Why Is AMENTUM HLDGS INC EQ (AMTM) Stock Down Today?

Why AMTM stock is down today

Amentum Holdings Inc (AMTM) fell 8.22% to $22.43 in early trading on Monday, marking one of the day's largest declines. The drop followed a mixed earnings report that highlighted both strong profitability and cash generation, alongside a revenue miss and downward revisions to guidance for fiscal 2026. The stock also faced pressure after Morgan Stanley lowered its price target from $30 to $24.

What Happened

Amentum reported third-quarter fiscal 2026 revenue of $3.5 billion, a 1.7% decline from the same period a year ago and below the $3.86 billion estimate. While the company raised its full-year adjusted EBITDA forecast, it also reduced its FY26 revenue outlook to $13.8 billion to $13.95 billion, below the $14.14 billion estimate. The firm also updated its FY26 adjusted EPS guidance to a range of $2.40 to $2.50, slightly below the $2.42 estimate. The company attributed a 3% revenue impact in FY27 to NASA-related factors.

Morgan Stanley cut its price target for AMTM to $24 from $30, signaling a bearish shift in its outlook. The stock's decline also came amid a broader market environment where the S&P 500 approached record levels and investors weighed the likelihood of a Federal Reserve rate hike before the next CPI report.

What The Data Shows

The stock is trading within its 52-week range of $19.80 to $38.11, with a market cap of $5.8 billion. It has a P/E ratio of 41.3 and trailing twelve-month revenue growth of 26.1%. The stock’s net margin remains at 1.0%, and the recent drop brought volume to levels significantly above its 20-day average. No unusual options activity or insider transactions were reported in the last 90 days.

What To Watch

Amentum’s updated guidance and the revised price target from Morgan Stanley will be closely followed by investors. The company’s ability to meet its new revenue and EPS targets in the remainder of the fiscal year will be key to the stock’s near-term direction.