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AMETEK's Q3 adjusted EPS rose 17% to $2.21, beating estimates by 4.25%.
Organic sales grew 10%, orders surged 35% to $2.65 billion, and backlog reached a record $4.54 billion.
AMETEK raised 2026 adjusted EPS guidance to $8.53-$8.57, targeting approximately 15% YOY growth.
AMETEK, Inc. (AME - Free Report) posted better-than-expected third-quarter 2026 results, supported by broad-based organic demand, acquisition contributions and productivity gains.
AME’s adjusted earnings of $2.21 per share beat the Zacks Consensus Estimate by 4.25% and rose 17% year over year.
AMETEK’s revenues of $2.22 billion surpassed the consensus estimate by 2.62% and increased 17% from $1.89 billion a year ago.
The company’s orders jumped 35% to $2.65 billion, while backlog reached a record $4.54 billion, underscoring healthy demand across the company's end markets.
AME's Organic Sales and Orders Reflect Broad Demand
AME’s organic sales advanced 10% in the quarter, while acquisitions added 7 percentage points to revenue growth. Organic orders increased 17%, and the backlog grew 27% from the beginning of the year. Management said September was a record month for orders and that October began on plan.
The company expects roughly 80% of its backlog to be shippable within the next 12 months. Geographically, U.S. sales rose in the low double digits, and Asia grew in the mid-20% range. Europe declined slightly amid difficult comparisons and timing issues. Aerospace and Defense organic sales grew in the mid-teens, while Power advanced at a mid-single-digit rate. Semiconductor orders increased more than 30%.
AMETEK's EIG Benefits From Diverse End Markets
Electronic Instruments Group (EIG) revenues climbed 16% year over year to $1.44 billion, representing nearly 65% of company sales. Organic sales increased 9%, while acquisitions contributed 7 percentage points. Process instrumentation, semiconductor, aerospace and power businesses supported the segment's performance. Management cited project activity in process instrumentation and continued investment in grid infrastructure.
Adjusted EIG operating income grew 15% to $414.6 million. Core operating margin expanded 60 basis points to 29.5%, supported by productivity and favorable pricing. Total orders rose 37%, including 17% organic order growth.
AME's EMG Sees Strong Sales and Margin Expansion
Electromechanical Group (EMG) sales rose 20% to $778 million, supported by 13% organic growth and approximately 7 percentage points from acquisitions. Demand was broad-based across aerospace, defense, medical technology and automation businesses.
Adjusted EMG operating income climbed 29% to $212 million. Core operating margin expanded 210 basis points to 27.5%, reflecting productivity improvements and pricing above inflation. Total orders advanced 31%, including 17% organic growth. Management highlighted particularly strong semiconductor and medical demand within Automation and Engineered Solutions. Paragon Medical delivered low-double-digit sales growth, supported by new product wins in surgical instruments and implantable components.
AMETEK's Operating Margins Benefit From Execution
Adjusted operating income increased 20% year over year to $594.7 million. The adjusted operating margin widened 60 basis points to 26.8%, while core operating margin expanded 110 basis points to 27.3%, excluding the dilutive effects of recent acquisitions and foreign exchange.
On a GAAP basis, operating income totaled $584.9 million, with earnings of $1.85 per share. The adjusted earnings measure excludes acquisition-related amortization and transaction and integration costs. GAAP gross margin was 36.5%, while general and administrative expenses declined to 1.4% of sales from 1.5%. Interest expense rose to about $40 million from $23 million due to acquisition-related borrowings. Management indicated quarterly inflation was about 3%, with pricing increases exceeding that level.
AME's Cash Generation Supports Capital Deployment
Operating cash flow increased 27% year over year to $560.6 million. Capital expenditures were $33.2 million, leaving free cash flow of $527.4 million, up 26%. Free cash flow conversion reached 124% of net income compared with 113% a year earlier. Operating working capital improved 160 basis points to 17.3% of sales.
As of Sept. 30, 2026, cash and equivalents were $666.2 million compared with $458 million at 2025-end. The August acquisition of Indicor Instrumentation involved $5 billion in capital deployed, with the acquired businesses generating approximately $1.1 billion in annual sales. Total debt increased to $6.67 billion from $2.28 billion, reflecting the transaction. Net debt to EBITDA stood at 2.1 times, while cash and available credit facilities totaled $2.7 billion.
AMETEK Raises Its 2026 Earnings Outlook
AMETEK now expects 2026 sales to increase by a mid-teens percentage, with organic sales rising at a high-single-digit rate. Adjusted earnings guidance increased to $8.53-$8.57 per share from $8.20-$8.30, indicating approximately 15% year-over-year growth. The forecast includes about 8 cents per share in expected contributions from Indicor.
For the fourth quarter of 2026, management expects sales growth in the low-20% range and adjusted earnings of $2.26-$2.30 per share, suggesting 12-14% growth year over year. AMETEK also raised its full-year free cash flow conversion expectation to 115-120% of net income. The company continues to budget roughly $160 million for capital expenditures in 2026
Zacks Rank & Other Stocks to Consider
AMETEK currently sports a Zacks Rank #1 (Strong Buy).
Advanced Energy Industries shares have gained 13.7% in the year-to-date period. The Zacks Consensus Estimate for Advanced Energy Industries’ 2026 earnings indicates a year-over-year increase of 75%. Estimates have remained unchanged for the past 30 days.
Shares of Telos have gained 1% year to date. The Zacks Consensus Estimate for Telos’ 2026 earnings suggests a year-over-year rise of 66.7%. Estimates have been revised downward in the past 30 days.
ASE Technology’s shares have surged 147.7% year to date. The Zacks Consensus Estimate for ASE Technology’s 2026 earnings indicates year-over-year growth of 129.8%. Estimates have been revised upward in the past seven days.
View the Zacks #1 Rank List
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AMETEK Q3 Earnings Beat Estimates on Organic Sales & Margin Gains
Key Takeaways
AMETEK, Inc. (AME - Free Report) posted better-than-expected third-quarter 2026 results, supported by broad-based organic demand, acquisition contributions and productivity gains.
AME’s adjusted earnings of $2.21 per share beat the Zacks Consensus Estimate by 4.25% and rose 17% year over year.
AMETEK’s revenues of $2.22 billion surpassed the consensus estimate by 2.62% and increased 17% from $1.89 billion a year ago.
The company’s orders jumped 35% to $2.65 billion, while backlog reached a record $4.54 billion, underscoring healthy demand across the company's end markets.
AMETEK, Inc. Price, Consensus and EPS Surprise
AMETEK, Inc. price-consensus-eps-surprise-chart | AMETEK, Inc. Quote
AME's Organic Sales and Orders Reflect Broad Demand
AME’s organic sales advanced 10% in the quarter, while acquisitions added 7 percentage points to revenue growth. Organic orders increased 17%, and the backlog grew 27% from the beginning of the year. Management said September was a record month for orders and that October began on plan.
The company expects roughly 80% of its backlog to be shippable within the next 12 months. Geographically, U.S. sales rose in the low double digits, and Asia grew in the mid-20% range. Europe declined slightly amid difficult comparisons and timing issues. Aerospace and Defense organic sales grew in the mid-teens, while Power advanced at a mid-single-digit rate. Semiconductor orders increased more than 30%.
AMETEK's EIG Benefits From Diverse End Markets
Electronic Instruments Group (EIG) revenues climbed 16% year over year to $1.44 billion, representing nearly 65% of company sales. Organic sales increased 9%, while acquisitions contributed 7 percentage points. Process instrumentation, semiconductor, aerospace and power businesses supported the segment's performance. Management cited project activity in process instrumentation and continued investment in grid infrastructure.
Adjusted EIG operating income grew 15% to $414.6 million. Core operating margin expanded 60 basis points to 29.5%, supported by productivity and favorable pricing. Total orders rose 37%, including 17% organic order growth.
AME's EMG Sees Strong Sales and Margin Expansion
Electromechanical Group (EMG) sales rose 20% to $778 million, supported by 13% organic growth and approximately 7 percentage points from acquisitions. Demand was broad-based across aerospace, defense, medical technology and automation businesses.
Adjusted EMG operating income climbed 29% to $212 million. Core operating margin expanded 210 basis points to 27.5%, reflecting productivity improvements and pricing above inflation. Total orders advanced 31%, including 17% organic growth. Management highlighted particularly strong semiconductor and medical demand within Automation and Engineered Solutions. Paragon Medical delivered low-double-digit sales growth, supported by new product wins in surgical instruments and implantable components.
AMETEK's Operating Margins Benefit From Execution
Adjusted operating income increased 20% year over year to $594.7 million. The adjusted operating margin widened 60 basis points to 26.8%, while core operating margin expanded 110 basis points to 27.3%, excluding the dilutive effects of recent acquisitions and foreign exchange.
On a GAAP basis, operating income totaled $584.9 million, with earnings of $1.85 per share. The adjusted earnings measure excludes acquisition-related amortization and transaction and integration costs. GAAP gross margin was 36.5%, while general and administrative expenses declined to 1.4% of sales from 1.5%. Interest expense rose to about $40 million from $23 million due to acquisition-related borrowings. Management indicated quarterly inflation was about 3%, with pricing increases exceeding that level.
AME's Cash Generation Supports Capital Deployment
Operating cash flow increased 27% year over year to $560.6 million. Capital expenditures were $33.2 million, leaving free cash flow of $527.4 million, up 26%. Free cash flow conversion reached 124% of net income compared with 113% a year earlier. Operating working capital improved 160 basis points to 17.3% of sales.
As of Sept. 30, 2026, cash and equivalents were $666.2 million compared with $458 million at 2025-end. The August acquisition of Indicor Instrumentation involved $5 billion in capital deployed, with the acquired businesses generating approximately $1.1 billion in annual sales. Total debt increased to $6.67 billion from $2.28 billion, reflecting the transaction. Net debt to EBITDA stood at 2.1 times, while cash and available credit facilities totaled $2.7 billion.
AMETEK Raises Its 2026 Earnings Outlook
AMETEK now expects 2026 sales to increase by a mid-teens percentage, with organic sales rising at a high-single-digit rate. Adjusted earnings guidance increased to $8.53-$8.57 per share from $8.20-$8.30, indicating approximately 15% year-over-year growth. The forecast includes about 8 cents per share in expected contributions from Indicor.
For the fourth quarter of 2026, management expects sales growth in the low-20% range and adjusted earnings of $2.26-$2.30 per share, suggesting 12-14% growth year over year. AMETEK also raised its full-year free cash flow conversion expectation to 115-120% of net income. The company continues to budget roughly $160 million for capital expenditures in 2026
Zacks Rank & Other Stocks to Consider
AMETEK currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector include Advanced Energy Industries (AEIS - Free Report) , Telos (TLS - Free Report) and ASE Technology (ASX - Free Report) . Advanced Energy Industries, Telos and ASE Technology sport a Zacks Rank #1 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Energy Industries shares have gained 13.7% in the year-to-date period. The Zacks Consensus Estimate for Advanced Energy Industries’ 2026 earnings indicates a year-over-year increase of 75%. Estimates have remained unchanged for the past 30 days.
Shares of Telos have gained 1% year to date. The Zacks Consensus Estimate for Telos’ 2026 earnings suggests a year-over-year rise of 66.7%. Estimates have been revised downward in the past 30 days.
ASE Technology’s shares have surged 147.7% year to date. The Zacks Consensus Estimate for ASE Technology’s 2026 earnings indicates year-over-year growth of 129.8%. Estimates have been revised upward in the past seven days.