GET DAILY SIGNALSAMETEK (AME) Delivers Record Q3 with 17% Sales Growth and Raised 2026 Guidance
Key Takeaways
- AMETEK reported record third-quarter sales of $2.22 billion, up 17% year over year and above Wall Street consensus estimates of roughly $2.16 billion.
- Adjusted earnings per share (EPS) reached a record $2.21, up 17% and above the company's own guidance range of $2.08 to $2.10.
- Total orders surged 35% to $2.65 billion, while backlog climbed to a record $4.54 billion, signaling continued demand momentum.
- The company raised its full-year 2026 adjusted EPS guidance to $8.53 to $8.57, up from its prior range of $8.20 to $8.30.
- Free cash flow hit a record $527 million, with conversion of 124% of net income, underscoring the quality of earnings.
- The acquisition of Indicor Instrumentation closed during the quarter and is expected to add approximately $0.08 to full-year EPS.
Why These Results Matter for Investors
AME is a global provider of industrial technology solutions serving diversified niche markets. Its quarterly earnings provide a useful read on industrial demand, capital spending, and secular trends such as semiconductor investment, aerospace, defense, and power infrastructure. The company entered the quarter with strong momentum, having posted double-digit organic growth in prior periods and completing its acquisition of Indicor Instrumentation in August. With an S&P 500 listing and a market capitalization above $55 billion, AMETEK's results are closely watched as a bellwether for specialized industrial and electromechanical markets. The record figures reinforce confidence in the company's execution and disciplined acquisition strategy. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Reported Results
For the third quarter ended September 30, 2026, AMETEK reported record sales of $2.22 billion, up 17% from $1.89 billion a year earlier. Organic sales rose 10%, while acquisitions contributed seven percentage points of growth. Adjusted diluted EPS reached $2.21, up 17% year over year and above both the company's guidance range and analyst consensus estimates near $2.11.
Operating income rose 20% to a record $595 million, with operating margins of 26.8%, up 60 basis points. Core margins expanded 110 basis points to 27.3%. EBITDA reached a record $704 million. Orders climbed 35% to $2.65 billion, with organic orders up 17%, and backlog ended the quarter at a record $4.54 billion.
By segment, the Electronic Instruments Group (EIG) posted record sales of $1.44 billion, up 16%, while the Electromechanical Group (EMG) reported record sales of $778 million, up 20%. Management also raised full-year 2026 adjusted EPS guidance to $8.53 to $8.57, up approximately 15% year over year.
Market Reaction and Investor Sentiment
AMETEK shares were little changed immediately following the report, trading near $243.67 in the early session, even as the company delivered broad-based beats and raised guidance. Pre-market trading showed the stock modestly higher, reflecting a generally constructive but measured reaction. The combination of record orders, a record backlog, and an upward revision to full-year guidance provided a supportive backdrop for investor sentiment, while the increased interest expense tied to the Indicor acquisition and a slightly higher effective tax rate were among the factors tempering immediate enthusiasm. Overall, the market's response suggests investors viewed the quarter as confirming the company's ability to sustain double-digit growth while integrating a significant acquisition.
Forward Outlook and Factors to Monitor
Looking ahead, AMETEK's guidance points to continued momentum. For the fourth quarter of 2026, the company expects overall sales to be up in the low 20% range, with adjusted earnings of $2.26 to $2.30 per share, up 12% to 14% year over year. For the full year, management now anticipates sales growth in the mid-teens and adjusted EPS of $8.53 to $8.57.
Several factors will be worth watching in the coming quarters. The integration of Indicor Instrumentation remains a key catalyst, with management citing early progress and confidence in value creation. Order trends and backlog conversion will indicate whether the current demand strength across process, aerospace, defense, semiconductor, and power markets is sustainable. Investors should also monitor margin performance, as core margin expansion of 110 basis points this quarter reflected productivity gains and a favorable price-cost spread. Rising interest expense from acquisition-related borrowing and any shifts in the effective tax rate could influence profitability. Free cash flow conversion, now guided to 115% to 120% of net income for the year, will remain an important gauge of earnings quality and the company's capacity for future capital deployment. From what I see, these elements together paint a picture of steady execution.
AI Tools in My Research Process
In my analysis, I often turn to Tickeron’s AI Screener to quickly filter through industrial stocks and compare performance metrics. It helps me spot trends and validate ideas efficiently before diving deeper into earnings reports or guidance updates. This approach keeps my research focused without replacing core fundamental work.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
AME in upward trend: price may ascend as a result of having broken its lower Bollinger Band on October 22, 2026
AME may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 23 of 37 cases where AME's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 62%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The 10-day moving average for AME crossed bullishly above the 50-day moving average on September 29, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 50%.
Following a +2.26% 3-day Advance, the price is estimated to grow further. Considering data from situations where AME advanced for three days, in 162 of 330 cases, the price rose further within the following month. The odds of a continued upward trend are 49%.
The Aroon Indicator entered an Uptrend today. In 148 of 284 cases where AME Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 52%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 23 of 63 cases where AME's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 37%.
The Momentum Indicator moved below the 0 level on October 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on AME as a result. In 36 of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 40%.
The Moving Average Convergence Divergence Histogram (MACD) for AME turned negative on October 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 18 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 39%.
AME moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AME declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 45%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 11 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 32 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 49 (best 1 - 100 worst), indicating steady price growth. AME’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 58 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 84 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.925) is normal, around the industry mean (4.069). P/E Ratio (35.264) is within average values for comparable stocks, (37.908). Projected Growth (PEG Ratio) (2.859) is also within normal values, averaging (1.879). Dividend Yield (0.006) settles around the average of (0.031) among similar stocks. P/S Ratio (6.803) is also within normal values, averaging (186.943).
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General Information
a manufacturer of electronic instruments and electromechanical devices
Industry IndustrialMachinery
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