tapebrief
AME · Q1 2026
Preliminary brief— based on press release only. Full analysis including management tone and Q&A will be added when the transcript is available.

AME · Q2 2026 Earnings

Ametek

Reported August 4, 2026

30-second summary

Ametek delivered Q2 revenue of $2.04B (+15% YoY, beating consensus $1.96B by 4.1%) and non-GAAP EPS of $2.09 (beating consensus $1.99 by 5% and the high end of prior guide $1.96–$2.00 by $0.09–$0.13). Orders grew 28% (organic +25%) and management raised FY26 EPS to $8.20–$8.30 (+$0.21 midpoint) with revenue now framed at "approximately 10%" — the exact upgrade the Q1 watch list flagged as the bull case. This is the third consecutive ~$0.10 EPS beat on the same-shaped guide, and the FY revenue label finally cracked to a quantified number, ending four quarters of qualitative sandbagging.

Headline numbers

EPS

Q2 FY2026

$2.09

+5.0% vs est.

Revenue

Q2 FY2026

$2.04B

+15.0% YoY

+4.1% vs est.

Gross margin

Q2 FY2026

35.9%

Free cash flow

Q2 FY2026

$0.45B

Operating margin

Q2 FY2026

25.8%

Key financials

Q2 FY2026
MetricQ2 FY2026Q2 FY2025YoYQ1 FY2026QoQ
Revenue$2.04B$1.78B+14.7%$1.93B+5.8%
EPS$2.09$1.78+17.4%$1.97+6.1%
Gross margin35.9%35.8%+10bps37.3%-140bps
Operating margin25.8%26.0%-20bps26.7%-90bps
Free cash flow$0.45B————

Guidance

Company raised full-year FY2026 adjusted EPS guidance by $0.21 at midpoint and accelerated FY revenue growth outlook to ~10% from high single digits, following strong Q2 beat with 15% revenue growth and adjusted EPS of $2.09 vs $1.96-$2.00 guided.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

MetricPeriodPrior guideActualΔResult
Adjusted EPSQ2 FY2026$1.96 to $2.00$2.09+$0.09 to $0.13 above guideBeat
RevenueQ2 FY2026high single digits YoY$2.04B+15% YoY, well above high single digit guideBeat

New guidance

MetricPeriodGuideYoY
Adjusted EPSQ3 FY2026$2.08 to $2.10+10% to +11% YoY
Revenue growth (YoY %)Q3 FY2026high single digits—

Changes to prior guidance

MetricPeriodPrior guideNew guideΔResult
Adjusted EPS
FY2026
$7.94 to $8.14 (7% to 10% YoY)$8.20 to $8.30 (10% to 12% YoY)+$0.06 to $0.16 at midpoint; +3 to 2 percentage points in YoY growth rateRaised
Revenue growth (YoY %)
FY2026
high single digitsapproximately 10%quantified as 'approximately 10%' vs prior qualitative 'high single digits'Raised
Organic sales growth (YoY %)
FY2026
mid-single digitsmid to high single digitsexpanded range from mid-single to mid-to-high single digitsRaised

Segment KPIs

Q2 FY2026
SegmentQ2 FY2026Q2 FY2025YoY
Electronic Instruments Group (EIG)$1.32B$1.16B+13.8%
Electromechanical Group (EMG)$0.723B$0.619B+16.8%

Other KPIs

Q2 FY2026
SegmentQ2 FY2026Q2 FY2025YoY
Orders Growth28% YoY——
Adjusted Operating Margin26.6%——
EIG Core Operating Margin30.1%——
EMG Core Operating Margin26.2%——
Operating Cash Flow$483.7M——
Free Cash Flow Conversion111%——

Management tone

Q3 → Q4 → Q1 → Q2 arc: Records with Q4 caution baked in → Record backlog, FY26 framed for steady-state → Inflection validated; confidence in driving further growth → Multi-year infrastructure build-out; we're in the beginning stages.

Two quarters ago management was still holding "mid-to-high single digits" as the FY26 revenue label with Q4 running at +13%; last quarter that narrowed to "high single digits" on the +11% Q1 print; this quarter it finally cracked to "approximately 10%" after +15%. The qualitative-to-quantitative shift was the exact resolution the Q1 watch list flagged as the bull case. From the release: "For 2026, we now expect overall sales to be up approximately 10% versus 2025." The refusal to extrapolate that characterized the FY25 arc and the first two prints of FY26 is now over. Management is finally putting a number on the run-rate rather than a label below it.

Three quarters ago AI was one growth driver among many; two quarters ago it entered the vocabulary as an infrastructure theme; this quarter it is explicitly tied to mission-critical semiconductor fabs, power grid, and grid modernization sitting inside "about half of our business." The anchor from the call: "AI is driving sizable demand for advanced semiconductors that require ultra-precise optics 3G metrology systems and expanded power infrastructure… we're supplying mission-critical essential products for new semiconductor fabs, new power plants, the A&D market, defense modernization." That reframes what had been a portfolio of end markets into a single interlocking secular thesis. The signal: management wants investors to underwrite the durability at "half the business" rather than at the individual segment level.

The framing shifted from cyclical execution to secular early-innings. Last quarter Zapico's tone was "inflection validated, confidence in driving further growth" — a within-cycle statement. This quarter: "we're in the beginning stages of a multi-year infrastructure build-out, and we're incredibly well positioned." That is a materially longer-horizon claim, and it accompanies the largest single-quarter FY EPS raise ($0.21 midpoint) in the four quarters covered. Management is asking the market to price durability, not just this year's beat.

Paragon's rehabilitation arc completed. Two quarters ago Paragon was framed as "50% through restructuring, targeting 35% EBITDA"; last quarter as "double-digit growth, orders substantially up"; this quarter as "an interesting great example of the Ametek growth model in action… now the volume is back… allowed us to capture outsized margin expansion in EMG." The 26.2% EMG core margin (+290bps YoY) makes the case quantitatively. Paragon has moved from problem child to poster child across four quarters.

Recurring themes management leaned on this quarter:

Multi-year infrastructure build-out across AI, power, defense, and aerospaceMission-critical niche positioning enabling pricing power and durabilityCore margin expansion driven by Paragon leverage, productivity gains, and positive pricingBroad-based organic growth acceleration across all divisions and geographiesAI deployment across internal operations and product enhancementsStrong order momentum and backlog visibility supporting H2 and 2027 guidance

Risks management surfaced:

Geopolitical uncertainties and volatile energy prices (mentioned as creating opportunities rather than pure risks)Tariffs and inflation (offset by pricing actions)Integration execution risk on Indicor acquisitionLumpy order cadence (acknowledged but contextualized as durable given underlying capital spend)

Answers to last quarter's watch list

Q2 EPS delivery vs. the $1.96–$2.00 guide — Q2 non-GAAP EPS of $2.09 beat the high end by $0.09–$0.13, a third consecutive ~$0.10 beat on the same-shaped guide. The Q1 hypothesis that a third consecutive beat would push FY EPS toward the $8.20s was resolved exactly on the number: FY26 guide now $8.20–$8.30.
Resolved positively
FY26 revenue label after Q2 — Management moved from "high single digits" to "approximately 10%" — the qualitative-to-quantitative shift the watch flagged as the bull case. Q2's +15% print forced the label upgrade.
Resolved positively
Order growth normalization off the +22% organic spike — Q2 organic orders grew +25% (total +28%), sequentially above Q1's +22% organic pace and materially above the +10% durability threshold. The March pull-forward hypothesis is dead; the inflection is now durable through two full quarters, with record backlog of $4.11B (+21% from year-end) as the load-bearing evidence.
Resolved positively
A $1B+ M&A deal in H1 — Management noted continued acquisition activity and expects a deal to close in the second half of the year (referenced as Indicor in the tone extraction), but no >$1B transaction has closed within H1. The rhetoric has now escalated five quarters running without a matching deal size.
Continue monitoring
EIG adj. op margin trajectory above 31% — EIG core op margin came in at 30.1% in Q2, up 40bps YoY but down ~130bps from Q1's 31.4% and below the 31% "new floor" hypothesis. YoY expansion is positive; the sequential step-down keeps 31%+ from being confirmed as the floor. Status: Resolved negatively on the sequential floor test
FARO one-year disclosure (mid-2026) — No clean organic/EBITDA disclosure appears in the press release; the company didn't quantify FARO's one-year mark in the print.
Not resolved

What to watch into next quarter

Q3 EPS delivery vs. the $2.08–$2.10 guide: Four consecutive ~$0.10 beats would push FY26 EPS toward $8.35–$8.40, above the current high end of $8.30 and setting up a fourth in-year raise. A beat of only $0.03–$0.05 would suggest the guide has caught up with the run-rate.

FY26 revenue framing after Q3: Management moved to "approximately 10%" on the Q2 print. Watch whether Q3 pushes the framing to "low double digits" or holds at ~10% — with H1 tracking at +13% YoY blended, the math supports another upward revision.

EIG core operating margin recovery above 31%: Q2 came in at 30.1% (+40bps YoY but below Q1's 31.4%). Watch whether the FARO mix drag is transient (integration-timing) or structural, and whether EIG returns to 31%+ as FARO scales toward its 30% EBITDA target.

Indicor close and integration: Management "continues to expect the acquisition to close in the second half." Watch for close timing, deal size disclosure, and whether Indicor materially moves the M&A capacity conversation beyond tuck-in scale.

Organic orders sustainability above +20%: Q1 organic orders +22%, Q2 organic orders +25%. Watch whether Q3 organic orders hold above +15% — the durability of the inflection into a third quarter is the load-bearing input for the 2027 setup Zapico referenced.

FARO one-year disclosure: Still due around Q3 or Q4 FY26. The Zygo-comparison thesis remains testable but untested.

Sources

  1. AME Q2 2026 press release / 8-K Exhibit 99.1, filed 2026-08-04 — https://www.sec.gov/Archives/edgar/data/1037868/000103786826000173/ametek8kexhibit99108042026.htm
  2. Tapebrief AME Q1 2026, Q4 2025, Q3 2025, and Q2 2025 briefs (prior quarter context)

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