Amentum (NYSE:AMTM) Misses Q2 CY2026 Revenue Estimates, Stock Drops 15.1%

Barchart·08/10/2026 16:02:13

Government engineering solutions provider Amentum Holdings (NYSE:AMTM) fell short of the market’s revenue expectations in Q2 CY2026, with sales falling 2% year on year to $3.49 billion. Its GAAP profit of $0.27 per share was 14.7% below analysts’ consensus estimates.

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Company Overview

With operations spanning approximately 80 countries and a workforce of specialized engineers and technical experts, Amentum Holdings (NYSE:AMTM) provides advanced engineering and technology solutions to U.S. government agencies, allied governments, and commercial enterprises across defense, energy, and space sectors.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $14.13 billion in revenue over the past 12 months, Amentum is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because it’s challenging to maintain high growth rates when you’ve already captured a large portion of the addressable market. To expand meaningfully, Amentum likely needs to tweak its prices, innovate with new offerings, or enter new markets.

As you can see below, Amentum’s 1.4% annualized revenue growth over the last four years was sluggish. This shows it failed to generate demand in any major way and is a rough starting point for our analysis.

Long-term growth is the most important, but within business services, a stretched historical view may miss new innovations or demand cycles. Amentum’s recent performance shows its demand has slowed as its revenue was flat over the last two years.

This quarter, Amentum missed Wall Street’s estimates and reported a rather uninspiring 2% year-on-year revenue decline, generating $3.49 billion of revenue.

Looking ahead, sell-side analysts expect revenue to grow 2.8% over the next 12 months. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average.

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Adjusted Operating Margin

Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes, and interest on debt - metrics less connected to business fundamentals.

Amentum was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 6.8% was weak for a business services business.

On the plus side, Amentum’s adjusted operating margin rose by 2.4 percentage points over the last five years, as its sales growth gave it operating leverage.

This quarter, Amentum generated an adjusted operating margin profit margin of 5.2%, down 2.3 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.

Amentum’s EPS grew at 11.9% compounded annual growth rate over the last four years, higher than its 1.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Amentum, its two-year annual EPS growth of 25.8% was higher than its four-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.

In Q2, Amentum reported EPS of $0.27, up from $0.04 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects Amentum’s full-year EPS to grow 82.5% from $0.83 to $1.52.

Key Takeaways from Amentum’s Q2 Results

We struggled to find many positives in these results. Its revenue missed and its EPS fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 15.1% to $20.90 immediately following the results.

The latest quarter from Amentum’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).

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