Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 4, 2026 · Beat 7 of last 7 quarters
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AMETEK's record orders and backlog, driven by semiconductor, power grid, and defense demand, reinforce the thesis that the AI infrastructure buildout is broadening beyond data centers into the physical layer—power, cooling, and advanced manufacturing. The company's exposure to hyperscaler power simulation (RTDS) and semiconductor metrology (Zygo) positions it as a key supplier to the AI capex cycle, with management citing 'early innings' of a multiyear buildout.
AMETEK delivered record Q2 results with sales of $2.04B (+15% YoY, organic +10%), operating income of $544M (+18%), and diluted EPS of $2.09 (+17%), beating guidance. Orders were a record $2.3B (+28% YoY, organic +25%), with EMG organic orders up 35% and EIG up 20%. Core margins expanded 110 bps to 27.1%, driven by strong incrementals (~40%), productivity, and price. Free cash flow was $452M (111% conversion). EIG sales grew 14% (organic +7%) and EMG sales grew 17% (organic +15%). Management highlighted strength in semiconductor, MedTech (Paragon), power, and defense, and noted June was the strongest orders month in company history.
Management raised full-year 2026 guidance: overall sales now expected up ~10% (organic mid-to-high single digits), and diluted EPS raised to $8.20-$8.30 (from $7.94-$8.14), up 10%-12% YoY. For Q3, they expect overall sales up high single digits and EPS of $2.08-$2.10, up 10%-11% YoY. They cited a broadening multiyear infrastructure buildout across AI/semiconductor, power grid, defense modernization, commercial aerospace, and MedTech as key demand drivers. They expect to close the Indicor Instrumentation acquisition in H2 2026, with $5B deployment and ~$2.5B remaining capacity.
“We're really in the beginning stages of a multiyear infrastructure build-out, and we're incredibly well positioned.”
on Growth outlook
“In terms of cadence, June was the strongest month for orders in the quarter in all time. So we had a record for the month of June. And we just finished July, and the orders were very good.”
on Orders momentum
“We're getting more confident with the 10% to 12% cost synergy. And we think this is going to be a great acquisition for our shareholders.”
on Indicor acquisition
Can you take us through your typical end market and regional data points? Are you seeing a positive inflection in the non-data center part of the industrial economy?
Dave provided a detailed walk: Process sales up high teens (organic high single digits), A&D up mid-teens organic, Power up mid-single digits organic, Automation & Engineered Solutions up mid-teens organic. Geographically, U.S. and Asia were strongest (both up low double digits), Europe up mid-single digits. He emphasized growth is broadening beyond AI to power grid, defense, commercial aerospace, and MedTech, and that they are in the early innings of a multiyear infrastructure buildout.
How much of your business today is tied to data center infrastructure build/AI? And does the inbound demand inform a greater ability to capture price?
Dave said the combined bucket of data center/AI, military modernization, commercial aerospace, and power infrastructure is about half of the business, with data center itself smaller but growing. He noted their differentiated, IP-driven portfolio and high R&D investment (vitality 25%) allow them to offset inflation and tariffs with price, which they did in the quarter.
Where did you see the most acceleration in end markets? Any that came in below expectations?
Dave highlighted semiconductor (in EIG) and MedTech (Paragon in EMG) as standouts. He explained Paragon's outsized margin expansion was driven by new product wins and a leaned-out cost structure after absorbing integration friction during the pandemic destock. He noted all markets were strong, with no major disappointments.