to 2% may have fallen short of market expectations, contributing to the sharp decline in stock price.