Prior to this week, Amentum (AMTM +0.54%) stock had given investors plenty to celebrate since 2026 had begun. From the start of the year through the end of trading last week, shares of the engineering and technology solutions specialist had risen 27.2%, while the S&P 500 had risen 1.3%. But investors have been steadily clicking the sell button this week in response to the company's first quarter 2026 financial results, reported on Monday.
According to data provided by S&P Global Market Intelligence, Amentum stock is down 19.9% from the end of trading last Friday through the close of Thursday's market session.
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Mixed financial results lead to investors feeling "meh"
Reporting Q1 2026 adjusted diluted earnings per share (EPS) of $0.54, Amentum exceeded the consensus among analysts that it would post adjusted diluted EPS of $0.52. At the top of the income statement, however, the company failed to achieve the same success. While analysts anticipated the company would book sales of $3.32 billion, Amentum reported Q1 2026 revenue of $3.24 billion, a 5% year-over-year decrease.
NYSE: AMTM
Key Data Points
And it wasn't just the income statement that drew investor interest. In Q1 2026, Amentum reported negative free cash flow of $142 million, a stark reversal from the positive $102 million in free cash flow that it had reported in Q1 2025.
In addition to Q1 2026 financial results, the company provided fiscal 2026 guidance that included a revenue forecast of $13.95 billion to $14.3 billion, representing year-over-year growth of about 3%, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.1 billion to $1.14 billion, representing year-over-year growth of about 5%.
Is the stock's dip a buying opportunity?
While management foresees year-over-year revenue and adjusted EBITDA growth in fiscal 2026, investors would be well-advised to watch Amentum stock from the sidelines. Shares are hardly a bargain right now, trading at 75.2 times trailing earnings. Fortunately, for those seeking exposure to the nuclear energy industry, there are plenty of more compelling nuclear energy stocks to consider.
