The raised FY2026 guidance and accelerating aerospace demand suggest continued earnings growth. Monitor Q4 operating income guidance of $205-210M and any updates on long-term aerospace agreements. The stock may re-rate higher given the margin expansion trajectory.
Price Chart
Executive Summary
Carpenter Technology reported a record Q3 FY2026 with operating income of $186.5M (+35% YoY), EPS of $2.77 (+47% YoY) beating consensus of $2.64, and revenue of $811.5M (+12% YoY) slightly above estimates. The company raised its FY2026 operating income guidance to $700-705M (from $680-700M) and adjusted free cash flow outlook to ~$350M, signaling accelerating demand in aerospace and defense.
Key Financial Metrics
Key Facts
- Q3 FY2026 revenue $811.5M vs consensus $797.5M (beat by 1.8%)
- GAAP diluted EPS $2.77 vs consensus $2.64 (beat by 4.9%)
- Operating income $186.5M, up 35% YoY and 20% sequentially, a record
- SAO segment adjusted operating margin expanded to 35.6% (record)
- FY2026 operating income guidance raised to $700-705M (prior $680-700M)
- FY2026 adjusted free cash flow outlook raised to ~$350M (prior ≥$280M)
- Generated $193.5M cash from operations, $124.8M adjusted free cash flow
- Commercial aerospace structural bookings up sequentially
- Executed $52.7M in share repurchases during the quarter
Financial Impact
Record operating income and raised guidance indicate strong momentum; EPS beat of $0.13 (~5%) above consensus.
Risk Factors
- Execution risk on brownfield capacity expansion
- Raw material surcharge volatility could pressure margins
- Aerospace build rate disruptions (e.g., Boeing challenges)
- Cyclicality in end markets beyond aerospace
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000017843-26-000018 |
| Document: crs-20260429.htm | 0000017843-26-000018 |
| Document: 0000017843-26-000018-index-headers.html | 0000017843-26-000018 |
| Document: 0000017843-26-000018-index.html | 0000017843-26-000018 |
| Document: 0000017843-26-000018.txt | 0000017843-26-000018 |
| 8-K Data (Synthetic) | 0000017843-26-000018 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 5w ago | Insider Cluster | $490.58 $400.85 | ▼ −18.29% | ▼ −17.78% | $388.47 (−20.81%) |
Aug 12, 2026 7w ago | 8-K | $535.57 $443.19 | ▼ −17.25% | ▼ −15.50% | $388.47 (−27.47%) |
Aug 1, 2026 8w ago | Institutional Cluster | $543.49 $476.42 | ▼ −12.34% | ▼ −13.58% | $388.47 (−28.52%) |
Jun 3, 2026 17w ago | Insider Cluster | $492.62 $597.24 | ▲ +21.24% | ▲ +22.61% | $388.47 (−21.14%) |
Apr 29, 2026 22w ago | 8-K | $428.20 $462.01 | ▲ +7.90% | ▲ +2.93% | $388.47 (−9.28%) |
Apr 29, 2026 22w ago | Press Release | $406.53 $460.91 | ▲ +13.38% | ▲ +7.92% | $388.47 (−4.44%) |
Apr 17, 2026 24w ago | 8-K | $452.00 $404.26 | ▼ −10.56% | ▼ −14.76% | $388.47 (−14.06%) |
Apr 17, 2026 24w ago | Press Release | $445.48 $429.58 | ▼ −3.57% | ▼ −8.94% | $388.47 (−12.80%) |
Apr 2, 2026 26w ago | Press Release | $391.33 $428.20 | ▼ −9.42% | ▲ +0.45% | $388.47 (+0.73%) |
Feb 12, 2026 33w ago | Court Ruling | $367.81 $361.11 | ▼ −1.82% | ▲ +0.97% | $388.47 (+5.62%) |
US Market Status
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