Electronic products manufacturer AMETEK (NYSE: AME) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 15% year on year to $2.04 billion. Its non-GAAP profit of $2.09 per share was 4.8% above analysts’ consensus estimates.
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AMETEK (AME) Q2 CY2026 Highlights:
- Revenue: $2.04 billion vs analyst estimates of $1.96 billion (15% year-on-year growth, 4.4% beat)
- Adjusted EPS: $2.09 vs analyst estimates of $1.99 (4.8% beat)
- Management raised its full-year Adjusted EPS guidance to $8.25 at the midpoint, a 2.6% increase
- Operating Margin: 25.8%, in line with the same quarter last year
- Free Cash Flow Margin: 22.1%, up from 18.5% in the same quarter last year
- Market Capitalization: $55.87 billion
"AMETEK delivered superb results in the second quarter. Strong organic sales growth, contributions from recent acquisitions, and outstanding operating performance led to high-teens earnings growth, excellent 110 basis points of core margin expansion and record operating performance," stated David A. Zapico, AMETEK Chairman and Chief Executive Officer.
Company Overview
Started from its humble beginnings in motor repair, AMETEK (NYSE: AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.
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. Over the last five years, AMETEK grew its sales at a solid 9.8% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers, a helpful starting point for our analysis.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. AMETEK’s recent performance shows its demand has slowed as its annualized revenue growth of 7.3% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
This quarter, AMETEK reported year-on-year revenue growth of 15%, and its $2.04 billion of revenue exceeded Wall Street’s estimates by 4.4%.
Looking ahead, sell-side analysts expect revenue to grow 5.8% over the next 12 months, a slight deceleration versus the last two years. This projection doesn’t excite us and indicates its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.
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Operating Margin
AMETEK has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 25.4%. This result isn’t too surprising as its gross margin gives it a favorable starting point.
Looking at the trend in its profitability, AMETEK’s operating margin rose by 2 percentage points over the last five years, as its sales growth gave it operating leverage.
This quarter, AMETEK generated an operating margin profit margin of 25.8%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.
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.
AMETEK’s EPS grew at 13.1% compounded annual growth rate over the last five years, higher than its 9.8% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
Diving into the nuances of AMETEK’s earnings can give us a better understanding of its performance. As we mentioned earlier, AMETEK’s operating margin was flat this quarter but expanded by 2 percentage points over the last five years. On top of that, its share count shrank by 1.3%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For AMETEK, its two-year annual EPS growth of 9.7% was lower than its five-year trend. This wasn’t great, but at least the company was successful in other measures of financial health.
In Q2, AMETEK reported adjusted EPS of $2.09, up from $1.78 in the same quarter last year. This print beat analysts’ estimates by 4.8%. Over the next 12 months, Wall Street expects AMETEK’s full-year EPS to grow 6.3% from $7.96 to $8.46.
Key Takeaways from AMETEK’s Q2 Results
We were impressed by how significantly AMETEK blew past analysts’ revenue expectations this quarter. We were also glad its full-year EPS guidance slightly exceeded Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 3.2% to $251.50 immediately following the results.
Sure, AMETEK had a solid quarter, but if we look at the bigger picture, is this stock a buy? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
