Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTScott Levine, The Motley FoolFri, July 31, 2026 at 11:08 PM GMT+2 3 min readEnding both the week and the month on a bearish note, shares of Perimeter Solutions (NYSE: PRM) are plunging today after the company reported disappointing second-quarter 2026 financial results this morning before the market opened. While there were some bright spots in the company's report, it wasn't sufficient to light a fire under the bulls' feet.As of 3:48 p.m. ET, shares of the fire retardant maker are down 13.8%, paring back an earlier 20.2% drop.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Image source: Getty Images.The company's failure to meet analysts' expectations was too much for bears to bearComing up short of the $216.9 million in revenue that analysts had anticipated, Perimeter reported Q2 2026 sales of $213.8 million. Similarly, the bottom of the income statement provided another source of disappointment. Whereas analysts expected adjusted earnings per share (EPS) of $0.42, Perimeter reported adjusted EPS of $0.35.Despite the company's inability to meet analysts' expectations, Perimeter's earnings report included several bright spots. For one, the $213.8 million that Perimeter reported on the top line last quarter represented a 31% year-over-year increase. Plus, the company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $105.6 million, a 16% increase over the $91.3 million it reported during the same period last year.Should investors remain on the perimeter with Perimeter stock?The market may be punishing Perimeter stock today, but it seems to be an overreaction -- missing analysts' expectations, after all, isn't everything.While the company's not a defense stock in the traditional sense, it generates the majority of its revenue from the U.S. Air Force and Air National Guard. According to Perimeter, the majority of its revenue over the past 50 years has come from the business it has developed at more than 200 airbases. For conservative investors seeking a niche approach to defense, Perimeter stock warrants further investigation.Should you buy stock in Perimeter Solutions right now?Before you buy stock in Perimeter Solutions, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Perimeter Solutions wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info