ACM Research (ACMR) opened 2026 with Q1 revenue of US$231.3 million and basic EPS of US$0.26, alongside trailing twelve month revenue of US$960.2 million and EPS of US$1.40 that frame the latest quarterly print. Over the past six quarters, the company has seen quarterly revenue range from US$172.3 million to US$269.2 million and basic EPS move between US$0.12 and US$0.56, giving investors a clear view of how top line and per share earnings have tracked into the current TTM profile. With trailing net profit margins sitting at 9.5% versus 13.3% a year earlier, this set of results puts the spotlight squarely on how sustainably ACM Research can convert its revenue base into profit.

See our full analysis for ACM Research.

With the headline numbers on the table, the next step is to see how this earnings run rate lines up with the widely followed growth and margin narratives around ACM Research and where those stories might need updating.

Net margin slips to 9.5%

• Trailing 12 month net profit of US$91.0 million on revenue of US$960.2 million gives ACM Research a 9.5% net margin, compared with 13.3% a year earlier in the data.
• Consensus narrative highlights long term margin potential, yet the current 9.5% margin and Q1 2026 net income of US$17.3 million show that profitability is sitting below recent expectations, which creates a clear tension with forecasts that assume higher earnings quality.
  • Analysts in the consensus view are looking for earnings growth of about 25.2% a year, while the most recent trailing margin level is lower than last year, so you are seeing strong growth forecasts alongside softer recent profitability.
  • Five year earnings growth of 28.7% a year in the data lines up with that growth story, but the margin step down from 13.3% to 9.5% means the path to those earnings may depend on how efficiently ACM Research can translate future revenue into profit.

TTM earnings vs bullish growth story

• Over the last four reported quarters, trailing EPS sits at US$1.40, based on trailing net income of US$91.0 million, compared with quarterly EPS that has moved between US$0.12 and US$0.56 across the past six quarters.
• Bulls point to forecasts for earnings to grow around 25.2% a year and long term analyst assumptions that earnings could reach US$193.4 million, and the current trailing EPS of US$1.40 and recent Q1 2026 EPS of US$0.26 give you a concrete starting point to test how demanding those bullish expectations are.
  • Supporters of the bullish view highlight ACM Research's exposure to AI and advanced packaging tools, yet the latest trailing net income of US$91.0 million is below the bullish narrative's reference point of US$117.1 million, so the current earnings base is smaller than that storyline assumes.
  • With revenue over the last 12 months at US$960.2 million against bullish revenue assumptions of around US$1.5b by 2029, investors following the bullish case will likely watch how quickly the actual top line moves from just under US$1.0b toward that higher level.

On these numbers, bulls argue that ACM Research is still early in scaling its AI focused tool portfolio, but the gap between current US$91.0 million earnings and the US$193.4 million figure in bullish models makes execution a key part of that story. 🐂 ACM Research Bull Case

P/E of 43.1x and DCF fair value gap

• At a current share price of US$59.20 and trailing EPS of US$1.40, ACM Research trades on a P/E of 43.1x, compared with a DCF fair value in the data of US$48.04, so the price sits about US$11 above that cash flow based estimate.
• Bears focus on this valuation gap, arguing that a P/E of 43.1x and a price above the US$48.04 DCF fair value leave less room for error if margins stay around 9.5%, yet the same data set also shows analysts pointing to growth that could challenge a very cautious stance.
  • Critics highlight that the current price of US$59.20 is higher than the DCF fair value figure, while earnings in the most recent year were negative against a five year growth rate of 28.7% a year, so the valuation is being judged against a mixed profitability record.
  • At the same time, analysts represented in the data see scope for earnings and revenue to grow faster than the wider market, which means the bearish concern about the 43.1x P/E is being weighed against growth forecasts rather than a static profit profile.

Skeptics warn that paying 43.1x trailing earnings with margins at 9.5% could be demanding if growth or profitability slow from the paths laid out in forecasts, so it helps to compare that price tag with both the US$48.04 DCF fair value and how future margins evolve. 🐻 ACM Research Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for ACM Research on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Given the mix of bullish growth stories and current margin pressure, it helps to see the full picture for yourself, compare the numbers against your own expectations, and then weigh those findings against the 4 key rewards

Explore Alternatives

ACM Research is carrying a 43.1x P/E alongside a net margin that has slipped to 9.5%, which makes the current valuation look demanding relative to recent profitability.

If that mix of lofty pricing and softer margins feels uncomfortable, broaden your watchlist today with 51 high quality undervalued stocks, where the focus is on stocks priced more modestly against their fundamentals.

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.