AMETEK, Inc.

(New York Stock Exchange)
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Somewhat Bullish +50

AMETEK (NYSE:AME) Beats Q1 CY2026 Sales Expectations

AI-generated analysis

πŸ“ˆ AMETEK reported Q1 CY2026 revenue of $1.93 billion, beating Wall Street estimates of $1.92 billion by 0.6%.

πŸ“‰ Sales grew 11.3% year-on-year, though recent two-year growth has slowed below the company's five-year trend.

πŸ’° Non-GAAP profit was $1.97 per share, representing a 3.8% beat against analyst consensus estimates.

πŸ“Š Adjusted operating income reached $514.9 million with a margin of 26.7%, slightly above expectations.

🀡 Chairman David Zapico cited strong organic growth, acquisition contributions, and record EBITDA as key drivers.

🏭 The company manufactures electronic devices for aerospace, power, and healthcare industries with a history dating back to motor repair.

πŸ“ˆ Long-term sales CAGR over the last five years stood at 10.8%, exceeding the average for industrials companies.

⚠️ Revenue growth has decelerated in the recent two-year period, currently tracking lower than its five-year historical trend.

πŸ‘οΈ Management raised its full-year Adjusted EPS guidance to a midpoint of $8.04 during the earnings call.

πŸ”‹ Operating margin remained stable at 26.7% for the quarter, aligning with performance from the same period last year.

πŸ’‘ Over the past five years, operating margins expanded by 2.3 percentage points due to sales growth and operating leverage.

πŸ“‰ EPS grew at a compounded annual rate of 13.8% over the last five years, outpacing revenue growth per share.

πŸ“‰ Share count has decreased by 1.1%, indicating ongoing share buybacks that help turbocharge EPS growth.

βš–οΈ Two-year annualized EPS growth of 8.2% is lower than the long-term trend but reflects current business cycles.

🎯 The stock price rose 1.2% to $230.57 immediately following the positive earnings announcement and beat.

Bullish Signals
  • AMETEK reported revenue of $1.93 billion in Q1 CY2026, which exceeded Wall Street's expectations by $10 million and represented an 11.3% year-over-year growth.
  • The company's non-GAAP profit of $1.97 per share surpassed analysts' consensus estimates by 3.8%, demonstrating strong earnings performance.
  • Adjusted Operating Income reached $514.9 million, a 3.6% beat over analyst expectations, reflecting a robust operating margin of 26.7%.
  • Management raised its full-year Adjusted EPS guidance to $8.04 at the midpoint, signaling confidence in continued growth momentum.
  • AMETEK has achieved an impressive 10.8% compounded annual sales growth rate over the last five years, outperforming the average industrials company.
  • The stock traded up 1.2% to $230.57 immediately after reporting positive results, indicating strong investor sentiment and market reception.
  • Operating margins have expanded by 2.3 percentage points over the last five years due to operating leverage driven by sales growth.
  • Shares outstanding have shrunk by 1.1% over the same period, suggesting effective capital allocation through buybacks that turbocharges EPS growth.
Risk Factors
  • Management raised full-year Adjusted EPS guidance, but this comes after acknowledging that annualized revenue growth of 6.2% over the last two years is significantly below the five-year trend.
  • Analyst projections for the next 12 months forecast only 6.3% revenue growth, which mirrors the disappointing two-year rate and suggests newer products may fail to drive better top-line performance.
  • AMETEK's short-term momentum appears weak as its recent sales growth has slowed significantly compared to its impressive historical compounded annual growth rate of 10.8%.
  • Although EPS beat estimates by 3.8%, the company's operating margin has been flat at 26.7% for the current quarter, failing to show the continued expansion seen over the last five years.
Full Analysis
AME Technologies (AME) reported its first quarter of fiscal 2026 results, with revenue reaching $1.93 billion, representing an 11.3% year-over-year increase that exceeded the analyst consensus of $1.92 billion by $10 million. The company's non-GAAP earnings per share (EPS) came in at $1.97, surpassing estimates of $1.90 by 3.8%, while adjusted operating income was reported at $514.9 million against expectations of $496.8 million, reflecting a 26.7% operating margin that matched the previous year's performance. Management responded to the earnings release by slightly raising its full-year adjusted EPS guidance to $8.04 per share. In his statement, AMETEK Chairman and CEO David A. Zapico highlighted double-digit earnings growth driven by strong organic sales, contributions from recent acquisitions, and a robust 160 basis point expansion in core margins. The company, which manufactures electronic devices for industries including aerospace, power, and healthcare, has historically grown at a 10.8% compounded annual rate over the past five years, though more recent two-year growth has decelerated to an annualized rate of 6.2%. Following the report, the stock price increased by 1.2% to close at $230.57. While analysts project revenue growth of 6.3% over the next 12 months, similar to the recent two-year trend, the company continues to demonstrate elite profitability with an average five-year operating margin of 25.3% and has reduced its share count by 1.1% through buybacks, supporting EPS expansion.