Amentum (NYSE:AMTM) Shows Resilience Amidst Revenue Miss and Analyst Price Target Adjustment

• An analyst from Morgan Stanley (NYSE: MS) adjusted the price target for Amentum (NYSE:AMTM) to $24, indicating a potential upside of 7.00% from its trading price.
• Despite a revenue miss of 2.97%, Amentum demonstrated strong profitability with a 6% increase in adjusted EBITDA to $290 million and a record adjusted EBITDA margin of 8.3%.
• The company reported robust adjusted diluted EPS growth of 20% to $0.67, beating consensus estimates, and generated strong free cash flow of $135 million, supporting an increased full-year outlook.

Amentum (NYSE:AMTM) is an advanced engineering and technology company that operates within the government services sector. On August 11, 2026, Morgan Stanley (NYSE: MS) analyst Greg Parrish lowered the price target for Amentum to $24. At the time, the stock was trading at $22.43, meaning the new target represents a potential upside of approximately 7.00%.

The company’s recent third-quarter results show mixed performance. Amentum reports revenue of $3.49 billion, which is slightly below expectations and misses the Zacks Consensus Estimate by 2.97%. The company’s CEO, John Heller, cites near-term pressures like procurement delays and extended protest periods as reasons for the revenue shortfall.

Despite the revenue miss, Amentum demonstrates strong profitability. The company reports a 6% year-over-year increase in third-quarter adjusted EBITDA, reaching $290 million. EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, is a common measure of a company's overall financial performance and profitability from its core operations.

This profitability leads to a record adjusted EBITDA margin of 8.3%, an increase of 60 basis points from the prior year. Furthermore, adjusted diluted earnings per share (EPS) grow 20% to $0.67. This result beats the consensus estimate of $0.63 per share, as highlighted by Zacks, marking the fourth straight quarter Amentum has surpassed EPS estimates.

The company’s ability to generate cash is also strong, with free cash flow reaching $135 million in the third quarter. This strong operating performance and cash flow support an increase in the company's full-year outlook for adjusted EBITDA and adjusted EPS, even with the challenges affecting revenue.