The EPS miss is significant and likely to pressure the stock near-term, but the raised guidance midpoint and strong FCF generation provide a counterbalance. Watch the conference call for details on ATS project deferrals and the trajectory of segment margins in Q4 to gauge if the miss is a one-quarter issue or a trend.
Price Chart
Executive Summary
ABM reported fiscal Q3 2026 results with revenue of $2.317B (+4.2% YoY) and adjusted EPS of $1.04, which missed the consensus estimate of $1.25 by 16.8%. Despite the headline miss, the company raised the midpoint of its full-year adjusted EPS guidance to $3.95-$4.10 (from $3.85-$4.15) and increased its free cash flow outlook to ~$210M, driven by strong working capital management and deleveraging to 2.9x. The combination of a significant EPS miss and a lowered segment operating margin outlook tempers the positive guidance raise, creating a mixed picture for traders.
Key Financial Metrics
Key Facts
- Revenue grew 4.2% YoY to a quarterly record of $2.317B, with organic growth of 2.1% and acquisition growth of 2.1%.
- Adjusted EPS of $1.04 missed the consensus estimate of $1.25 by 16.8% ($0.21).
- GAAP net income rose 19% to $49.7M ($0.84/diluted share) from $41.8M ($0.67) in the prior year.
- Company raised the midpoint of FY2026 adjusted EPS guidance to $3.95-$4.10 (from $3.85-$4.15).
- Segment operating margin guidance was lowered to 7.7%-7.8% from the prior range of 7.8%-8.0%.
- Free cash flow for the first nine months was $199.6M, with FY2026 outlook raised to ~$210M.
- Leverage ratio improved to 2.9x from 3.2x at Q2 end; company secured a $300M trade receivables facility.
- Business & Industry revenue declined 2.6% YoY; Technical Solutions growth was below expectations due to project deferrals.
Financial Impact
Adjusted EPS miss of $0.21 (-16.8%) vs consensus; guidance midpoint raised by $0.025; FCF outlook raised by ~$25M.
Risk Factors
- Technical Solutions project deferrals could persist into Q4, weighing on revenue growth.
- Lowered segment operating margin guidance suggests ongoing cost pressures in Aviation and M&D.
- B&I segment revenue decline may signal structural headwinds from client exits and West Coast softness.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-384364 |
| Document: abm-20260908.htm | 0001193125-26-384364 |
| Document: 0001193125-26-384364-index-headers.html | 0001193125-26-384364 |
| Document: 0001193125-26-384364-index.html | 0001193125-26-384364 |
| Document: 0001193125-26-384364.txt | 0001193125-26-384364 |
| 8-K Data (Synthetic) | 0001193125-26-384364 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 13d ago | Press Release | $50.69 | awaiting T+20 | — | $54.04 (+6.61%) |
Sep 30, 2026 27d ago | Court Ruling | $48.46 | awaiting T+20 | — | $54.04 (+11.51%) |
Sep 8, 2026 6w ago | 8-K | $50.60 $48.40 | ▼ −4.35% | ▼ −6.31% | $54.04 (+6.80%) |
Aug 4, 2026 11w ago | Institutional Cluster | $49.18 $46.41 | ▼ −5.63% | ▼ −4.39% | $54.04 (+9.88%) |
Jul 17, 2026 14w ago | Insider Cluster | $47.23 $47.72 | ▲ +1.04% | ▼ −3.08% | $54.04 (+14.42%) |
Jun 14, 2026 19w ago | Institutional Cluster | $44.00 $45.36 | ▲ +3.09% | ▲ +3.84% | $54.04 (+22.82%) |
Jun 5, 2026 20w ago | 8-K | $42.54 $44.40 | ▲ +4.37% | ▲ +2.51% | $54.04 (+27.03%) |
Jun 5, 2026 20w ago | Press Release | $42.54 $44.40 | ▲ +4.37% | ▲ +2.51% | $54.04 (+27.03%) |
May 22, 2026 22w ago | Press Release | $40.19 | awaiting T+20 | — | $54.04 (+34.46%) |
Mar 30, 2026 30w ago | Court Ruling | $37.75 $39.28 | ▲ +4.05% | ▼ −5.37% | $54.04 (+43.14%) |
US Market Status
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