Specialty materials manufacturer ATI (NYSE:ATI) announced better-than-expected revenue in Q3 2026, with revenue up 26.5% year on year to $1.42 billion. Its non-GAAP profit of $1.46 per share was 6.8% above analysts' consensus estimates.
For more on ATI, read our full research report .
ATI (ATI) Q3 2026 highlights:
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Revenue$1.42 billion vs S&P analysts' consensus estimates of $1.32 billion (26.5% year-on-year growth, 7.9% beat)
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Adjusted EPS$1.46 vs S&P analysts' consensus estimates of $1.37 (6.8% beat)
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Adjusted EBITDA$327.9 million vs analysts' consensus estimates of $311.1 million (23% margin, 5.4% beat)
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Adjusted EPS guidance$5.20 at the midpoint for the full year, beating analysts' consensus estimates by 1.4%
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EBITDA guidance$1.20 billion at the midpoint for the full year, above analysts' consensus estimates of $1.17 billion
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Operating margin19.1%, up from 14.4% in the same quarter last year
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Free cash flow margin17.4%, up from 14.8% in the same quarter last year
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Market capitalization$22.51 billion
"These results show the strength and balance of ATI's portfolio and reinforce our growth outlook," Fields continued. "We're delivering on our commitments and positioning ATI for even stronger performance in 2027."
Revenue growth
A company's long-term revenue performance can indicate its overall quality. Even a poor business can perform well for one or two quarters, but a top-tier one grows for years. Over the last five years, ATI grew its revenue at a strong 13.2% compounded annual growth rate. Its growth surpassed the average industrials company and shows its offerings resonate with customers.
Long-term growth matters the most, but within industrials, a half-decade historical view may miss cycles, industry trends or a company capitalizing on catalysts such as a new contract win or a successful product line. ATI's annualized revenue growth of 8.6% over the last two years is below its five-year trend, but the results were still respectable.
This quarter, ATI reported strong year-on-year revenue growth of 26.5%, and its $1.42 billion of revenue topped Wall Street's consensus estimates by 7.9%.
Looking ahead, sell-side analysts expect revenue to grow 10.7% over the next 12 months, according to S&P, an improvement versus the last two years. This projection is noteworthy and indicates its newer products and services will spur better top-line performance.
Operating margin
ATI has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, with an average operating margin of 12.6%.
ATI's operating margin rose by 9.6 percentage points over the last five years, as its revenue growth provided operating leverage.
In Q3, ATI generated an operating margin of 19.1%, up 4.7 percentage points year on year. This was a positive development, reflecting improved efficiency.
Earnings per share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable.
ATI's full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it's at an inflection point.
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
ATI's EPS grew at a strong 41.1% compounded annual growth rate over the last two years, higher than its 8.6% annualized revenue growth. This indicates the company became more profitable on a per-share basis as it expanded.
A closer look at ATI's earnings can provide a better understanding of its performance. ATI's operating margin has expanded over the last two years while its share count has shrunk 3.9%. Improving profitability and share buybacks are positive signs for shareholders as they boost EPS growth relative to revenue growth.
In Q3, ATI reported adjusted EPS of $1.46, up from $0.85 in the same quarter last year. This result beat analysts' consensus estimates by 6.8%. Over the next 12 months, Wall Street expects ATI's full-year EPS to grow 33.3% from $4.62 to $6.16, according to S&P.
Key takeaways from ATI's Q3 results
ATI delivered a solid quarter, beating analysts' consensus revenue estimates by a wide margin and topping Wall Street's consensus estimates for EBITDA. Shares edged higher 1.9% to $168.47 immediately after the report.
ATI had a solid quarter, but one earnings result doesn't necessarily make the stock a buy. When deciding whether it is a good investment, it's important to consider its valuation, business quality and what has happened in the latest quarter. For more on ATI, read the full research report here (it's free) .
