AECOM Reports Strong Q1 Results, Raises Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Should l Buy ACM?
Source: seekingalpha
AECOM's stock fell 5.14% as it crossed below the 20-day SMA amid broader market declines, with the Nasdaq-100 down 0.78% and the S&P 500 down 0.26%.
Despite the stock's decline, AECOM reported Q1 revenue of $3.83 billion, exceeding expectations and reflecting strong performance in the infrastructure services sector. The company raised its fiscal 2026 adjusted EPS guidance to between $5.85 and $6.05, driven by a record backlog of $26 billion, which is a 9% increase year-over-year. This strong performance indicates robust market demand and confidence in future growth, despite a net income decline.
The implications of AECOM's strong earnings report and raised guidance suggest that the company is well-positioned for future growth, even as its stock price experiences short-term volatility. The increased backlog and shareholder returns reflect a solid foundation for sustained performance.
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Analyst Views on ACM
Wall Street analysts forecast ACM stock price to rise
9 Analyst Rating
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 91.230
Low
100.00
Averages
133.78
High
152.00
Current: 91.230
Low
100.00
Averages
133.78
High
152.00
About ACM
AECOM is a global provider of professional infrastructure consulting and advisory services for governments, businesses and organizations throughout the world. It provides advisory, planning, consulting, architectural and engineering design, construction and program management services, and investment and development services to public and private clients worldwide in major end markets, such as transportation, facilities, water, environmental, and energy. Its Americas segment provides planning, consulting, architectural and engineering design, construction management and program management services to public and private clients in the United States, Canada, and Latin America. Its International segment provides planning, consulting, architectural and engineering design services and program management to public and private clients in Europe, the Middle East, India, Africa, and the Asia-Australia-Pacific regions. Its ACAP segment primarily invests in and develops real estate projects.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Project Resumption: The funding freeze had triggered a work stoppage threatening nearly 1,000 jobs, but contractors are now instructed to prepare for construction resumption next week, ensuring the project stays on track.
- Legal Obligation: Governor Hochul emphasized that the federal government has a legal obligation to fully fund the Gateway project, highlighting the importance of continuous funding support to prevent future disruptions for workers and commuters.
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- Net Income Decline: Despite the revenue beat, net income fell to $140 million, or $1.06 per share, reflecting lower pass-through revenue impacts, yet the company maintained strong growth in net service revenue, which increased by 5% on an adjusted basis.
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- Revenue Performance: The company generated $3.83 billion in revenue, a 4.5% year-over-year decline, yet still beat expectations by $300 million, indicating AECOM's robust market adaptability despite challenges.
- Guidance Upgrade: AECOM raised its fiscal 2026 adjusted EPS guidance to between $5.85 and $6.05, driven by successful capital allocation strategies and a record backlog, enhancing visibility for future performance.
- Cash Flow and Tax Rate Adjustments: The company anticipates approximately $400 million in free cash flow and an adjusted effective tax rate of 20% to 22%, down from the previous 22% to 23%, which will further enhance profitability.
See More
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- Increased Buyback Authorization: The Board approved an increase in share repurchase authorization to $1 billion, having returned over $340 million to shareholders through buybacks and dividends in the last quarter, reflecting confidence in future cash flows.
- Record Backlog: Total backlog reached a record high of $25.962 billion, up 9% year-over-year, with a 1.5 book-to-burn ratio highlighting the company's competitive edge in large infrastructure projects, signaling stable revenue growth ahead.
- Strategic Business Review: AECOM completed a strategic review of its Construction Management business, deciding to retain and operate it, which underscores the company's confidence in its future potential and secures its leadership position in the market.
See More
