The dividend yield on the S&P 500 is a mere 1.1%, rounded up, but that doesn't mean the entire equity market lacks attractive equity-income opportunities. It's simply a matter of knowing where to look.
Interestingly, some of the smallest sectors in the S&P 500 are where some of the largest dividend yields are found. Energy, which is the fourth-smallest sector in the S&P 500, yields 2.7% as measured by the S&P Energy Select Sector index. That gauge is a basket of the largest domestic energy stocks, ranked by market capitalization.
These energy stocks deliver big dividends and the potential for significant upside. Image source: Getty Images.
All right, so 2.7% might not qualify as "jaw-dropping," but investors shouldn't be dismayed because the energy sector is home to an array of dividend payers (and growers) with higher yields with the potential to reward long-term investors.
In fact, there are 69 U.S.-listed energy stocks carrying dividend yields of at least 3% and sporting gains over the past 12 months. Here's an interesting trio to consider.
1. Chevron is the stock for energy dividend dependability One of the blue chip dividend stocks in the oil patch, Chevron (CVX +1.01%), yields 3.7%, but more important than that above-average yield is the integrated oil giant's dividend reliability. The payout increase unveiled by the company earlier in 2026 marks the 39th consecutive year in which Chevron has boosted its dividend, providing income investors with the like-clockwork dependability they so desire.
Above-average yields and long track records of dividend growth are nice, but investors are right to demand dividend safety, too. Chevron offers that because it has operational expertise exceeding that of some rivals and has proven to be an adept cost-cutter over the years. Obviously, cost containment is vital in the capital-intensive exploration and production sector because it lowers producers' break-even points.
Said differently, adept cost managers like Chevron can continue generating and growing profits even if oil prices slide. Speaking of oil prices, thanks to its cost-cutting prowess and a portfolio chock-full of high-quality assets, Chevron can, by some estimates, fund its dividend at $40 per barrel. That's $57 below where West Texas Intermediate (WTI) settled on May 22.
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Adding to the safety net is management's commitment to shareholder rewards, which totaled $6 billion in the first quarter, spread across buybacks and dividends.
2. Drilling down on Delek Logistics With a market capitalization of $2.7 billion, Delek Logistics Partners (DKL 0.20%) is a mid-cap stock, which might explain some of its anonymity. But with a dividend yield of 8.8% and fresh off an April payout increase, this stock arguably deserves more attention in the energy dividend conversation.
This midstream operator has multiple catalysts for share price appreciation and potential dividend growth, including year-over-year earnings growth of 23.7%. Additionally, the company is shedding its "captive" status from Delek (DK +0.66%), which owns 63.3% of the logistics firm, as it expects to source 80% of its 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA) from third parties.
Experienced equity income investors know that midstream energy is a great place to find dividends, but on the surface, it's hard to tell many of these operators apart. Delek Logistics breaks from the pack by combining crude, natural gas, and water services, giving it some wide-moat advantages.
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This energy stock may also be appealing to value investors because management views it as the cheapest company in the space, with a compelling growth trajectory ahead.
3. Connect with Kinetik Kinetik Holdings (KNTK +0.24%) is another mid-cap midstream operator that doesn't generate a lot of buzz, but it may also be a friend to dividend investors. It yields 6.3% and boosted its payout in January.
Kinetik, which has a significant footprint in the Delaware Basin, recently reiterated its 2026 EBITDA guidance with CEO Jamie Welch noting the company has "meaningful insulation" from near-term oil price gyrations. Welch also noted customers are pulling forward activity to 2027, positioning Kinetik for what could be another solid year.
There's even more to like with this midstream operator. Kinetik is buying back stock and reducing debt, and those perks are accruing as the stock trades at discounts to peers despite Kinetik generating better net margins. That may be a sign markets aren't fully appreciating this energy stock, but if that sentiment changes, the shares could rally.
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, today announced native Prometheus support, including direct ingestion via Remote Write and full PromQL support in Kibana. These additions enable Site Reliability Engineers (SREs) to analyze Prometheus metrics alongside logs and traces in a single platform, without rewriting queries or rebuilding pipelines. As organizations scale Kubernetes, Prometheus telemetry cardinality and volumes surge, forcing SREs to juggle mult.
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, announced that Jina Embeddings v3 is now available as a self-deployable partner model in Gemini Enterprise Agent Platform Model Garden. As the first Jina model available on the platform, it enables organizations to deploy high-performance retrieval models directly within their own cloud environments. With Jina Embeddings v3 deployed directly inside their Google Cloud projects and Virtual Private Clouds (VPCs), enterpri.
On April 23, 2026, Elastic NV ESTC shares fell 7.1% to a current price of $45.75. This decline comes amid a challenging year for the stock, which has decreased 39.4% year-to-date and 41.0% over the past year. The stock has experienced volatility, with a 52-week trading range between $42.05 and $96.07.
GF Value™ verdict: The current price of $45.75 is 56.0% below the GF Value™ of $103.86, indicating significant undervaluation.GF Score™: At 68/100, ESTC is rated as Above Average, suggesting potential for long-term returns.Notable signal: Insider activity reflects a bearish sentiment as insiders sold $2.0M worth of shares over the last three months without any buying. Is ESTC Overvalued or Undervalued? Elastic NV is currently trading at a price of $45.75, significantly below its GF Value™ of $103.86. This 56.0% margin of safety indicates that the stock is undervalued based on GuruFocus' proprietary valuation metrics. The GF Valuation label categorizes ESTC as "Significantly Undervalued," suggesting that there is a considerable opportunity for investors looking to enter the stock at this price point. However, caution is warranted as the recent insider selling may reflect a lack of confidence in the company's near-term prospects.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. This methodology underscores the potential for price appreciation if the market corrects its valuation of Elastic NV in alignment with its intrinsic value.
How Does ESTC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 16.1x 198.5x The current P/E ratio of 16.1x is significantly lower than the 5-year median P/E of 198.5x. This suggests that ESTC is trading well below its historical valuation levels. The P/E analysis aligns with the GF Value™ verdict of being undervalued, indicating a potential buying opportunity for investors who believe in the company's long-term growth prospects.
What Does ESTC's GF Score™ Tell Us? Metric Rating GF Score™ 68 Financial Strength 5/10 Profitability 4/10 Growth 9/10 Valuation 2/10 Momentum 2/10 The GF Score™ of 68/100 indicates that Elastic NV has a strong growth potential, as evidenced by its growth rank of 9/10. However, its financial strength and profitability scores, at 5/10 and 4/10 respectively, suggest that there are areas for improvement. The valuation rank of 2/10 and momentum rank of 2/10 indicate that the stock is currently facing challenges in these areas, which may be contributing to its recent price decline.
What Are Insiders Doing with ESTC Stock? Recent insider activity shows that insiders have sold $2.0M worth of shares in the last three months, with no reported buying during this period. This pattern of selling may indicate a lack of confidence in the company's near-term performance or overall market sentiment. Such actions could be viewed as a cautionary signal for potential investors, as insider confidence often correlates with company prospects.
What This Means for Investors Based on the GF Value™ assessment, Elastic NV ESTC is currently undervalued. The significant gap between the current price and the GF Value™ suggests there may be an opportunity for price appreciation if the market recognizes the intrinsic value of the company. However, investors should consider the recent insider activity and the overall market environment before making any decisions.
For the complete analysis, visit the Elastic NV ESTC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ESTC's GF Score™?
ESTC has a GF Score™ of 68/100, indicating that it is rated as Above Average and may generate higher long-term returns based on backtested performance.
Is ESTC overvalued or undervalued?
Elastic NV is currently undervalued, with a GF Value™ of $103.86 compared to its current price of $45.75, suggesting a significant margin of safety.
What is ESTC's P/E ratio?
The current P/E ratio for Elastic NV is 16.1x, which is substantially lower than its historical 5-year median P/E of 198.5x, indicating the stock is trading below its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, today announced jina-embeddings-v5-omni, a new family of multimodal embedding models with the ability to represent text, images, video, and audio as vectors. Developers can now perform search, classification, clustering, and deduplication across different media types, giving users powerful new ways to understand and organize multimodal data. Available in two sizes, small and nano, the new omni models share the exact sa.
On May 13, 2026, Elastic NV ESTC shares fell 3.0% today, bringing the current price to $48.57. Over the past 52 weeks, the stock has fluctuated between a high of $96.07 and a low of $42.05, reflecting significant volatility in its price performance.
GF Value™ verdict: The current price of $48.57 is 53.6% below the estimated fair value of $104.62.GF Score™: The stock has a GF Score™ of 62/100, which indicates it is above average in terms of quality and performance potential.Notable signal: Insiders have sold $2.0M worth of shares in the last three months, with no buying activity reported. Is ESTC Overvalued or Undervalued? The current price of Elastic NV ESTC at $48.57 presents a significant discount compared to its GF Value™ of $104.62, indicating that the stock is undervalued by approximately 53.6%. This margin of safety suggests that there may be an opportunity for investors, as the GF Valuation label indicates that the stock is significantly undervalued. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
However, potential investors should consider the risks associated with such valuation discrepancies. Market sentiment, future growth prospects, and fundamental changes in the company’s operations or external environment can impact price movements. While the current valuation may suggest an attractive entry point, it is crucial to remain cautious about external factors that could weigh on performance.
How Does ESTC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 17.0x 198.5x Elastic NV's current P/E ratio of 17.0x is significantly lower than its 5-year median P/E of 198.5x, indicating that the stock is trading well below its historical valuation. This P/E analysis aligns with the GF Value™ verdict of being undervalued, suggesting that the current pricing may present an attractive opportunity in the market.
What Does ESTC's GF Score™ Tell Us? Metric Rating GF Score™ 62 Financial Strength 5/10 Profitability 4/10 Growth 8/10 Valuation 2/10 Momentum 1/10 The GF Score™ of 62/100 indicates a stock that is above average in quality. Notably, Elastic NV has a strong Growth rank of 8/10, reflecting its potential for future expansion. However, the Valuation rank of 2/10 and Momentum rank of 1/10 suggest areas of concern, particularly in how the market perceives the stock's current pricing and performance trends.
What Are Insiders Doing with ESTC Stock? In recent months, insiders at Elastic NV have sold approximately $2.0 million in shares without any reported buying activity. This pattern of selling may indicate a lack of confidence in the stock's short-term prospects or could reflect personal financial decisions of the insiders. The absence of insider buying, especially during a time when the share price is significantly undervalued, may also raise questions about the company's near-term outlook.
What This Means for Investors Based on the analysis, Elastic NV ESTC is currently undervalued with a GF Value™ indicating a significant upside potential. However, investors should remain vigilant regarding insider selling and the company's financial health, as these factors could influence future performance.
For the complete analysis, visit the Elastic NV ESTC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ESTC's GF Score™?
Elastic NV has a GF Score™ of 62/100, indicating that it is above average in terms of quality and potential for long-term returns.
Is ESTC overvalued or undervalued?
Elastic NV is currently undervalued with a GF Value™ indicating it is 53.6% below its estimated fair value.
What is ESTC's P/E ratio?
The current P/E ratio for Elastic NV is 17.0x, which is significantly lower than its historical median of 198.5x, suggesting that the stock is trading at a discount relative to its past valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, announced that it will release its financial results for its fourth quarter and fiscal 2026 ended April 30, 2026, after the U.S. market close on Thursday, May 28, 2026. The company will host a conference call at 2:00 p.m. PT / 5:00 p.m. ET that day to review its financial results and business outlook. A live webcast of the conference call will be accessible from the Elastic investor relations website at ir.elastic.co.
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, announced that its management will present at the following conferences: BofA Securities Global Technology Conference 2026 on Thursday, June 4, 2026, at 9:20 a.m. PT / 12:20 p.m. ET Rosenblatt's 6th Annual Technology Summit on Wednesday, June 10, 2026, at 11:00 a.m. PT / 2:00 p.m. ET The presentations will be webcast live, and a replay will be available for a limited time on the Events and Presentations section of Elas.
Analysts on Wall Street project that Elastic (ESTC - Free Report) will announce quarterly earnings of $0.56 per share in its forthcoming report, representing an increase of 19.2% year over year. Revenues are projected to reach $446.3 million, increasing 14.9% from the same quarter last year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Elastic metrics that Wall Street analysts commonly model and monitor.
According to the collective judgment of analysts, 'Revenue- Subscription- Elastic Cloud' should come in at $216.86 million. The estimate suggests a change of +19.5% year over year.
The consensus estimate for 'Revenue- Subscription' stands at $420.64 million. The estimate suggests a change of +16.3% year over year.
Analysts predict that the 'Revenue- Subscription- Other subscription' will reach $204.05 million. The estimate indicates a year-over-year change of +13.2%.
The consensus among analysts is that 'Revenue- Services' will reach $25.74 million. The estimate indicates a change of -3.6% from the prior-year quarter.
View all Key Company Metrics for Elastic here>>>
Over the past month, Elastic shares have recorded returns of +17.7% versus the Zacks S&P 500 composite's +5.5% change. Based on its Zacks Rank #3 (Hold), ESTC will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, announced financial results for its fourth quarter and full fiscal year ended April 30, 2026. Fourth Quarter Fiscal 2026 Financial Highlights Total revenue was $451 million, an increase of 16% year-over-year, or 14% on a constant currency basis Total subscription revenue was $422 million, an increase of 17% year-over-year, or 15% on a constant currency basis Sales-led subscription revenue (calculated as subscription re.
Elastic (ESTC - Free Report) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +8.72%. A quarter ago, it was expected that this software developer would post earnings of $0.64 per share when it actually produced earnings of $0.73, delivering a surprise of +14.06%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Elastic, which belongs to the Zacks Internet - Software industry, posted revenues of $450.68 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $388.43 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Elastic shares have lost about 28.6% since the beginning of the year versus the S&P 500's gain of 9.9%.
What's Next for Elastic?While Elastic has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Elastic was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.65 on $469.58 million in revenues for the coming quarter and $2.89 on $1.97 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Paychex (PAYX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended May 2026.
This payroll processor and human-resources services provider is expected to post quarterly earnings of $1.32 per share in its upcoming report, which represents a year-over-year change of +10.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Paychex's revenues are expected to be $1.6 billion, up 12.4% from the year-ago quarter.
Elastic (ESTC - Free Report) reported $450.68 million in revenue for the quarter ended April 2026, representing a year-over-year increase of 16%. EPS of $0.61 for the same period compares to $0.47 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $446.4 million, representing a surprise of +0.96%. The company delivered an EPS surprise of +8.72%, with the consensus EPS estimate being $0.56.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Elastic performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Services: $28.24 million compared to the $25.77 million average estimate based on eight analysts. The reported number represents a change of +5.8% year over year.Revenue- Subscription: $422.45 million versus $420.6 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +16.8% change.Revenue- Subscription- Elastic Cloud: $217.36 million versus $216.86 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +19.8% change.Revenue- Subscription- Other subscription: $205.09 million versus the seven-analyst average estimate of $204.05 million. The reported number represents a year-over-year change of +13.8%.Revenue- Subscription- Elastic Cloud- Annual Elastic Cloud: $169.6 million compared to the $167.57 million average estimate based on three analysts.Revenue- Subscription- Elastic Cloud- Monthly Elastic Cloud: $47.77 million versus the three-analyst average estimate of $48.87 million.View all Key Company Metrics for Elastic here>>>
Shares of Elastic have returned +13.7% over the past month versus the Zacks S&P 500 composite's +5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Why Elastic Could Be the Next AI Winner in 2026Elastic NYSE: ESTC reported stronger-than-expected fourth-quarter fiscal 2026 results, with executives pointing to accelerating customer commitments, rising artificial intelligence-related adoption and larger multi-year deals as key drivers of momentum heading into fiscal 2027.
Chief Executive Officer Ashutosh Kulkarni said the company “finished the year strong, beating our guidance across every key metric,” marking what he described as the seventh consecutive quarter of disciplined field execution. He said current remaining performance obligations, or CRPO, accelerated to 20% growth, while remaining performance obligations, or RPO, grew more than 28% in the quarter.
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Buyback Boom: 3 Companies Betting Big on Themselves“Organizations are increasingly choosing Elastic for their long-term AI transformations and making larger multi-year commitments to standardize on our platform for the future,” Kulkarni said.
Revenue Rises 16% as Subscription Growth Remains Durable For the fourth quarter, Elastic reported total revenue of $451 million, up approximately 16% as reported and 14% on a constant-currency basis. Sales-led subscription revenue was $375 million, representing growth of 19% as reported and 16% in constant currency.
MarketBeat Week in Review – 03/03 - 03/07For the full fiscal year, the company reported 17% revenue growth and a non-GAAP operating margin of 16.4%. Fourth-quarter non-GAAP operating margin was 14.8%.
Chief Financial Officer Navam Welihinda said the company’s sales-led subscription revenue grew 20% for fiscal 2026, supported by “strong customer commitments alongside stable consumption patterns.” He said Elastic’s sales strategy is focused on high-potential mid-market and strategic enterprise customers.
Elastic said it saw a record fourth quarter for deals with more than $1 million in annual contract value. During fiscal 2026, the company added more than 30 net new customers to its cohort of customers with more than $1 million in ACV, bringing that group to more than 240. Customers spending more than $5 million annually grew 30%, and the company ended the year with more than 1,720 customers spending over $100,000 in ACV.
AI Adoption Drives Larger Commitments Executives repeatedly emphasized AI as a central driver of demand across Elastic’s platform. Kulkarni said the company now has more than 600 customers with ACV of at least $100,000 using its AI capabilities, including more than 40 serverless customers that were previously not included in that count. He said AI use cases have penetrated more than one-third of Elastic’s $100,000-plus ACV customer cohort.
Kulkarni described four areas where Elastic believes it is positioned for AI-related demand: data gravity, context, specialized agents and platform consolidation. He said customers are using Elasticsearch as a data store for AI applications, as a context platform for retrieval and as part of AI-driven security and observability workflows.
The company highlighted several customer examples, including a seven-figure new logo win with a global provider of financial business information that is using Elasticsearch across a repository of more than 2 billion documents. Elastic also cited a seven-figure expansion with a workplace AI software firm and an eight-figure win with a Fortune 50 global financial services firm consolidating cyber data silos into an AI-driven SIEM.
In response to an analyst question, Kulkarni said Elastic is seeing momentum from customers using its platform as a data store, its vector database and Jina models for context, and AI-driven security and observability agents. He said these capabilities are helping Elastic win larger, longer-term commitments because they make the platform more entrenched in customer AI infrastructure.
Public Sector Cloud Mix Affects In-Quarter Revenue Elastic executives said a larger mix of cloud commitments in the quarter affected reported fourth-quarter revenue timing. Welihinda explained that cloud commitments typically ramp over the course of the year, while self-managed commitments include a portion of revenue recognized upfront when the license is delivered.
Kulkarni said the company’s partnership with the Cybersecurity and Infrastructure Security Agency around Elastic SIEM as a Service is expanding, with more civilian agencies moving away from competing security offerings onto the Elastic Cloud-powered service. He said the commitments mix in the quarter shifted more toward Elastic Cloud than in prior years, which affected in-quarter revenue but is expected to be positive as agencies ramp usage toward commitment levels.
Welihinda said the company anticipates U.S. public sector cloud momentum will continue in fiscal 2027. He added that Elastic’s public sector business remains strong and that the company is pleased with adoption of SIEM as a Service by civilian agencies.
RPO and CRPO Signal Backlog Strength Welihinda said CRPO reached $1.2 billion in the fourth quarter, growing 20% as reported and in constant currency, up from 15% constant-currency growth in the prior quarter. RPO reached $1.98 billion, growing 28% as reported and 27.4% in constant currency.
He said non-current RPO, representing obligations to be recognized beyond 12 months, increased 43% year over year, underscoring a shift toward multi-year commitments. Welihinda said Elastic secured those commitments without a material change in discounting practices.
“While there continues to be noise and questions in the market regarding AI’s impact on software, there is clarity among our customers with respect to Elastic being an essential long-term component in their AI infrastructure,” Welihinda said.
Fiscal 2027 Guidance Calls for Revenue Growth and Margin Expansion Elastic guided for first-quarter fiscal 2027 total revenue of $469 million to $470 million, representing 13.1% year-over-year growth at the midpoint, or 12.8% growth in constant currency. The company expects first-quarter sales-led subscription revenue of $392 million to $393 million, representing 15.9% growth at the midpoint, or 15.6% in constant currency.
For fiscal 2027, Elastic expects:
Total revenue of $1.985 billion to $2 billion, representing 14.6% growth at the midpoint. Sales-led subscription revenue of $1.673 billion to $1.688 billion, representing 16.9% growth at the midpoint. Non-GAAP operating margin of approximately 19%. Non-GAAP diluted earnings per share of $3.21 to $3.29. Adjusted free cash flow margin of 21.5%, excluding acquisitions or one-time charges. Welihinda said revenue and sales-led subscription revenue are expected to build momentum during fiscal 2027, with the first quarter representing the lowest quarterly growth and the fourth quarter the highest. He cited CRPO converting into revenue and increasing ramped sales capacity as the two main drivers.
Elastic also raised its medium-term fiscal 2029 non-GAAP operating margin target to approximately 25%, up from a previous target of more than 20%. Welihinda said the company remains on track to exceed the Rule of 40 by fiscal 2029 and to reach its medium-term target of more than 20% sales-led subscription revenue growth.
Executives said Elastic expects to expand operating margins as it uses AI internally to improve productivity, while still growing total headcount on a net basis in fiscal 2027. Kulkarni said sales capacity will continue to increase and that the company does not plan meaningful go-to-market changes after changes made roughly eight quarters ago have “settled in very nicely.”
Elastic also said it continued share repurchases during the quarter, buying approximately 650,000 shares for about $40 million. Since the repurchase program began in October, the company has repurchased approximately 4.4 million shares and used about 68% of its $500 million authorization.
About Elastic NYSE: ESTCElastic N.V. operates as a search and analytics company, offering a suite of open source and subscription-based solutions for search, observability and security use cases. Its flagship product, Elasticsearch, enables fast and scalable full-text search and analytics across large volumes of structured and unstructured data. Complementary tools such as Kibana provide visualization capabilities, while Beats and Logstash serve as lightweight data shippers and data processing pipelines, respectively.
The company was founded in 2012 by Shay Banon, who serves as chief technology officer, and Steven Schuurman.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Elastic Right Now?Before you consider Elastic, you'll want to hear this.
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Key Takeaways ESTC reported Q4 earnings of 61 cents per share, up 29.8% year over year and above estimates.Elastic's revenues rose 16%, with subscription revenues contributing 94% of total sales.ESTC guided for fiscal 2027 revenues to be in the range of $1.985B-$2B and EPS of $3.21-$3.29. Elastic N.V. (ESTC - Free Report) reported fourth-quarter fiscal 2026 non-GAAP earnings of 61 cents per share, which beat the Zacks Consensus Estimate by 8.9%. The figure increased 29.8% year over year.
Elastic’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19%.
Revenues of $451 million beat the Zacks Consensus Estimate by 1%. The figure rose 16% year over year on a reported basis and 14% on a constant-currency (cc) basis. Customers with ACV above $100,000 ended the quarter at more than 1,720, underscoring continued enterprise traction.
Elastic’s Q4 in DetailsSubscription revenues remained the company's core barometer of health, totaling $422.4 million, up 16.8% year over year and representing 94% of total revenues. Within that, sales-led subscription revenues (subscription revenues excluding Monthly Elastic Cloud) rose 19% year over year to $374.7 million, reflecting strength in larger, sales-driven engagements.
Cloud continued to expand as a meaningful contributor. Annual Elastic Cloud revenues were $169.6 million, up 26% year over year. Monthly Elastic Cloud revenues were $47.8 million, up 3% year over year, keeping total Elastic Cloud at $217.4 million, or 48% of total revenues. Professional services revenues were $28.2 million, up 6% year over year and representing 6.3% of total revenues.
Non-GAAP gross margin was 77.5% (up roughly 50 bps year over year) and non-GAAP operating margin was 14.8% (down approximately 50 bps).
Current remaining performance obligations were $1.203 billion, up 20% year over year, while total remaining performance obligations reached $1.982 billion, up 28% year over year.
Elastic’s Balance Sheet and Cash FlowCash, cash equivalents and marketable securities totaled $1.37 billion as of April 30, 2026, against total debt of $570.9 million.
Operating cash flow was $152.7 million, and adjusted free cash flow was $149.8 million, implying a 33% adjusted free cash flow margin for the quarter.
In the fourth quarter of fiscal 2026, Elastic repurchased about 0.7 million shares at an average price of $61.28 for roughly $40 million. In fiscal 2026, the company repurchased about 4.4 million shares at an average price of $76.91, representing approximately $340 million in aggregate repurchases under its $500 million authorization.
ESTC’s Outlook Implies Continued Growth Into FY27For the first quarter of fiscal 2027, Elastic expects total revenues of $469-$470 million (up 13.1% year over year at midpoint) and sales-led subscription revenues of $392-$393 million (up 15.9% year over year at midpoint). The Zacks Consensus Estimate for ESTC’s first-quarter fiscal 2027 revenues is pegged at $469.58 million, indicating a year-over-year increase of 13.1%.
Non-GAAP operating margin is expected to be about 14.0%, with non-GAAP earnings projected at 57-59 cents per share. The Zacks Consensus Estimate for ESTC’s first-quarter fiscal 2027 earnings is pegged at 65 cents per share, indicating a year-over-year increase of 8.3%.
For fiscal 2027, management expects total revenues to be in the range of $1.985-$2 billion (up 14.6% year over year at midpoint) and sales-led subscription revenues to be in the band of $1.673-$1.688 billion (up 16.9% year over year at midpoint), alongside an expected non-GAAP operating margin of about 19.0% and non-GAAP earnings of $3.21-$3.29 per share.
The Zacks Consensus Estimate for ESTC’s fiscal 2027 revenues is pegged at $1.74 billion, indicating a year-over-year increase of 17%. The Zacks Consensus Estimate for ESTC’s fiscal 2027 earnings is pegged at $2.53, indicating a year-over-year increase of 24%.
ESTC’s Zacks Rank and Stocks to ConsiderCurrently, Elastic carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Applied Materials (AMAT - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Applied Materials have rallied 74.9% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.02 per share, up by 8.3% over the past 30 days, indicating a year-over-year surge of 27.6%.
Shares of Celestica have gained 19.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.
Amphenol shares have jumped 9.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.
Elastic remains a deep value opportunity despite a recent 30% rally and strong post-earnings performance. ESTC's complex infrastructure software and consumption-based model insulate it from AI-driven risks impacting simpler, seat-based SaaS peers. Recent fiscal Q4 results exceeded expectations, with bullish forward guidance and growing backlog from AI-native customers.
Software M&A activity has returned in 2026 as public SaaS multiples compress while private equity dry powder and strategic stack consolidation remain abundant. Mid-cap, sticky enterprise software companies with negative book equity, AI-relevant platforms, and visible activist or buyback signaling are the most logical targets. We screened for six attributes:
Digestible market cap between $1 billion and $10 billion Sticky recurring revenue backed by sizeable remaining performance obligations (RPO) AI-relevant platform fit for hyperscaler or larger SaaS roadmaps Margin inflection and free cash flow generation Shareholder activism or aggressive buybacks Constrained or negative shareholders’ equity that complicates standalone scaling The following three names check most of the boxes and are ranked by likelihood of a takeover.
3. Elastic Elastic (NYSE: ESTC | ESTC Price Prediction) is the largest candidate, with a market cap of $7.1 billion. Q4 FY26 revenue hit $450.68 million (+16% year over year), with total RPO of $1.98 billion (+28%) and adjusted free cash flow of $149.81 million at a 33% margin.
The strategic fit is clean. Elastic was selected by Google as a critical security partner for GDC air-gapped environments and won the 2026 Google Cloud Partner of the Year Award for Data Management & AI. CEO Ash Kulkarni said customers are “making larger commitments to Elastic over longer periods of time as we become a critical part of their AI infrastructure.” Logical acquirers include Google Cloud, AWS, or Cisco as a post-Splunk security and observability tuck-in.
Shares closed most recently at $67.59, down 17.3% over the past year, with a forward PE near 21x. Elastic ranks third because it maintains a positive equity base of $1.28 billion and visible standalone profitability, lowering urgency for a sale.
2. Box Box (NYSE: BOX) carries a market cap of $3.8 billion and has been M&A speculation fodder thanks to Starboard’s prior activist position and KKR’s convertible preferred stake. The content cloud generated record non-GAAP operating margin of 27.7% with RPO of $1.6 billion, up 12% year over year, and Box operates with a stockholders’ deficit (negative shareholders’ equity).
Box AI plus expanded AWS partnerships covering Amazon Bedrock, Claude, and Titan, plus customers like Blue Origin, Citadel, Biogen, the FDA, and Naval Air Systems Command, make it a natural bolt-on for Microsoft 365, Oracle, IBM, or Salesforce. PE rollup logic applies given mature growth and durable FCF.
Box closed at $27.66, down 27.4% over one year, with a forward PE of roughly 15x. CEO Aaron Levie sold only 791 shares in the recent vesting cycle, suggesting confidence. Analysts have a consensus target price of $32.50.
1. Appian Appian (NASDAQ: APPN) is the smallest and most digestible target. Market cap stands at roughly $2.0 billion, with Q1 FY26 revenue of $202.18 million (+21.5% year over year), cloud subscriptions of $124.5 million (+25.0%), cloud net annual recurring revenue (ARR) expansion of 115%, and adjusted EBITDA of $26.6 million. Shareholders’ equity is negative $58.97 million, and the board authorized a fresh $50 million share repurchase.
The low-code automation platform is a textbook PE rollup candidate for Thoma Bravo, Vista, or Silver Lake, and a strategic fit for ServiceNow, Salesforce, SAP, or IBM. Federal traction, including a U.S. Army AI transformation enterprise agreement, adds a defensible moat. CRO Mark Dorsey acquired shares at around $19.14 in May, suggesting management views the stock as undervalued.
Shares closed at $26.69, off 24.65% year-to-date, against an EV/revenue multiple of just 2.79x. FY26 guidance calls for revenue of $819 million to $831 million and adjusted EBITDA up to $105 million. Founder Matt Calkins controls voting through a dual-class share structure, a wrinkle any buyer must address. Yet accelerating cloud ARR, margin inflection, a depressed multiple, and the smallest deal size make Appian the most actionable name.
The Consolidation Backdrop The 2026 software tape is built for deals. Public SaaS multiples have compressed while strategic acquirers and private equity sponsors hold record war chests. Elastic offers scale and AI infrastructure leverage. Box offers a content cloud with persistent activist context. Appian offers the cleanest combination of size, multiple, and platform fit. Investors watching M&A consolidation should treat Appian as the bellwether where speculative interest is most likely to translate into a real transaction window.
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, today introduced an agentic Kubernetes investigation workflow and MCP-based observability skills that diagnose incidents the moment an alert fires. By the time an SRE opens the alert, the root cause has already been identified, evidence has been assembled, and recommended next steps have been surfaced. For teams running Kubernetes at scale, the gap between alert and answer costs time, compounds outages, and wears down.
SG Americas Securities LLC boosted its holdings in shares of ABM Industries Incorporated (NYSE:ABM – Free Report) by 206.5% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 37,849 shares of the business services provider’s stock after buying an additional 25,501 shares during the quarter. SG Americas Securities LLC owned about 0.06% of ABM Industries worth $1,601,000 at the end of the most recent quarter.
Several other institutional investors also recently bought and sold shares of the stock. Royal Bank of Canada grew its stake in ABM Industries by 0.4% in the 1st quarter. Royal Bank of Canada now owns 86,571 shares of the business services provider’s stock valued at $4,100,000 after buying an additional 312 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in ABM Industries by 2.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 36,983 shares of the business services provider’s stock worth $1,752,000 after acquiring an additional 984 shares during the last quarter. Millennium Management LLC boosted its holdings in ABM Industries by 2.2% during the first quarter. Millennium Management LLC now owns 79,533 shares of the business services provider’s stock valued at $3,767,000 after acquiring an additional 1,734 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of ABM Industries by 5.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,038 shares of the business services provider’s stock valued at $8,527,000 after purchasing an additional 8,704 shares during the last quarter. Finally, Jane Street Group LLC grew its position in shares of ABM Industries by 592.0% in the first quarter. Jane Street Group LLC now owns 140,201 shares of the business services provider’s stock valued at $6,640,000 after purchasing an additional 119,942 shares during the last quarter. 91.62% of the stock is currently owned by institutional investors.
Insiders Place Their Bets In related news, COO Rene Jacobsen sold 31,034 shares of the stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $44.12, for a total value of $1,369,220.08. Following the completion of the transaction, the chief operating officer owned 51,714 shares of the company’s stock, valued at $2,281,621.68. This represents a 37.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.90% of the stock is currently owned by insiders.
ABM Industries Stock Performance Shares of NYSE ABM opened at $38.54 on Tuesday. The business has a fifty day simple moving average of $42.47 and a 200 day simple moving average of $43.56. The company has a current ratio of 1.50, a quick ratio of 1.50 and a debt-to-equity ratio of 0.93. The firm has a market capitalization of $2.26 billion, a price-to-earnings ratio of 15.17 and a beta of 0.74. ABM Industries Incorporated has a one year low of $36.96 and a one year high of $52.94.
ABM Industries (NYSE:ABM – Get Free Report) last posted its quarterly earnings results on Tuesday, March 10th. The business services provider reported $0.83 earnings per share for the quarter, missing analysts’ consensus estimates of $0.87 by ($0.04). The business had revenue of $2.24 billion for the quarter, compared to analyst estimates of $2.19 billion. ABM Industries had a return on equity of 11.77% and a net margin of 1.78%.The firm’s quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.87 EPS. ABM Industries has set its FY 2026 guidance at 3.850-4.150 EPS. Sell-side analysts expect that ABM Industries Incorporated will post 3.71 EPS for the current year.
ABM Industries Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Monday, May 4th. Stockholders of record on Thursday, April 2nd will be given a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Thursday, April 2nd. ABM Industries’s payout ratio is 45.67%.
Analyst Ratings Changes Several equities research analysts have recently issued reports on ABM shares. Wall Street Zen downgraded shares of ABM Industries from a “buy” rating to a “hold” rating in a research note on Saturday, December 13th. Truist Financial reduced their price target on shares of ABM Industries from $47.00 to $45.00 and set a “hold” rating for the company in a report on Wednesday, March 11th. Weiss Ratings restated a “hold (c)” rating on shares of ABM Industries in a research report on Wednesday, January 21st. Robert W. Baird dropped their price objective on shares of ABM Industries from $52.00 to $45.00 and set a “neutral” rating on the stock in a report on Wednesday, March 11th. Finally, Maxim Group raised shares of ABM Industries from a “hold” rating to a “buy” rating and set a $50.00 price objective for the company in a research report on Wednesday, March 11th. One equities research analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $46.25.
Get Our Latest Analysis on ABM
ABM Industries Company Profile (Free Report)
ABM Industries Incorporated is a leading provider of integrated facility services, offering a comprehensive suite of solutions designed to support the operation, maintenance and enhancement of commercial properties. The company’s core services include janitorial and custodial maintenance, HVAC and mechanical systems support, electrical and lighting solutions, and energy optimization. Additional offerings span parking management, security services, landscaping, and specialized support such as technical solutions and sustainability consulting.
Serving a diverse range of markets, ABM caters to clients in commercial real estate, aviation, healthcare, manufacturing, education, government entities, and technology campuses.
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A month has gone by since the last earnings report for ABM Industries (ABM - Free Report) . Shares have lost about 4.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is ABM Industries due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for ABM Industries Incorporated before we dive into how investors and analysts have reacted as of late.
ABM Industries Misses Q1 Earnings EstimatesABM reported mixed first-quarter fiscal 2026 results. Earnings per share (EPS) missed the Zacks Consensus Estimate, while revenues beat the same.
ABM’s EPS (excluding 19 cents from non-recurring items) was 83 cents, which missed the Zacks Consensus Estimate by 4.6% and declined 4.6% year over year. Total revenues of $2.3 billion surpassed the consensus mark by 1.3% and gained 6.1% from the year-ago quarter.
ABM’s Segmental RevenuesThe Business & Industry segment’s revenues gained 4.1% on a year-over-year basis to $1.1 billion, beating our estimate of $1 billion. The education segment’s revenues were $228.7 million, up 1.5% from the year-ago quarter. It missed our anticipated figure of $229.8 million.
The Manufacturing & Distribution segment’s revenues increased 7.1% from the year-ago quarter to $422.3 million, meeting our estimated figure. The Aviation segment’s revenues surged 10.2% from the year-ago quarter to $297.7 million, missing our expectation of $284.6 million.
Technical solutions gained 13.6% from the first quarter of fiscal 2025 to $229.7 million. The metric fell short of our $239.5 million estimate.
Profitability Performance of ABMAdjusted EBITDA was $117.8 million, dipping 2.3% from the year-ago quarter. The adjusted EBITDA margin was 5.2%, declining 50 basis points from the first-quarter fiscal 2025.
ABM’s Balance Sheet & Cash FlowThe company exited the first quarter of fiscal 2026 with cash and cash equivalents of $100.4 million compared with $104.1 million at the end of the preceding quarter. The long-term debt (net) was $1.6 billion compared with $1.5 billion reported in the fourth quarter of fiscal 2025. Net cash generated by operating activities was $62 million for the quarter. The free cash flow was $48.9 million.
ABM’s FY26 GuidanceFor fiscal 2026, ABM expects its adjusted EPS to be $3.85-$4.15. The mid-point of the guided range ($4) is lower than the Zacks Consensus Estimate of $4.08.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.
VGM ScoresAt this time, ABM Industries has a average Growth Score of C, a score with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ABM Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
ROSEMONT, Ill., April 22, 2026 (GLOBE NEWSWIRE) -- ISSA, the association for cleaning and facility solutions, today announced that ABM (NYSE: ABM), a leading provider of facility, engineering, and infrastructure solutions, has become the first organization to achieve the CIMS Green Building + Sustainability Certification with Honors, the highest level of certification offered within ISSA’s Cleaning Industry Management Standard (CIMS) program. This milestone not only reinforces ABM’s commitment to environmental stewardship but also establishes a new benchmark for sustainable practices across the cleaning and facility solutions industries.
Administered by ISSA, CIMS Green Building + Sustainability Certification with Honors represents the gold standard for organizations seeking to validate their environmental performance, resource conservation, and commitment to health and safety. Notably, it is recognized by the U.S. Green Building Council within the LEED-EB O&M v5 standard, further reinforcing its credibility and value in advancing market adoption of sustainable practices. The “with Honors” designation signifies the highest level of achievement, recognizing organizations that exceed rigorous criteria and demonstrate exceptional, measurable outcomes.
“ABM’s achievement marks a defining moment for our industry,” said ISSA Executive Director Kim Althoff. “As the first organization to earn CIMS Green Building + Sustainability Certification with Honors, ABM is setting a powerful example of what leadership in sustainability looks like in action. This accomplishment raises the bar for our more than 1,300 BSC members and the industry at large.”
Through the comprehensive assessment process, ABM was evaluated on a wide range of criteria, including sustainable procurement, waste reduction, energy efficiency, and organizational commitment to environmental responsibility, while meeting the five core pillars of the CIMS standard: Green Cleaning Policy; Cleaning Practices & Materials; High-Performance Equipment; Indoor Environmental Quality; and Management Commitment.
Earning the certification with Honors signals to customers, stakeholders, and employees that ABM operates at the highest level of sustainability performance and operational excellence.
“At ABM, sustainability isn’t a standalone initiative -- it’s embedded in how we operate, how we serve our clients, and how we measure success,” said ABM SVP, Client Experience and Operations Support Bob Clarke. “Being the first company globally to earn the CIMS GB Sustainability with Honors certification reflects the rigor and accountability we bring to our cleaning operations across our entire enterprise. ABM is fully committed to helping our customers reduce environmental impact, support healthier spaces, and achieve their own sustainability goals.”
ISSA’s CIMS program helps organizations implement best practices, improve service delivery, and achieve operational efficiencies while prioritizing environmental and social responsibility. As sustainability continues to be a critical focus across industries, certifications like CIMS Sustainability provide a trusted framework for measurable progress, and ABM’s achievement sets a new standard for others to follow.
For more information about ISSA and the CIMS program, visit https://cims.issa.com/cims-sustainability/.
Learn more about how ABM Industries is turning CIMS into a competitive advantage.
About ISSA
ISSA is The Association for the Cleaning and Facility Solutions, representing more than 11,000 member organizations and professionals worldwide—including manufacturers, manufacturer representatives, wholesalers, distributors building service contractors, in-house service providers, residential cleaners, and associate service members. The association is committed to elevating the built environment by providing its members with the business tools they need to promote cleaning as an investment in human health, the environment, and an improved bottom line. Headquartered in Rosemont, Ill., USA, the association has regional offices in Milan, Italy; Toronto, Canada; Sydney, Australia; Seoul, South Korea; and Shanghai, China. For more information about ISSA, visit www.issa.com or call 800-225-4772 (North America) or 847-982-0800. Follow us on LinkedIn, Facebook, Instagram, and YouTube.
About ABM
ABM (NYSE: ABM) is one of the world’s largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and more efficient, enhancing the overall occupant experience.
ABM serves a wide range of market sectors including commercial real estate, aviation, mission critical, and manufacturing and distribution. With over $8 billion in annual revenue and a blue-chip client base, ABM delivers innovative technologies and sustainable solutions that enhance facilities and empower clients to achieve their goals. Committed to creating smarter, more connected spaces, ABM is investing in the future to meet evolving challenges and build a healthier, thriving world. ABM: Driving possibility, together.
Recognition highlights ABM Connect as a breakthrough platform transforming facilities into intelligent, data-driven environments April 23, 2026 16:05 ET | Source: ABM Industries Incorporated
NEW YORK, April 23, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility, engineering, and infrastructure solutions, today announced it has been recognized with an Edison Award in the Commercial Technology category for its innovative ABM Connect data intelligence platform.
ABM Connect was recognized for its ability to transform traditional facility operations into intelligent, data-driven ecosystems, unifying data from people, systems, and sensors to deliver real-time visibility, predictive insights, and measurable operational improvements.
“Recognition from the Edison Awards further validates the measurable impact that ABM Connect is having on our clients,” said Scott Salmirs, President and Chief Executive Officer of ABM. “In an industry that has historically lacked unified, real-time data, ABM Connect brings together operational, financial, and performance insights into a single platform so our clients can unlock greater value from their facilities.”
Winning an Edison Award is a mark of distinction, honoring those who push the boundaries of innovation to solve global challenges and improve lives. Named after Thomas Edison, one of history’s greatest inventors, the awards celebrate forward-thinking solutions and bold ideas that shape the future.
The recognition follows ABM’s recent inclusion on Fast Company’s 2026 World’s Most Innovative Companies list, which also highlighted the impact of ABM Connect in elevating facilities into intelligent, data-driven environments.
Transforming Facilities Through Data, Intelligence, and Workforce Enablement
ABM Connect integrates AI, IoT sensors, robotics, and operational data into a centralized platform, creating a single source of truth for facility performance. The platform enables janitorial and engineering operations to inform and enhance one another, connecting task, occupancy, asset, and comfort data to elevate both performance and occupant experience.
With ABM Connect, organizations can:
Anticipate and prevent equipment failures through predictive maintenanceGain real-time visibility across operations, services, and financial performanceDeploy frontline teams based on live demand signalsOptimize energy use and sustainability outcomes through data-driven insights Across complex, high-traffic environments, ABM Connect delivers measurable results. In aviation settings, for example, the platform leverages live flight data to dynamically route services such as wheelchair assistance and cleaning crews, improving efficiency, and enhancing the passenger experience.
Advancing the Future of Facilities Management
ABM’s recognition by the Edison Awards reinforces its broader commitment to modernizing one of the world’s largest and most essential industries. By digitizing workflows and embedding intelligence into daily operations, ABM is helping redefine facilities management as a more predictive, data-driven, and strategic function.
About ABM
ABM (NYSE: ABM) is one of the world’s largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and more efficient, enhancing the overall occupant experience.
ABM serves a wide range of market sectors including commercial real estate, aviation, mission critical, and manufacturing and distribution. With over $8 billion in annual revenue and a blue-chip client base, ABM delivers innovative technologies and sustainable solutions that enhance facilities and empower clients to achieve their goals. Committed to creating smarter, more connected spaces, ABM is investing in the future to meet evolving challenges and build a healthier, thriving world. ABM: Driving possibility, together.
NEW YORK, April 28, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of integrated facility, engineering, and infrastructure solutions, has been selected by Vanderbilt University to deliver its end-to-end ABM Performance Solutions (APS) model at its New York City campus. This effort will preserve and modernize the campus, which is located at the site of the historic General Theological Seminary in Manhattan’s Chelsea neighborhood, with ABM overseeing critical operations throughout renovation, startup and ongoing maintenance phases.
The 150,000 square foot campus will serve as a strategic outpost for Vanderbilt students, alumni, and partners in the Northeast. The university is restoring and modernizing the site to create flexible space for academic programming, professional development, internships, and events. With ABM’s operational oversight, the campus will combine historic character with modern performance standards. Importantly, the General Theological Seminary community will also continue to be served on the campus, honoring its longstanding presence in Chelsea.
“This project represents a unique opportunity to combine historic preservation with next-generation educational infrastructure,” said Scott Camp, President, Education at ABM. “We’re proud to partner with world-renowned Vanderbilt University as it brings its mission to New York City, and to support a campus that will inspire students and alumni while contributing to one of the country’s most dynamic urban communities.”
Scope of Work and Impact
With deep and broad expertise—from cleaning, engineering, and landscaping to EV charging, energy savings, waste/recycling, and athletic field care—ABM is a trusted partner for many of the nation’s leading higher education institutions, currently serving more than 200 colleges and universities.
Through ABM Performance Solutions, ABM will provide Vanderbilt’s New York campus with a comprehensive range of operational services designed to ensure optimal performance, safety, and long-term sustainability, including:
Cleaning, Maintenance and Engineering ServicesGrounds Management and Exterior Restoration SupportSubcontract Oversight (including HVAC, Fire/Life Safety, Elevators, and Pest Control)Event Coordination and Support In addition to daily operations, ABM is working alongside Vanderbilt during the startup phase to ensure seamless integration of building systems and vendor contracts, with a focus on efficiency, safety, and reliability.
Vanderbilt in New York City
Vanderbilt’s New York City initiative builds on the university’s commitment to expanding access to professional experiences and industry partnerships. The campus plans to host Vanderbilt students participating in internships across finance, media, technology, and the arts, while also offering academic programming and networking opportunities for alumni and corporate partners.
With this expansion, Vanderbilt is strengthening its presence in one of the world’s most influential cities, deepening its ties to the Chelsea community, and creating new pathways for student growth and engagement.
“Vanderbilt’s New York campus represents a bold step in expanding opportunities for our students, alumni, and community members,” said James Kellerhouse, Executive Director of Operations & Engagement for Vanderbilt University. “This historic site will be a place where academic excellence, professional growth, and community connection come together. Working with ABM gives us confidence that the campus will not only honor its historic character but also deliver the modern and exceptional environment our community deserves.”
About ABM
ABM (NYSE: ABM) is one of the world’s largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and efficient, enhancing the overall occupant experience.
ABM serves a wide range of market sectors including commercial real estate, aviation, education, mission critical, and manufacturing and distribution. With over $8 billion in annual revenue and a blue-chip client base, ABM delivers innovative technologies and sustainable solutions that enhance facilities and empower clients to achieve their goals. Committed to creating smarter, more connected spaces, ABM is investing in the future to meet evolving challenges and build a healthier, thriving world. ABM: Driving possibility, together.
NEW YORK, May 12, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility, engineering, and infrastructure solutions, today announced it has received a 2026 IABC Gold Quill Award of Excellence for outstanding communications management in recognition of its enterprise-wide brand transformation and repositioning. Widely regarded as one of the highest honors in the communications profession, the recognition highlights ABM’s success in aligning its brand to its broader business strategy and shifting from a traditionally commoditized service provider to a strategic, consultative partner delivering integrated, technology-enabled facility solutions across industries.
The transformation was a foundational brand repositioning designed to better communicate ABM’s evolving value across all audiences, including clients, team members, prospective talent, and investors. Informed by extensive research, the initiative addressed a critical need to shift market perception as ABM expanded its capabilities across both soft and hard services, including engineering, energy, and infrastructure solutions. Through a coordinated “inside-out” approach, ABM mobilized its organization to adopt and activate the new brand, ensuring consistent, audience-specific storytelling across internal, external, and media channels while strengthening market recognition, industry leadership, and team engagement.
“ABM has advanced significantly over the past decade, and we’ve evolved from a commoditized service provider into a strategic, consultative partner delivering integrated, technology-enabled solutions at scale,” said Cary Bainbridge, Chief Marketing Officer at ABM. “This transformation was about aligning our brand with that reality -- ensuring we clearly communicate the full scope of our capabilities and the value we bring to clients in the US, UK, and Ireland. By bringing it to life through new messaging, a modernized identity, and a cohesive brand experience, we’re enabling our teams to tell a stronger, more differentiated story in the market.”
To bring this positioning to life, ABM undertook a comprehensive, research-led effort that included a redesigned brand architecture aligned to its solutions portfolio and close coordination across marketing and communications teams. Together, they developed and launched a new positioning centered on the theme line, “Driving possibility, together,” signifying the collective drive to solve, connect, and grow with clients — not just as providers, but as partners. The transformation introduced updated messaging, a modernized visual identity, a new digital experience, and a multi-channel advertising campaign designed to clearly articulate ABM’s role as a strategic, solutions-driven partner. The rollout was supported by an integrated communications approach spanning leadership and field engagement, global internal communications, media relations, and multi-channel external storytelling to drive consistency and impact across all audiences.
The results of the initiative demonstrate its impact across key audiences. Internal engagement increased significantly, with strong adoption of brand resources and improved understanding of ABM’s value proposition. Externally, the company experienced increased awareness, stronger website engagement, and early indicators of a shift in business mix toward higher-value services, reinforcing the effectiveness of the new positioning.
About ABM
ABM (NYSE: ABM) is one of the world’s largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and more efficient, enhancing the overall occupant experience.
ABM serves a wide range of market sectors including commercial real estate, aviation, mission critical, and manufacturing and distribution. With over $8 billion in annual revenue and a blue-chip client base, ABM delivers innovative technologies and sustainable solutions that enhance facilities and empower clients to achieve their goals. Committed to creating smarter, more connected spaces, ABM is investing in the future to meet evolving challenges and build a healthier, thriving world. ABM: Driving possibility, together.
NEW YORK, May 21, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility, engineering, and infrastructure solutions, today announced it has earned a 4-Star Employer designation in the 2026 VETS Indexes Employer Awards. This is the Company’s first 4-Star rating and third consecutive year of recognition, reflecting ABM’s continued progress in supporting veterans and the broader military-connected community.
The award was recently announced at the VETS Indexes Employing U.S. Vets Conference in New York City. The VETS Indexes Employer Awards evaluate organizations based on policies, practices, and outcomes across key areas including veteran hiring, development and retention, inclusive culture, and support for military families.
“At ABM, our commitment to veterans is grounded in a deep respect for those who have served and a focus on creating meaningful career pathways,” said Scott Salmirs, President and Chief Executive Officer of ABM. “Veterans bring a strong sense of purpose, leadership, and integrity, and an unmatched level of training and experience. We are committed to creating opportunities where they can continue to apply their skills and expertise to make a real difference. We are humbled to be recognized by VETS Indexes once again for this important work.”
ABM continues to expand its efforts through initiatives like Veterans at ABM, a team member-led impact group that fosters connection, engagement, and career growth for veterans, reservists, and military spouses across the organization.
“Transitioning from military to civilian careers can present real challenges, even for highly skilled individuals,” said Raúl Valentin, Chief Human Resources Officer at ABM. “At ABM, we focus on translating those strengths into meaningful career opportunities, welcoming veterans, investing in their development, and creating an environment where their leadership and adaptability drive value for our clients and our business.”
To learn more about career opportunities at ABM, please visit: https://www.abm.com/careers/partnerships/military
About ABM
ABM (NYSE: ABM) is one of the world’s largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and efficient, enhancing the overall occupant experience.
ABM serves a wide range of market sectors including commercial real estate, aviation, education, mission critical, and manufacturing and distribution. With over $8 billion in annual revenue and a blue-chip client base, ABM delivers innovative technologies and sustainable solutions that enhance facilities and empower clients to achieve their goals. Committed to creating smarter, more connected spaces, ABM is investing in the future to meet evolving challenges and build a healthier, thriving world. ABM: Driving possibility, together.
Conference Call to be Held on June 5, 2026, at 8:30 AM (ET) May 22, 2026 08:00 ET | Source: ABM Industries Incorporated
NEW YORK, May 22, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility solutions, today announced that it will release its fiscal second quarter 2026 financial results on Friday, June 5, 2026, before market open.
ABM will host its quarterly conference call for all interested parties on Friday, June 5, 2026, at 8:30 AM (ET). The live conference call can be accessed via audio webcast at the ‘Investors’ section of the Company’s website, www.abm.com, or by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) approximately 15 minutes prior to the scheduled time.
A supplemental presentation will accompany the webcast on the Company’s website.
A replay will be available approximately three hours after the webcast through June 19, 2026, and can be accessed by dialing (844) 512-2921 and then entering ID # 13759986. A replay link of the webcast will also be archived on the ABM website for 90 days.
ABOUT ABM
ABM (NYSE: ABM) is one of the world’s largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and efficient, enhancing the overall occupant experience.
ABM serves a wide range of market sectors including commercial real estate, aviation, mission critical, and manufacturing and distribution. With over $8 billion in annual revenue and a blue-chip client base, ABM delivers innovative technologies and sustainable solutions that enhance facilities and empower clients to achieve their goals. Committed to creating smarter, more connected spaces, ABM is investing in the future to meet evolving challenges and build a healthier, thriving world. ABM: Driving possibility, together.
For more information, visit www.abm.com.
Contact:
Investor Relations:
Paul Goldberg
212-297-9721 [email protected]
ABM Industries Inc (NYSE: ABM) will report its fiscal second quarter earnings before the opening bell on Friday, June 5.
Wall Street expects the New York City, New York-based company to post its EPS at 88 cents, up 2.3% from the year-ago quarter, on revenue of $2.21 billion, representing 5.2% year-on-year growth.
In May 2026, ABM Industries earned a 4-Star Employer designation in the 2026 VETS Indexes Employer Awards, marking the company’s first 4-Star rating and third consecutive year of recognition.
Shares of ABM Industries rose 1.76% to close at $39.88 on Thursday.
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Revenue increased 8.4% to a second quarter record of $2.3 billion, including organic growth of 6.1% and acquisition growth of 2.3%Record first half new sales bookings of $1.2 billionNet income improved to $43.1 million, or $0.73 per diluted share, as compared to $42.2 million, or $0.67, in the prior year Adjusted net income was $52.9 million, or $0.90 per diluted share, versus $54.1 million, or $0.86, in the prior yearAdjusted EBITDA increased to $131.7 million, versus $125.9 million last yearOperating cash flow was $66.2 million and free cash flow totaled $22.4 million, both well above the prior year NEW YORK, June 05, 2026 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of facility, engineering and infrastructure solutions, today announced financial results for its fiscal second quarter ended April 30, 2026.
"Our second quarter performance was highlighted by organic revenue growth of 6.1% and record first half new sales bookings of $1.2 billion," said Scott Salmirs, President and Chief Executive Officer. "Organic growth was especially strong in Technical Solutions ("ATS") and Aviation. Manufacturing & Distribution's ("M&D") robust growth was driven by healthy organic demand, further boosted by our recent WGNSTAR acquisition, which is performing well and contributing meaningfully to growth. The investments we have made in organic growth and acquisitions, along with our healthy backlog and constructive end-market conditions, have positioned us well for a strong second half."
Mr. Salmirs continued, "Beyond the top line, we executed well in the quarter, resulting in improved margin on a sequential basis and continued solid free cash flow generation, which was up significantly in the first half versus last year. Looking to the second half, we expect meaningfully higher volume in ATS and M&D, as well as improved service mix, especially within ATS. We also expect to benefit from our ongoing cost savings and pricing initiatives. Combined, these factors are expected to drive significant improvement in earnings and margin in the back half of the year."
Mr. Salmirs concluded, "We are encouraged by constructive demand trends across the majority of our end markets, and remain focused on executing with discipline as the broader macroeconomic environment continues to evolve. As such, our fiscal 2026 outlook remains unchanged."
Second Quarter Fiscal 2026 Results
Revenue increased 8.4% year over year to a second quarter record of $2.3 billion, including 6.1% organic growth and 2.3% growth from acquisitions. Revenue growth was led by ATS and Aviation, which grew 27% and 20%, respectively. ATS benefited from strong demand for battery energy storage systems and datacenter-related services, as well as contributions from its recent acquisition, while Aviation’s growth reflected healthy domestic air travel trends and the continued ramp of new contracts, including the recently won London Heathrow contract. M&D increased 17%, driven by acquisitions, recent client wins and ongoing expansions, while Education delivered growth of 2%, benefiting from price escalations. Business & Industry (“B&I”) was essentially flat, as strong growth in its UK operations was largely offset by the exit of certain clients.
Net income was $43.1 million, or $0.73 per diluted share, compared to $42.2 million, or $0.67 per diluted share, in the prior year period. The increase in net income primarily reflects lower tax expense and reduced corporate costs, partially offset by higher interest and amortization expense related to the WGNSTAR acquisition. EPS growth was further driven by the Company’s share repurchase activities earlier in the year. Net income margin was 1.9% versus 2.0% in the prior year.
Segment operating margin was 7.3% compared to 7.9% last year. The change in segment operating margin was driven mainly by the impact of newer contracts that came online last year in M&D and B&I, as well as by weather-related and ramp-up cost inefficiencies in Aviation.
Adjusted net income was $52.9 million, or $0.90 per diluted share, compared to $54.1 million, or $0.86 per diluted share in the prior year period. The year-over-year change primarily reflects the factors discussed above, with per share results benefiting from the Company's share repurchase activities.
Adjusted EBITDA increased to $131.7 million versus $125.9 million last year.
Adjusted results exclude items impacting comparability. A description of items impacting comparability can be found in the “Reconciliation of Non-GAAP Financial Measures” table.
Net cash provided by operating activities was $66.2 million, and free cash flow was $22.4 million, compared to $32.3 million and $15.2 million, respectively, in the prior year period. The improvement year over year primarily reflects strong working capital management and ongoing advancements in the Company’s enterprise resource planning (“ERP”) implementation during the quarter. A reconciliation of net cash provided by (used in) operating activities to free cash flow can be found in the “Reconciliation of Non-GAAP Financial Measures” table.
Leverage & Liquidity
At the end of the second quarter, the Company’s total indebtedness stood at $1.9 billion, including $23.5 million in standby letters of credit, resulting in a total leverage ratio of 3.2x, as defined by the Company's credit facility. Available liquidity was $613.8 million, including $94.9 million in cash and cash equivalents. The Company expects its total leverage ratio to be below 3.0x by fiscal year-end.
Quarterly Cash Dividend
After the quarter’s close, the Board declared a cash dividend of $0.29 per common share, payable on August 3, 2026, to shareholders of record on July 2, 2026.
Outlook
The Company is reaffirming its fiscal 2026 outlook with the following updates. The Company now expects organic revenue growth toward the top end of the 3% to 4% range and total revenue growth toward the top end of the 4% to 5% range. Segment operating margin, defined as total segment operating profit divided by total revenue, is projected toward the low end of the 7.8% to 8.0% range, and adjusted EPS is still expected to be in the range of $3.85 to $4.15. This outlook now reflects the Company's updated approach to providing full year adjusted EPS guidance, which no longer excludes the impact of any prior-year self-insurance adjustments.
Interest expense is now forecast to be approximately $110 million, and the normalized tax rate is expected to be between 29% and 30%, excluding discrete and non-taxable items.
The Company cannot provide a reconciliation of forward-looking non-GAAP segment operating margin or adjusted EPS to the corresponding GAAP measure without unreasonable effort due to the uncertainty of timing and the magnitude of items such as acquisition and integration related costs, legal costs and other settlements. These items are inherently difficult to forecast and may result in a GAAP range that is too large and variable to be meaningful.
Conference Call Information
ABM will host its quarterly conference call for all interested parties on Friday, June 5, 2026, at 8:30 AM (ET). The live conference call can be accessed via audio webcast at the “Investors” section of the Company's website, located at www.abm.com, or by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international) approximately 15 minutes prior to the scheduled time.
A supplemental presentation will accompany the webcast on the Company's website.
A replay will be available approximately three hours after the webcast through June 19, 2026, and can be accessed by dialing (844) 512-2921 and then entering ID #13759986. A replay link of the webcast will also be archived on the ABM website for 90 days.
About ABM
ABM (NYSE: ABM) is one of the world’s largest providers of integrated facility, engineering, and infrastructure solutions. Every day, our over 100,000 team members deliver essential services that make spaces cleaner, safer, and more efficient, enhancing the overall occupant experience.
ABM serves a wide range of market sectors including commercial real estate, aviation, mission critical, and manufacturing and distribution. With over $8 billion in annual revenue and a blue-chip client base, ABM delivers innovative technologies and sustainable solutions that enhance facilities and empower clients to achieve their goals. Committed to creating smarter, more connected spaces, ABM is investing in the future to meet evolving challenges and build a healthier, thriving world. ABM: Driving possibility, together.
For more information, visit www.abm.com
Cautionary Statement under the Private Securities Litigation Reform Act of 1995
This press release contains both historical and forward-looking statements about ABM Industries Incorporated (“ABM”) and its subsidiaries (collectively referred to as “ABM,” “we,” “us,” “our,” or the “Company”). We make forward-looking statements related to future expectations, estimates and projections that are uncertain, and often contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “should,” “target,” or other similar words or phrases. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and assumptions that are difficult to predict. For us, particular uncertainties that could cause our actual results to be materially different from those expressed in our forward-looking statements include: our success depends on our ability to gain profitable business despite competitive market pressures; our results of operations can be adversely affected by labor shortages, turnover, and labor cost increases; we may not be able to attract and retain qualified personnel and senior management we need to support our business; investments in and changes to our businesses, operating structure, or personnel relating to our strategic initiatives, including the implementation of strategic transformations, enhanced business processes, and technology initiatives may not have the desired effects on our financial condition and results of operations; our ability to preserve long-term client relationships is essential to our continued success; our use of subcontractors or joint venture partners to perform work under customer contracts exposes us to liability and financial risk; our international business involves risks different from those we face in the United States that could have an effect on our results of operations and financial condition; decreases in commercial office space utilization due to hybrid work models and increases in office vacancy rates could adversely affect our financial condition; negative changes in general economic conditions, such as recessionary pressures, high interest rates, durable and non-durable goods pricing, changes in energy prices, or changes in consumer goods pricing, could reduce the demand for services and, as a result, reduce our revenue and earnings and adversely affect our financial condition; we may experience breaches of, or disruptions to, our information technology systems or those of our third-party providers or clients, or other compromises of our data that could adversely affect our business; our ongoing implementation of new enterprise resource planning and related boundary systems could adversely impact our ability to operate our business and report our financial results; acquisitions, divestitures, and other strategic transactions could fail to achieve financial or strategic objectives, disrupt our ongoing business, and adversely impact our results of operations; we may not realize the growth opportunities and synergies that are anticipated from the WGNSTAR acquisition; we manage our insurable risks through a combination of third-party purchased policies and self-insurance, and we retain a substantial portion of the risk associated with expected losses under these programs, which exposes us to volatility associated with those risks, including the possibility that changes in estimates to our ultimate insurance loss reserves could result in material charges against our earnings; our risk management and safety programs may not have the intended effect of reducing our liability for personal injury or property loss; unfavorable developments in our class and representative actions and other lawsuits alleging various claims could cause us to incur substantial liabilities; we are subject to extensive legal and regulatory requirements, which could limit our profitability by increasing the costs of legal and regulatory compliance; a significant number of our employees are covered by collective bargaining agreements that could expose us to potential liabilities in relation to our participation in multiemployer pension plans, requirements to make contributions to other benefit plans, and the potential for strikes, work slowdowns or similar activities, and union organizing drives; our business may be materially affected by changes to fiscal and tax policies; negative or unexpected tax consequences could adversely affect our results of operations; future increases in the level of our borrowings and interest rates could affect our results of operations; impairment of goodwill and long-lived assets could have a material adverse effect on our financial condition and results of operations; if we fail to maintain proper and effective internal control over financial reporting in the future, our ability to produce accurate and timely financial statements could be negatively impacted, which could harm our operating results and investor perceptions of our Company and as a result may have a material adverse effect on the value of our common stock; our business may be negatively impacted by adverse weather conditions; catastrophic events, disasters, pandemics, and terrorist attacks could disrupt our services; and actions of activist investors could disrupt our business. For additional information on these and other risks and uncertainties we face, see ABM’s risk factors, as they may be amended from time to time, set forth in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. We urge readers to consider these risks and uncertainties in evaluating our forward-looking statements.
Use of Non-GAAP Financial Information
To supplement ABM’s consolidated financial information, the Company has presented net income and net income per diluted share as adjusted for items impacting comparability for the second quarter and first six months of fiscal years 2026 and 2025. These adjustments have been made with the intent of providing financial measures that give management and investors a better understanding of the underlying operational results and trends as well as ABM’s operational performance. In addition, the Company has presented earnings before interest, taxes, depreciation and amortization, and excluding items impacting comparability (adjusted EBITDA) for the second quarter and first six months of fiscal years 2026 and 2025. Adjusted EBITDA is among the indicators management uses as a basis for planning and forecasting future periods. The Company also presents total segment operating profit, which is the sum of the segment operating profit of each of its segments, and total segment operating margin, defined as total segment operating profit divided by total revenue, because management believes they are useful as they represent the aggregate value of income/profit created by its segments and exclude items not directly related to the segments for performance evaluation purposes. The Company has also presented Free Cash Flow which is defined as net cash provided by (used in) operating activities less additions to property, plant and equipment. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for financial statements prepared in accordance with accounting principles generally accepted in the United States of America. (See accompanying financial tables for supplemental financial data and corresponding reconciliations to certain GAAP financial measures.)
We round amounts to millions but calculate all percentages and per-share data from the underlying whole-dollar amounts. As a result, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. Unless otherwise noted, all references to years are to our fiscal year, which ends on October 31.
CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)
Three Months Ended April 30, (in millions, except per share amounts) 2026 2025 Increase / (Decrease)Revenues$2,290.0 $2,111.7 8.4%Operating expenses 2,013.0 1,841.0 9.3%Selling, general and administrative expenses 171.1 175.1 (2.3)%Restructuring and related expenses 3.1 — NM*Amortization of intangible assets 15.9 13.2 20.5%Operating profit 86.9 82.3 5.5%Income from unconsolidated affiliates 1.0 1.4 (28.6)%Interest expense (28.1) (23.9) (17.6)%Income before income taxes 59.7 59.8 (0.1)%Income tax provision (16.6) (17.6) 5.3%Net income$43.1 $42.2 2.1%Net income per common share Basic$0.73 $0.67 9.0%Diluted$0.73 $0.67 9.0%Weighted-average common and common equivalent shares outstanding Basic 58.9 62.6 Diluted 59.1 62.9 Dividends declared per common share$0.290 $0.265 *Not meaningful (due to variance greater than or equal to +/-100%) ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED)
Six Months Ended April 30, (in millions, except per share amounts) 2026 2025 Increase / (Decrease)Revenues$4,533.5 $4,226.6 7.3%Operating expenses 3,996.5 3,696.1 8.1%Selling, general and administrative expenses 340.9 344.1 (1.0)%Restructuring and related expenses 6.8 — NM*Amortization of intangible assets 27.9 26.5 5.2%Operating profit 161.6 159.9 1.1%Income from unconsolidated affiliates 2.4 2.1 12.8%Interest expense (52.1) (46.8) (11.4)%Income before income taxes 111.9 115.2 (2.9)%Income tax provision (30.0) (29.5) (1.9)%Net income$81.8 $85.8 (4.6)%Net income per common share Basic$1.37 $1.37 —%Diluted$1.37 $1.36 0.7%Weighted-average common and common equivalent
shares outstanding Basic 59.6 62.7 Diluted 59.9 63.1 Dividends declared per common share$0.580 $0.530 *Not meaningful (due to variance greater than or equal to +/-100%)
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)
Three Months Ended April 30,(in millions) 2026 2025 Net cash provided by operating activities$66.2 $32.3 Additions to property, plant and equipment (43.8) (17.1)Purchase of businesses, net of cash acquired (242.5) — Other 0.5 — Net cash used in investing activities$(285.8) $(17.1)Proceeds from issuance of share-based compensation awards, net 1.2 1.1 Repurchases of common stock, including excise taxes (3.0) — Dividends paid (17.0) (16.5)Deferred financing costs paid (1.3) (8.0)Borrowings from debt 722.5 338.9 Repayment of borrowings from debt (488.2) (327.0)Changes in book cash overdrafts 2.1 (5.5)Repayment of finance lease obligations (1.2) (1.1)Net cash provided by (used in) financing activities$215.1 $(18.1)Effect of exchange rate changes on cash and cash equivalents (0.9) 2.7 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
SELECTED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)
Six Months Ended April 30,(in millions) 2026 2025 Net cash provided by (used in) operating activities$128.2 $(73.9)Additions to property, plant and equipment (57.0) (33.8)Purchase of businesses, net of cash acquired (242.1) 1.9 Other 0.7 0.4 Net cash used in investing activities$(298.4) $(31.6)Taxes withheld from issuance of share-based compensation awards, net (9.9) (9.6)Repurchases of common stock, including excise taxes (94.7) (21.3)Dividends paid (34.2) (32.9)Deferred financing costs paid (1.3) (8.0)Borrowings from debt 1,077.0 918.8 Repayment of borrowings from debt (779.2) (700.0)Changes in book cash overdrafts 4.7 (46.0)Repayment of finance lease obligations (2.3) (2.2)Net cash provided by financing activities$159.9 $98.7 Effect of exchange rate changes on cash and cash equivalents 1.1 1.0 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED)
(in millions)April 30, 2026 October 31, 2025ASSETS Current assets Cash and cash equivalents$94.9 $104.1Trade accounts receivable 1,517.2 1,471.1Costs incurred in excess of amounts billed 174.7 193.7Prepaid expenses 169.9 91.2Other current assets 77.2 78.6Total current assets 2,034.0 1,938.7Other investments 30.9 48.6Property, plant and equipment 209.7 177.2Right-of-use assets 90.0 95.1Other intangible assets, net of accumulated amortization 350.0 243.2Goodwill 2,738.4 2,591.1Other noncurrent assets 194.1 175.5Total assets$5,647.0 $5,269.5LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Current portion of long-term debt, net$41.8 $29.4Trade accounts payable 416.5 401.2Accrued compensation 217.0 195.0Accrued taxes—other than income 47.9 48.1Deferred Revenue 99.8 74.7Insurance claims 206.8 200.8Income taxes payable 3.8 4.0Current portion of lease liabilities 28.3 28.2Other accrued liabilities 329.7 324.1Total current liabilities 1,391.6 1,305.7Long-term debt, net 1,821.6 1,537.1Long-term lease liabilities 78.7 83.7Deferred income tax liability, net 71.5 39.9Noncurrent insurance claims 472.2 459.3Other noncurrent liabilities 59.1 54.3Noncurrent income taxes payable 4.1 3.9Total liabilities 3,898.7 3,483.8Total stockholders’ equity 1,748.4 1,785.6Total liabilities and stockholders’ equity$5,647.0 $5,269.5 ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)
Three Months Ended April 30, Increase/ (Decrease)(in millions) 2026 2025 Revenues Business & Industry$1,015.8 $1,015.5 —%Manufacturing & Distribution 463.8 398.1 16.5%Aviation 310.8 260.1 19.5%Education 232.2 227.8 1.9%Technical Solutions 267.3 210.2 27.2%Total Revenues$2,290.0 $2,111.7 8.4%Operating profit Business & Industry$76.7 $83.0 (7.6)%Manufacturing & Distribution 40.6 39.9 1.9%Aviation 16.3 16.5 (0.9)%Education 16.4 13.8 18.8%Technical Solutions 16.8 13.4 25.0%Segment operating profit$166.9 $166.6 0.1%Segment operating margin 7.3% 7.9% Corporate (79.0) (82.9) 4.7%Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions (1.0) (1.4) 28.6%Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions — (0.1) 33.6%Total operating profit 86.9 82.3 5.5%Income from unconsolidated affiliates 1.0 1.4 (28.6)%Interest expense (28.1) (23.9) (17.6)%Income before income taxes 59.7 59.8 (0.1)%Income tax provision (16.6) (17.6) 5.3%Net income$43.1 $42.2 2.1% ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
REVENUES AND OPERATING PROFIT BY SEGMENT (UNAUDITED)
Six Months Ended April 30, Increase/ (Decrease)(in millions) 2026 2025 Revenues Business & Industry$2,080.9 $2,038.4 2.1%Manufacturing & Distribution 886.1 792.4 11.8%Aviation 608.5 530.2 14.8%Education 460.9 453.2 1.7%Technical Solutions 497.1 412.4 20.5%Total Revenues$4,533.5 $4,226.6 7.3%Operating profit Business & Industry$156.4 $162.4 (3.7)%Manufacturing & Distribution 77.0 79.3 (2.9)%Aviation 28.9 28.7 0.6%Education 38.0 27.8 36.6%Technical Solutions 25.2 30.0 (15.9)%Segment operating profit$325.4 $328.2 (0.8)%Segment operating margin 7.2% 7.8% Corporate (160.9) (166.1) 3.1%Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions (2.4) (2.1) (12.8)%Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions (0.6) (0.1) NM* Total operating profit 161.6 159.9 1.1%Income from unconsolidated affiliates 2.4 2.1 12.8%Interest expense (52.1) (46.8) (11.4)%Income before income taxes 111.9 115.2 (2.9)%Income tax provision (30.0) (29.5) (1.9)%Net income$81.8 $85.8 (4.6)% *Not meaningful (due to variance greater than or equal to +/-100%)
ABM INDUSTRIES INCORPORATED AND SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(in millions, except per share amounts)
Three Months Ended April 30, Six Months Ended April 30, 2026 2025 2026 2025 Reconciliation of Net Income to Adjusted Net Income Net income$43.1 $42.2 $81.8 $85.8 Items impacting comparability (a)(b) Restructuring and related (c) 3.1 — 6.8 — Legal costs and other settlements (0.3) 0.3 (0.3) 5.1 Acquisition and integration related costs (d) 5.5 3.4 8.2 6.8 Transformation initiative costs (e) 5.3 10.7 14.2 19.0 Other (f) — 2.2 0.7 2.2 Total items impacting comparability 13.7 16.6 29.7 33.0 Income tax impact (g) (3.8) (4.7) (8.2) (9.4)Items impacting comparability, net of taxes 9.9 11.9 21.5 23.6 Adjusted net income$52.9 $54.1 $103.3 $109.4 Three Months Ended April 30, Six Months Ended April 30, 2026 2025 2026 2025 Reconciliation of Net Income to Adjusted EBITDA Net Income$43.1 $42.2 $81.8 $85.8 Items impacting comparability 13.7 16.6 29.7 33.0 Income taxes provision 16.6 17.6 30.0 29.5 Interest expense 28.1 23.9 52.1 46.8 Depreciation and amortization 30.2 25.7 55.9 51.6 Adjusted EBITDA$131.7 $125.9 $249.5 $246.6 Net Income margin as a % of revenues 1.9% 2.0% 1.8% 2.0% Three Months Ended April 30, Six Months Ended April 30, 2026
2025
2026
2025
Reconciliation of Net Income per Diluted Share to Adjusted Net Income per Diluted Share Net income per diluted share$0.73 $0.67 $1.37 $1.36Items impacting comparability, net of taxes 0.17 $0.19 0.36 0.37Adjusted net income per diluted share$0.90 $0.86 $1.72 $1.73Diluted shares 59.1 62.9 59.9 63.1 Three Months Ended April 30, Six Months Ended April 30, 2026 2025 2026 2025 Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow Net cash provided by (used in) operating activities$66.2 $32.3 $128.2 $(73.9)Additions to property, plant and equipment (43.8) (17.1) (57.0) (33.8)Free cash flow$22.4 $15.2 $71.2 $(107.8) (a) The Company adjusts income to exclude the impact of certain items that are unusual, non-recurring, or otherwise do not reflect management's views of the underlying operational results and trends of the Company.
(b) After communications with the staff of the Securities and Exchange Commission, we have revised the definition of our non-GAAP financial measures, including adjusted net income, adjusted earnings per share, and adjusted EBITDA, to no longer exclude the positive or negative impact of “prior year self-insurance adjustments”. Prior year self-insurance adjustments reflect the net changes to our self-insurance reserves for our general liability, workers’ compensation, automobile, and health insurance programs, related to claims from incidents that occurred in previous years. This definitional change has been applied to second quarter 2026 and first six months of 2026 results and retroactively to all presented periods to ensure comparability.
(c) Represents costs associated with restructuring program to further streamline our operations and improve the efficiency of our support functions.
(d) Represents acquisition and integration related costs associated with recent acquisitions.
(e) Represents discrete transformational costs that primarily consist of general and administrative costs for developing technological needs and alternatives, project management, testing, training and data conversion, consulting and professional fees for i) new enterprise resource planning system, ii) client facing technology, iii) workforce management tools and iv) data analytics. These costs are not expected to recur beyond the deployment of these initiatives.
(f) Three and six months ended April 30, 2025 include a parking tax audit settlement related to prior years.
(g) The Company's tax impact is calculated using the federal and state statutory rate of 27.72% and 28.11% for FY2026 and FY2025, respectively. We calculate tax from the underlying whole-dollar amounts, as a result, certain amounts may not recalculate based on reported numbers due to rounding.
ABM Industries (ABM - Free Report) came out with quarterly earnings of $0.9 per share, missing the Zacks Consensus Estimate of $0.92 per share. This compares to earnings of $0.86 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -2.05%. A quarter ago, it was expected that this provider of cleaning and other maintenance services for commercial buildings, hospitals and airports would post earnings of $0.87 per share when it actually produced earnings of $0.83, delivering a surprise of -4.6%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
ABM Industries, which belongs to the Zacks Business - Services industry, posted revenues of $2.29 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 2.95%. This compares to year-ago revenues of $2.11 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ABM Industries shares have lost about 5.7% since the beginning of the year versus the S&P 500's gain of 10.8%.
What's Next for ABM Industries?While ABM Industries has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ABM Industries was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.98 on $2.32 billion in revenues for the coming quarter and $3.94 on $9.18 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Business - Services is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Concentrix Corporation (CNXC - Free Report) , is yet to report results for the quarter ended May 2026.
This company is expected to post quarterly earnings of $2.64 per share in its upcoming report, which represents a year-over-year change of -2.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Concentrix Corporation's revenues are expected to be $2.47 billion, up 2.3% from the year-ago quarter.
Cintas’ $5.2B UniFirst Bid Ignites the Battle for Route DominanceABM Industries NYSE: ABM reported stronger second-quarter fiscal 2026 revenue growth and record first-half new sales bookings, while management maintained its full-year adjusted earnings outlook and said it expects a stronger margin performance in the second half of the year.
President and Chief Executive Officer Scott Salmirs said ABM had “a strong quarter,” citing 6.1% organic revenue growth and first-half new sales bookings of $1.2 billion, which he called a new record for the company. Growth was led by ABM Technical Solutions and Aviation, while Manufacturing and Distribution benefited from both underlying demand and the WGNSTAR acquisition.
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ABM Industries Stock: A Dividend King at a Discount“As we look ahead to the second half, the setup is compelling,” Salmirs said, pointing to expected volume growth in Technical Solutions and Manufacturing and Distribution, an improving service mix in Technical Solutions, and cost discipline and pricing actions.
Revenue rises to second-quarter record Executive Vice President and Chief Financial Officer David Orr said revenue increased 8.4% year over year to a second-quarter record of $2.3 billion. That included 6.1% organic growth and a 2.3% contribution from acquisitions, primarily WGNSTAR.
Dividend King ABM Industries is on Track for New HighsOrr said consolidated organic growth was the strongest ABM has delivered since the third quarter of 2022. By segment, Technical Solutions revenue grew 27%, Aviation rose 20%, Manufacturing and Distribution increased 17%, Education grew 2%, and Business & Industry was essentially flat.
Net income for the quarter was $43.1 million, or $0.73 per diluted share, compared with $42.2 million, or $0.67 per diluted share, in the prior-year period. Adjusted net income was $52.9 million, or $0.90 per diluted share, compared with $54.1 million, or $0.86 per diluted share, last year. Orr said the year-over-year changes primarily reflected higher interest and amortization expense, offset by lower tax expense and corporate costs, while per-share results were helped by recent share repurchases.
Adjusted EBITDA increased $5.8 million from the prior year to $131.7 million. Segment operating margin improved 20 basis points sequentially to 7.3%, but was down 60 basis points from a year earlier. Orr attributed the year-over-year decline mainly to the impact of contracts that came online last year in Manufacturing and Distribution and Business & Industry, as well as higher amortization expense tied to WGNSTAR.
Segment trends show strength in Technical Solutions, Aviation and M&D In Business & Industry, revenue was essentially flat at $1 billion. Orr said strength in ABM’s U.K. markets was partially offset by the mid-quarter exit of a large U.K.-based client and other client exits, particularly on the West Coast. Operating profit was $76.7 million and margin was 7.6%, down from $83 million and 8.2% a year earlier.
During the question-and-answer portion of the call, Salmirs said West Coast office markets remain pressured, particularly in technology-heavy cities such as Los Angeles, San Francisco and Seattle. He said competitors have made pricing and margin decisions that do not meet ABM’s thresholds. Orr said the exit of the large U.K. client would account for about 300 basis points of growth impact for Business & Industry in the second half.
Aviation revenue increased 20% to $310.8 million, supported by healthy travel demand and new contract wins, particularly a Heathrow contract. Operating profit was $16.3 million, with a margin of 5.3%, compared with $16.5 million and 6.3% last year. Orr cited weather-related costs, contract scope changes, TSA-driven operational disruptions and ramp-up costs for Heathrow as pressures on profit and margin.
Manufacturing and Distribution revenue rose 17% to $463.8 million, including 7% organic growth and 9% growth from WGNSTAR. Operating profit was $40.6 million and margin was 8.8%, compared with $39.9 million and 10% last year. Orr said margin was affected by the mix of newer contracts and $4 million of incremental amortization expense related to WGNSTAR. Excluding that incremental amortization, he said margin was 9.6%.
Education revenue grew 2% to $232.2 million, primarily from escalations. Operating profit increased 19% to $16.4 million, and margin expanded 100 basis points to 7%, driven by labor efficiency and escalation management.
Technical Solutions revenue grew 27% to $267.3 million, including 22% organic growth. Orr said the segment benefited from data center activity, battery energy storage system work and HVAC projects. Operating profit was $16.8 million, with margin of 6.3%, compared with $13.4 million and 6.4% last year.
WGNSTAR expands semiconductor reach Salmirs said the WGNSTAR acquisition has strengthened ABM’s position in semiconductor fabrication environments and is “performing well.” He said ABM secured tens of millions of dollars in new business during the quarter and delivered high double-digit organic revenue growth across its semiconductor market.
Responding to an analyst question, Salmirs said ABM previously had a strong presence in semiconductor facilities outside the fabrication area, while WGNSTAR operates inside the fabrication environment. He described the combination as making ABM a more seamless provider for semiconductor clients.
Salmirs said ABM has more than 60 semiconductor clients and operates at more than 300 sites. He added that ABM is working with 75% of U.S. and European fab makers by capacity and with seven of the 10 major OEMs. “We see in semiconductor space, double-digit growth continuing for a while,” he said.
Cash flow improves, leverage reduction remains priority ABM ended the quarter with total indebtedness of $1.9 billion, including $23 million in standby letters of credit. Total debt to pro forma adjusted EBITDA was 3.2 times. Available liquidity was $614 million, including $95 million in cash and cash equivalents.
Orr said the WGNSTAR acquisition pushed leverage above three times, as expected, and ABM expects to reduce leverage below three times by the end of the fiscal year. He said near-term capital allocation priority is debt repayment, though the company will remain flexible if value-creation opportunities arise.
Second-quarter cash flow from operations was $66.2 million, and free cash flow was $22.4 million. For the first six months, cash flow from operations was $128.2 million and free cash flow was $71.2 million, compared with a use of cash of $73.9 million and negative free cash flow of $107.8 million in the prior-year period. Orr said the approximately $180 million year-over-year improvement reflected working capital management and progress on ERP stabilization.
Full-year outlook maintained ABM maintained its fiscal 2026 adjusted earnings per share outlook of $3.85 to $4.15. Orr said ABM now expects organic revenue growth to be toward the high end of its 3% to 4% range. The WGNSTAR acquisition is expected to add about one additional point of revenue growth, bringing total growth to the high end of ABM’s 4% to 5% range.
Segment operating margin is expected to be toward the low end of the company’s 7.8% to 8% range, with margin expansion weighted toward the second half of the year. Orr said the improvement is expected to be driven primarily by better mix and volume in Technical Solutions.
Interest expense is now forecast at approximately $110 million because of higher-than-expected interest rates, which Orr said ABM plans to offset with additional cost actions. The company continues to expect free cash flow of about $250 million in 2026 before transformation and integration costs, the final RavenVolt earn-out and any incremental restructuring.
Salmirs said ABM’s end markets remain “largely constructive,” though the company is monitoring macroeconomic uncertainty and the potential impact of rising fuel costs on airline clients. He said ABM remains focused on deleveraging, disciplined capital allocation and margin improvement in the second half.
About ABM Industries NYSE: ABMABM Industries Incorporated is a leading provider of integrated facility services, offering a comprehensive suite of solutions designed to support the operation, maintenance and enhancement of commercial properties. The company's core services include janitorial and custodial maintenance, HVAC and mechanical systems support, electrical and lighting solutions, and energy optimization. Additional offerings span parking management, security services, landscaping, and specialized support such as technical solutions and sustainability consulting.
Serving a diverse range of markets, ABM caters to clients in commercial real estate, aviation, healthcare, manufacturing, education, government entities, and technology campuses.
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For the quarter ended April 2026, ABM Industries (ABM - Free Report) reported revenue of $2.29 billion, up 8.4% over the same period last year. EPS came in at $0.90, compared to $0.86 in the year-ago quarter.
The reported revenue represents a surprise of +2.95% over the Zacks Consensus Estimate of $2.22 billion. With the consensus EPS estimate being $0.92, the EPS surprise was -2.05%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ABM Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Business & Industry: $1.02 billion versus the two-analyst average estimate of $1.04 billion. The reported number represents a year-over-year change of 0%.Revenues- Aviation: $310.8 million versus the two-analyst average estimate of $284.46 million. The reported number represents a year-over-year change of +19.5%.Revenues- Education: $232.2 million versus $234.56 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +1.9% change.Revenues- Manufacturing & Distribution: $463.8 million versus $427.83 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +16.5% change.Revenues- Technical Solutions: $267.3 million compared to the $230.46 million average estimate based on two analysts. The reported number represents a change of +27.2% year over year.Operating profit- Business & Industry: $76.7 million versus the two-analyst average estimate of $83.8 million.Operating profit- Aviation: $16.3 million versus $16.12 million estimated by two analysts on average.Operating profit- Manufacturing & Distribution: $40.6 million versus $40.78 million estimated by two analysts on average.Operating profit- Technical Solutions: $16.8 million compared to the $16.54 million average estimate based on two analysts.Operating profit- Education: $16.4 million versus the two-analyst average estimate of $16.68 million.View all Key Company Metrics for ABM Industries here>>>
Shares of ABM Industries have returned -2.2% over the past month versus the Zacks S&P 500 composite's +5.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
ABM Industries Incorporated delivered Q2 2026 results with 8.4% revenue growth and adjusted EPS above expectations, supporting a soft Buy rating. Segment performance was mixed: strong growth in Manufacturing & Distribution and Technical Solutions, but margin pressure and flat profits in Business & Industry and Aviation. Management reaffirmed FY26 guidance: 4–5% revenue growth, EPS of $3.85–$4.15, and ongoing transformation via ELEVATE and restructuring initiatives.
Key Takeaways ABM kept FY26 adjusted EPS at $3.85-$4.15 while lifting growth outlook toward the high end.ABM expects back-half margin lift from higher ATS volume and a shift toward design & engineering work.ABM flagged B&I pressure from client exits and West Coast offices, but expects a cleaner margin profile. ABM Industries Incorporated (ABM - Free Report) used its fiscal second-quarter call to make a forward-looking case centered less on the quarter’s headline growth and more on what management sees as a stronger second half.
Executives pointed to a healthier mix in Technical Solutions, continued momentum in Manufacturing & Distribution, and improving cash flow as the main reasons they left full-year adjusted earnings guidance unchanged.
ABM Leans on Back-Half SetupPresident and chief executive officer Scott Salmirs said organic revenue growth of 6.1% and record first-half bookings of $1.2 billion showed that demand remained solid across much of the portfolio. He put particular emphasis on Technical Solutions, Aviation and the contribution from the WGNSTAR acquisition.
Salmirs also made the second half the focal point of the call. He said ATS and M&D should see meaningfully higher volume, while ATS should also benefit from a better service mix as project execution moves toward more design and engineering work.
That framing mattered because ABM’s quarter showed strong sales growth but still left investors watching margin progression closely. Management’s core message was that mix, pricing and cost actions are expected to do more of the earnings work later in the year.
ABM Industries Keeps Full-Year OutlookExecutive vice president and chief financial officer David Orr said ABM still expects adjusted earnings per share of $3.85 to $4.15 for fiscal 2026, while organic revenue growth is now expected toward the high end of the 3% to 4% range and total growth toward the high end of 4% to 5%.
Orr also said segment operating margin should land toward the low end of the 7.8% to 8.0% range. He tied that view to a stronger back-half ATS mix and volume, while noting that higher interest rates pushed projected interest expense to about $110 million.
That combination left the call balanced in tone. Management raised its growth posture within the range, but not its earnings range, signaling that improved operating execution still needs to offset financing pressure and earlier margin drag.
ABM Sees ATS and M&D Doing MoreTechnical Solutions was central to the call. Revenues rose 27% in the quarter, helped by data center work, battery energy storage systems and HVAC project activity, but profitability was held back by a heavier equipment and infrastructure mix.
In a Q&A with William Blair, Orr said large battery storage projects supported growth but carried lower margins because of their equipment-heavy profile. Salmirs added that the back half should include more design and engineering work, which he said has a stronger margin profile.
Manufacturing & Distribution also remained a key support. Orr said the segment posted 17% revenue growth, including 7% organic growth and 9% from WGNSTAR, while management continued to describe semiconductor demand and client expansions as meaningful tailwinds.
ABM Industries Addresses B&I PressureBusiness & Industry was the clearest soft spot on the call. Salmirs said flat organic performance reflected the exit of a large U.K. client and pressure in West Coast office markets, where ABM has been unwilling to match uneconomic competitive pricing.
In response to a Truist Securities question, Orr said the TfL exit alone would account for about 300 basis points of B&I growth impact in the back half. Management nevertheless argued that the client exits should help margins improve as lower-quality work rolls off.
That exchange gave investors more clarity on the second-half growth slowdown embedded in the outlook. ABM is accepting weaker B&I revenues in exchange for a cleaner margin profile.
ABM Highlights Cash Flow and LeverageCash flow was another area of emphasis. Orr said second-quarter operating cash flow reached $66.2 million and free cash flow totaled $22.4 million, while first-half operating cash flow improved by roughly $180 million from the prior year period.
Management linked that improvement to working capital discipline and ERP stabilization. Orr said leverage rose to 3.2 times after the WGNSTAR deal, but the company still expects to finish the fiscal year below 3 times.
Near-term capital allocation remains shaped by that goal. In Q&A, management said debt reduction is the priority, even as it continues to monitor the acquisition pipeline for later in the year or early next year.
ABM Industries Clarifies Risk and DirectionOne of the more important clarifications came around self-insurance adjustments. Orr said ABM now believes operational changes in the insurance program have improved predictability enough for those effects to be included in full-year guidance, a shift Salmirs said reduces a key fourth-quarter concern for investors.
Management also used the call to reinforce its strategic posture. Salmirs pointed to semiconductors, data centers, airport modernization and microgrids as the company’s most attractive growth lanes, while stressing discipline on pricing, contract selection and leverage.
The quarter’s financial results supported that backdrop without fully defining it. ABM posted adjusted earnings of $0.9, missing the Zacks Consensus Estimate of $0.92 by 2.05%. Revenues of $2.29 billion topped the Zacks Consensus Estimate of $2.22 billion, beating the consensus mark by 2.95%.
ABM’s Zacks SignalsABM carries a Zacks Rank #3 (Hold), along with a Value Score of A, Growth Score of B, Momentum Score of D and VGM Score of A. Within the Zacks framework, a Zacks Rank #3 can still be held, while a stronger Style Score indicates more attractive value and growth characteristics than momentum at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The VGM Score of A is favorable because it combines value, growth and momentum factors, but the Zacks Rank remains the primary signal in the system. That rank can change as earnings estimates are revised after the quarter, making post-report estimate trends the key factor to watch.
Key Takeaways ABM shares gained 7.7% over the past month, outperforming declines in the industry and the broader market.ABM's Technical Solutions revenues climbed 27% y/y, aided by data center, HVAC and energy projects.ABM's Aviation and M&D segments delivered solid growth, while higher costs & policy risks remain key concerns. Shares of ABM (ABM - Free Report) have had a decent run over the past month. The stock has risen 7.7% against the industry's 0.9% decline. The Zacks S&P 500 composite fell 0.8% during the said time frame.
ABM has a Growth Score of B. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.
The company’s third-quarter fiscal 2026 earnings are expected to increase 19.5% year over year. Earnings for fiscal 2026 and fiscal 2027 are projected to rise 14.5% and 11.2%, respectively, year over year. Revenues are expected to increase 4.9% in fiscal 2026 and 2.5% in fiscal 2027.
Factors That Bode Well for ABMABM Industries is benefiting from its collective growth across segments, primarily driven by Technical Solutions, Aviation, Manufacturing & Distribution (M&D) and Education. The company reported that Technical Solutions revenues increased 27% year over year. Aviation and M&D revenues grew 20% and 17%, respectively, from the year-ago quarter, while revenues from Education rose 2% year over year during the second quarter of fiscal 2026.
ABM’s Technical Solutions segment benefited from strong demand for data centers, battery energy storage systems and heating, ventilation and air conditioning (HVAC) projects. The company’s Manufacturing & Distribution segment was aided by semiconductor industry investments and technology-sector contract wins. The recent WGNSTAR acquisition has enhanced ABM's capabilities within semiconductor fabrication environments and contributed meaningfully to financial results.
Aviation revenues increased to $310.8 million in the last reported quarter, supported by strong passenger demand and recently awarded contracts, including a major engagement at Heathrow Airport. The Education segment delivered one of the strongest margin performances. In the second quarter of fiscal 2026, revenues from the Education segment increased to $232.2 million, while operating profit rose 19% and operating margin expanded 100 basis points to 7%.
ABM consistently rewards its shareholders through dividend payments and share repurchases. The company paid dividends of $57.5 million, $56.5 million and $65.6 million, while repurchasing shares worth $138.1 million, $56.1 million and $122.2 million in fiscal 2023, 2024 and 2025, respectively. These shareholder-friendly policies enhance shareholder value and make the stock attractive to investors.
ABM’s current ratio (a measure of liquidity) at the end of the second quarter of fiscal 2026 was 1.46, higher than the industry’s 1.13. A current ratio of 1 or more than 1 indicates the company is well-positioned to meet its short-term obligations.
Key Risks to WatchABM Industries faces risks from macroeconomic uncertainty, including tariff headwinds and changes in government policies that could raise input costs or delay infrastructure and public-sector projects. Trade tensions and shifting spending priorities may slow contract awards, while elevated labor costs could further pressure margins and temper growth.
ABM faces growing cost pressures as operating expenses weigh on margins and near-term earnings growth. Total operating costs increased by 4.2% in fiscal 2023, 4.1% in fiscal 2024 and 4.7% in fiscal 2025. This underscores the need for stronger cost controls to prevent expense growth from outpacing revenues and eroding profitability. In the second quarter of fiscal 2026, the operating expenses rose 9.3% year over year.
ABM’s Zacks Rank & Stocks to ConsiderABM Industries currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of better-ranked stocks in the Business Services sector are Trane Technologies plc (TT - Free Report) and TransUnion (TRU - Free Report) .
Trane Technologies carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 14.6%.
TT delivered a trailing four-quarter earnings surprise of 2.7%, on average.
TransUnion also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 13.5%.
TRU beat earnings estimates in each of the last four quarters, with an average earnings surprise of 6.3%.
Key Takeaways ABM stock jumped 10.9% on June 5 after Q2 EPS of 90 cents missed estimates despite a revenue beat.Technical Solutions revenues rose 27.2% and Aviation 19.5%, helped by data centers and the Heathrow win.The free cash flow was $22.4M; leverage 3.2X with plan to drop below 3.0X by the fiscal year-end. ABM Industries Incorporated (ABM - Free Report) reported mixed second-quarter fiscal 2026 results. Earnings per share (EPS) missed the Zacks Consensus Estimate, while revenues beat the same.
Despite the lower-than-expected earnings results, the stock rallied 10.9% following the earnings release on June 5.
ABM posted adjusted earnings of 90 cents per share in the second quarter of fiscal 2026, up 4.7% from the year-ago period but missing the Zacks Consensus Estimate of 92 cents by 2.2%.
Quarterly revenues rose 8.4% year over year to $2.29 billion and beat the consensus mark of $2.22 billion by 2.9%. Performance was supported by record first-half sales bookings, with strength led by Technical Solutions and Aviation.
ABM Shows Solid Top-Line Momentum Despite ExitsABM Industries delivered organic revenue growth of 6.1% in the quarter, with acquisitions adding 2.3% to reported growth. Management pointed to healthy demand across several end markets, including energy infrastructure, semiconductors and airport modernization, alongside steady recurring work that supports the company’s baseline revenue profile.
Business & Industry was flat organically, pressured by the exit of a large U.K. client during the quarter and additional customer exits, particularly on the West Coast. Management framed some of the exits as intentional, citing a focus on walking away from accounts that do not meet profitability thresholds.
ABM Industries Leans on ATS & Aviation for GrowthBy segment, Technical Solutions revenues climbed 27.2% year over year to $267.3 million, supported by data center activity, battery energy storage systems and contributions from recent acquisitions. Aviation revenues increased 19.5% to $310.8 million, reflecting healthy travel demand and the increase in the latest wins, including the London Heathrow contract.
Manufacturing & Distribution revenues rose 16.5% to $463.8 million, aided by client expansions and the WGNSTAR acquisition, while Education revenues improved 1.9% to $232.2 million on price escalations. Business & Industry revenues were essentially unchanged at $1.02 billion, as strength in U.K. operations was largely offset by client exits.
ABM Sees Mixed Profitability as Mix Shifts
Adjusted EBITDA improved to $131.7 million from $125.9 million a year ago, reflecting higher volume and improved execution in parts of the business. Still, the segmental operating margin declined to 7.3% from 7.9% last year, as newer contracts in Manufacturing & Distribution and Business & Industry weighed on profitability, and Aviation absorbed inefficiencies tied to weather-related costs and contract dynamics.
Within Technical Solutions, operating profit increased year over year, but the margin held near the prior-year level as the quarter skewed toward equipment-intensive infrastructure work. Management emphasized that project mix mattered, noting that a heavier “turning the wrenches” phase can carry lower margins than design-and-engineering work, with mix expected to improve later in the year.
ABM Industries Offsets Headwinds With Operating FocusOn a GAAP basis, net income rose to $43.1 million, or 73 cents per diluted share, from $42.2 million, or 67 cents per share, in the prior-year quarter. The company cited lower tax expenses and reduced corporate costs as positives, partially offset by higher interest expenses and amortization tied to the WGNSTAR acquisition.
In Aviation, profit was pressured by incremental weather-related costs, TSA-driven disruptions and ramp-up costs associated with Heathrow. In Business & Industry, the margin declined year over year due to contract mix shifts and increased sales investments, though management expects the margin to benefit in the back half as the impact of exited, lower-return work flows through.
ABM Highlights Cash Improvement & Deleveraging PathCash generation improved versus last year, with the operating cash flow of $66.2 million and a free cash flow of $22.4 million in the quarter. Management credited working-capital discipline and continued progress on enterprise resource planning implementation for the year-over-year improvement.
ABM ended the quarter with total indebtedness of $1.9 billion and available liquidity of $613.8 million, including $94.9 million in cash and equivalents. Leverage stood at 3.2X, and management reiterated an expectation to bring leverage below 3X by the end of the fiscal year, positioning debt repayment as the near-term capital allocation priority.
ABM Industries Reaffirms Outlook as Growth Skews to Back HalfABM maintained its adjusted earnings outlook for fiscal 2026 at $3.85-$4.15. The midpoint ($4) of the guided range is higher than the consensus estimate for earnings of $3.94.
The company projects organic revenue growth at the higher end of 3-4%, with total revenue growth toward the high end of 4-5%, including acquisition contributions.
Management expects margin expansion to be weighted to the second half, driven by improved volume and service mix in Technical Solutions and continued price escalation and cost actions. ABM also updated its guidance approach to include the impacts of prior-year self-insurance adjustments and forecast interest expenses of $110 million, with a normalized tax rate of 29-30%.
ABM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings SnapshotRepublic Services, Inc. (RSG - Free Report) delivered solid first-quarter 2026 results, with EPS of $1.70 beating the Zacks Consensus Estimate of $1.64 by 3.7%. Earnings increased 7.6% from $1.58 in the year-ago quarter.
Revenues rose 2.6% year over year to $4.11 billion and marginally surpassed the consensus mark of $4.10 billion.
Corpay, Inc. (CPAY - Free Report) delivered a strong first-quarter 2026, with adjusted earnings of $5.80 per share, rising 28.6% year over year and surpassing the Zacks Consensus Estimate by 5.5%. Revenues of $1.26 billion increased 25.4% year over year and beat estimates by 4.4%.
OMAHA, Neb.--(BUSINESS WIRE)--ACI Worldwide (NASDAQ: ACIW), an original innovator in global payments technology, announced today that it will report its financial results for the first quarter 2026 on May 7, 2026. Management will host a conference call at 8:30 AM ET to discuss the results. Participants may access the call as follows: Webcast: http://investor.aciworldwide.com/ Pre-registration (recommended): https://events.q4inc.com/analyst/134451343?pwd=FRT1UsXC Dial-in: +1 833 461 5787 Confere.
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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.00% per year. These returns cover a period from January 1, 1988 through May 4, 2026. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.
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OMAHA, Neb.--(BUSINESS WIRE)--ACI Worldwide (NASDAQ: ACIW), an original innovator in global payments technology, today announced ACI Connetic for eight major U.S. networks on a single, cloud-native platform. ACI Connetic enables connectivity to Fedwire, CHIPS, Swift, The Clearing House RTP, Zelle and FedNow, with Nacha ACH (FedACH and EPN) connectivity expected for customers next year. It also supports stablecoin and tokenized-deposit capabilities, providing a unified approach across traditiona.
On April 23, 2026, ACI Worldwide Inc (ACIW) shares fell 4.6% today, closing at $42.21. The stock has experienced a 52-week range between $38.05 and $55.45, refl
OMAHA, Neb.--(BUSINESS WIRE)--As real-time payments adoption accelerates worldwide and fraud risks intensify, ACI Worldwide (NASDAQ: ACIW) and Kinexys by J.P. Morgan today announced the integration of Kinexys Liink's Confirm application into ACI Worldwide's Fraud and Financial Crime solution. The integration embeds account and payee verification directly into payment workflows, enabling banks to help reduce fraud, protect customers, and aims to support safer, faster payments at scale. Through t.
ACI Worldwide and JPMorgan Chase have launched a partnership to combat payment fraud.
The collaboration, announced Friday (April 24), will see JPMorgan integrate its Kinexys Liink’s Confirm application into ACI Worldwide’s Fraud and Financial Crime solution.
According to an ACI news release, the integration embeds account and payee verification right into payment workflows, allowing banks to help prevent fraud, protect customers, and support safer, faster payments at scale.
With this collaboration, financial institutions (FIs) get a “robust account validation capability, supporting a broad range of payment types and geographies,” the release added.
“By unifying account and payee verification within an enterprise fraud platform, banks can apply consistent controls across payment rails, simplify compliance with evolving requirements, and strengthen protection as payment volumes continue to grow.”
Unlike traditional payments, transactions sent via instant rails are irreversible, the release continued. Once funds have been transmitted, they can’t be recalled, leaving institutions with no recovery window and making post‑transaction monitoring insufficient by itself.
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As fraud volumes keep climbing, there is a rising call across the industry for more robust account/payee verification for certain payments. The focus is increasingly on authenticating payment details upfront, so institutions can identify fraud before funds leave the account.
“At the same time, heightened consumer awareness, higher reimbursement pressures, and increased operational risk are leading banks to embed stronger verification controls directly into the payment flow as a standard feature of modern payments infrastructure,” the release added.
Despite fraud concerns around instant payments, legacy payment methods such as checks remain a leading source of fraud risk, as PYMNTS wrote earlier this year.
Checks are 16 times more likely to be lost, stolen or altered compared to electronic transfers, according to U.S. government data, while more than 50% of the businesses that suffered fraud last year still use checks.
“Despite this, many organizations continue to view checks as safer than instant payment methods because of their physical nature, even as evidence suggests greater fraud exposure,” that report added.
By contrast, real-time payment rails are showing stronger security performance. Many institutions using instant payments say they’ve seen limited or no operational fraud impact, supported by ongoing monitoring, transaction-level visibility and quicker detection. As experience grows, perceptions are changing, with 37% of businesses pointing to security as a top benefit of embracing instant payments. This figure is up from 25% one year earlier.
“Still, confidence depends on readiness. FIs increasingly view fraud-prevention tools as essential to scaling instant payments,” PYMNTS added. “This view underscores the need to invest in monitoring, governance and exception handling as volumes grow.”
See More In: ACI Worldwide, B2B, B2B Payments, instant payments, JPMorgan Chase, Kinexys, News, PYMNTS News, real time payments, What's Hot, What's Hot In B2B
NetSol Technologies (NASDAQ:NTWK – Get Free Report) and ACI Worldwide (NASDAQ:ACIW – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Profitability This table compares NetSol Technologies and ACI Worldwide’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets NetSol Technologies 2.74% 4.68% 3.11% ACI Worldwide 12.88% 16.44% 7.66% Analyst Recommendations This is a breakdown of current ratings and price targets for NetSol Technologies and ACI Worldwide, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score NetSol Technologies 0 1 0 0 2.00 ACI Worldwide 1 1 3 0 2.40 ACI Worldwide has a consensus price target of $60.00, indicating a potential upside of 38.92%. Given ACI Worldwide’s stronger consensus rating and higher possible upside, analysts plainly believe ACI Worldwide is more favorable than NetSol Technologies.
Valuation & Earnings This table compares NetSol Technologies and ACI Worldwide”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio NetSol Technologies $66.09 million 0.63 $2.92 million $0.16 22.13 ACI Worldwide $1.76 billion 2.49 $226.66 million $2.17 19.90 ACI Worldwide has higher revenue and earnings than NetSol Technologies. ACI Worldwide is trading at a lower price-to-earnings ratio than NetSol Technologies, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership 16.0% of NetSol Technologies shares are owned by institutional investors. Comparatively, 94.7% of ACI Worldwide shares are owned by institutional investors. 13.2% of NetSol Technologies shares are owned by insiders. Comparatively, 1.1% of ACI Worldwide shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility NetSol Technologies has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, ACI Worldwide has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
Summary ACI Worldwide beats NetSol Technologies on 12 of the 14 factors compared between the two stocks.
About NetSol Technologies (Get Free Report)
NetSol Technologies, Inc. designs, develops, markets, and exports enterprise software solutions to the automobile financing and leasing, banking, and financial services industries worldwide. The company offers NFS Ascent, a suite of financial applications for businesses in the finance and leasing industry. Its NFS Ascent constituent applications include Omni Point of Sale, a web-based application; Contract Management System (CMS), an application for managing and maintaining credit contracts; Wholesale Finance System (WFS), a system for automating and managing the lifecycle of wholesale finance; Dealer Auditor Access System, a web-based solution that could be used in conjunction with WFS or any third-party wholesale finance system; NFS Ascent deployed on The Cloud, a cloud-version of NFS Ascent; and NFS Digital, that includes Self Point of Sale, Mobile Account, Mobile Point of Sale, Mobile Dealer, Mobile Auditor, Mobile Collector, and Mobile Field Investigator. The company also provides Otoz Digital Auto-Retail and mobility orchestration, a white-label SaaS platform; Otoz Ecosystem, an API-based architecture; and Otoz Platform, a white label platform, which includes Dealer/Admin Tool and Customer Portals. In addition, it offers system integration, consulting, and information technology products and services. It serves blue chip organizations, Dow-Jones 30 Industrials, Fortune 500 manufacturers and financial institutions, and vehicle manufacturers. The company was incorporated in 1997 and is headquartered in Encino, California.
About ACI Worldwide (Get Free Report)
ACI Worldwide, Inc., a software company, develops, markets, installs, and supports a range of software products and solutions for facilitating digital payments in the United States and internationally. The company operates in three segments: Banks, Merchants, and Billers. The company offers ACI Acquiring, a solution to process credit, debit, and prepaid card transactions, deliver digital innovation, and fraud prevention; ACI Issuing, a digital payment issuing solution for new payment offering; and ACI Enterprise Payments Platform that provides payment processing and orchestration capabilities for digital payments. It also provides ACI Low Value Real-Time Payments, a platform for processing real-time payments; and ACI High Value Real-Time Payments, a payments engine that offers multi-bank, multi-currency, 24×7 payment processing, and SWIFT messaging. In addition, the company offers ACI Payments Orchestration Platform for optimizing payments; omni-channel payment platform; ACI Fraud Management, a real-time approach to fraud management; and ACI Speedpay, an integrated suite of digital billing, payment, disbursement, and communication services. The company offers electronic bill presentment and payment services to consumer finance, insurance, healthcare, higher education, utility, government, telecommunications, and mortgage sectors; implementation services, include product installations and configurations, and custom software modifications; and business and technical consultancy, on-site support, product education, and testing services, as well as distributes or acts as a sales agent for software developed by third parties. It markets its products under the ACI Worldwide brand. The company was formerly known as Transaction Systems Architects, Inc. and changed its name to ACI Worldwide, Inc. in July 2007. The company was founded in 1975 and is based in Elkhorn, Nebraska.
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Copyright 2026 Zacks Investment Research 101 N Wacker Drive, Floor 15, Chicago, IL 60606
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.00% per year. These returns cover a period from January 1, 1988 through May 4, 2026. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.
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Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:
Amerant Bancorp (AMTB - Free Report) is a bank holding company, which provides deposit, credit and wealth management services to individuals and businesses primarily in the U.S., as well as select international clients. The Zacks Consensus Estimate for its current year earnings has been revised 13.7% downward over the last 60 days.
The Blackstone Group (BX - Free Report) is a leading asset manager of alternative investments and a global provider of financial advisory services. The Zacks Consensus Estimate for its current year earnings has been revised 7.2% downward over the last 60 days.
ACI Worldwide (ACIW - Free Report) is a Universal Payments (UP) company, which powers electronic payments for more than 5,000 organizations around the world. The Zacks Consensus Estimate for its current year earnings has been revised nearly 6.5% downward over the last 60 days.
OMAHA, Neb.--(BUSINESS WIRE)--Peru, Chile and Argentina are entering a decisive stage of their real‑time payments modernization journeys, with adoption expected to drive economic growth and financial inclusion across the region, according to the Real-Time Payments: Economic Impact and Financial Inclusion report. The study was commissioned by ACI Worldwide, and conducted by the Cebr (Centre for Economics and Business Research), a leading economic think tank.* By 2028, real-time payments are fore.
OMAHA, Neb.--(BUSINESS WIRE)--ACI Worldwide (NASDAQ: ACIW), a leading provider of global payments technology, today announced financial results for the quarter ended March 31, 2026. “Payments modernization continues to accelerate, and ACI is at the center of it,” said Thomas Warsop, President and CEO of ACI Worldwide. “In the quarter, Real Time Payments and Merchant each grew more than 20%, Biller delivered 10% growth on top of last year's double‑digit performance, and new ARR bookings grew 39%.
ACI Worldwide (ACIW - Free Report) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +35.56%. A quarter ago, it was expected that this maker of software for electronic payments would post earnings of $1.05 per share when it actually produced earnings of $0.9, delivering a surprise of -14.29%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
ACI Worldwide, which belongs to the Zacks Computer - Software industry, posted revenues of $425.75 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.79%. This compares to year-ago revenues of $394.57 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ACI Worldwide shares have lost about 9.5% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for ACI Worldwide?While ACI Worldwide has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ACI Worldwide was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.50 on $429.7 million in revenues for the coming quarter and $3.19 on $1.89 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Descartes Systems (DSGX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 3.
This logistics provider is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of +29.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Descartes Systems' revenues are expected to be $191.7 million, up 13.6% from the year-ago quarter.
