AECOM (ACM) has attracted fresh attention after reporting record second quarter fiscal 2026 results, raising full year earnings guidance again, and highlighting an 8% backlog increase supported by transportation, water, energy, and environmental contracts.

Despite record guidance and a record backlog, AECOM's share price has come under pressure, with the stock down 30.65% over 90 days and year-to-date share price return down 27.44%. The 5-year total shareholder return of 12.23% points to a much more modest long-run outcome.

If infrastructure demand and energy transition themes interest you, it could be worth broadening your watchlist with a focused set of infrastructure-linked opportunities using our 37 power grid technology and infrastructure stocks

So with AECOM posting record Q2 figures, lifting full year earnings guidance, and trading well below its recent highs, is the stock being punished more than the fundamentals suggest, or is the market already factoring in potential changes to its outlook?

Most Popular Narrative: 42.5% Undervalued

The most followed narrative values AECOM at $121.75 a share, well above the last close of $69.95, framing the recent sell off as a valuation gap.

Accelerating global and U.S. government backed infrastructure spending, especially in transportation, water, energy, and data centers, provides multi year revenue visibility and a record backlog that should support top line growth and backlog driven earnings expansion.

Want to see what sits behind that backlog story and valuation gap? The narrative leans heavily on projected earnings, margin lift, and a richer future P/E. Curious which assumptions really move the fair value needle?

Result: Fair Value of $121.75 (UNDERVALUED)

However, the story can change quickly if government infrastructure budgets tighten, or if large, complex projects run into delays, cost overruns, or legal disputes.

Next Steps

Given the mix of concern and optimism in the story so far, this is the moment to look through the numbers yourself, weigh the trade offs, and see how current expectations stack up against your own view with 5 key rewards and 1 important warning sign

Looking for more investment ideas?

If AECOM has caught your attention, do not stop there. Broaden your opportunity set with other focused stock ideas that you can assess side by side using the Simply Wall St Screener.

• Spot potential bargains early by scanning companies that screen as high quality yet overlooked using the screener containing 21 high quality undiscovered gems
• Prioritize resilience by checking stocks that combine lower risk profiles with fundamentals you can scrutinize through the 70 resilient stocks with low risk scores
• Target dependable income by reviewing companies with higher yields and robust payout profiles through the 13 dividend fortresses

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.