Earnings Analysis November 3, 2026

Ametek Inc ($AME) Q3 2026 Earnings Analysis: Beat Expectations · Annual Guidance Raised

Earnings Report

Revenue: $2.2203 billion (Year-over-year +17.3%, Expected $2.127 billion) ✅ Beat

EPS (Earnings Per Share): Adjusted $2.21, GAAP $1.85 (Expected $2.11) ✅ Beat

Guidance: Raised 2026 adjusted EPS to $8.53–$8.57 (previously $8.20–$8.30); newly provided Q4 revenue growth in the low 20% range year-over-year and adjusted EPS of $2.26–$2.30

Stock Reaction: +4.58% in regular session ($252.98, as of 01:10 on 11-04 KST)

Highlights

17% Revenue Growth: Q3 revenue reached a quarterly record of $2.2203 billion

17% Increase in Adjusted EPS: $2.21 exceeded the expected $2.11

Operating Margin Improvement: 26.8% on an adjusted basis, up 0.6 percentage points from a year ago

Both the Electronic Instruments Group (EIG) and Electrical Machinery Group (EMG) achieved double-digit revenue growth. This was driven by a combination of contributions from recent acquisitions and organic growth, with operating income growth outpacing revenue growth, leading to margin expansion. Operating cash flow also increased to $560.6 million, resulting in a net income to free cash flow conversion rate of 124%.

Lowlights

Surge in Interest Expense: $39.82 million in Q3, a 77% increase from a year ago

Gap between GAAP and Adjusted figures: EPS varies between $1.85 and $2.21

Increased Debt Burden: Long-term debt stands at $6.03 billion, more than five times the amount at the end of last year

The financial structure has become heavier due to borrowing for acquisition funds. As goodwill has also swelled to $10.21 billion, the key factor moving forward will be how much the acquired businesses contribute to actual profits.

What the Company Said

CEO David A. Zapico explained that this quarter was driven by strong organic revenue and order growth, contributions from recent acquisitions, and outstanding operational performance. The company raised its annual outlook, provided a new outlook for the fourth quarter, and reflected the contribution of the acquired Indicor Instrumentation in the new guidance.

Market Reaction and Future Key Points

As earnings that exceeded expectations and an upward revision of annual guidance were released on the same day, the stock price also reacted to the upside.

It is necessary to confirm whether the adjusted earnings per share for the fourth quarter falls within the $2.26–$2.30 range.

The key factor is the extent of organic growth, excluding acquisition effects, in the electronic equipment and electrical machinery segments.

It is important to monitor how much the increased long-term debt and interest expenses will weigh on fourth-quarter net income.

Earnings Call Summary

Once the company script is released following the earnings call, the key takeaways from the call will be added to this section. We will select and summarize only the most important points, such as how management explained the results and guidance and what questions analysts asked.