Amentum Holdings (AMTM) opened Q1 2026 with revenue of about US$3.2b and net income of US$44m, translating to basic EPS of US$0.18, as the market weighs these numbers against a share price around US$32.06. Over recent quarters, the company has seen revenue move from US$3.4b in Q1 2025 to US$3.9b in Q4 2025 and then to US$3.2b in Q1 2026, while basic EPS shifted from US$0.05 to US$0.16 over the same 2025 span before landing at US$0.18 this quarter. This sets up a story where profitability trends and margin quality are front and center for investors.

See our full analysis for Amentum Holdings.

With the latest quarter on the table, the next step is to see how these headline figures stack up against the widely followed narratives about Amentum’s growth, risks, and earnings power, and where those stories might need updating.

Profitability turns a corner on US$98m trailing net income

• On a trailing twelve month basis, Amentum has moved from a net loss of US$82m in Q4 2024 to net income of US$98m in Q1 2026, with basic EPS shifting from a loss of US$0.90 to earnings of US$0.40 per share over the same window.
• Consensus narrative highlights a story of earnings power building behind long term contracts, and the trailing data partly backs that up while also showing some pressure points.
  • Reported trailing revenue has risen from US$8.4b in Q4 2024 to about US$14.2b in Q1 2026, which lines up with the idea that the contract backlog is converting into a larger revenue base.
  • At the same time, the company recorded a one off loss of US$94m within the last 12 months and interest expense coverage is flagged as weak, so the path to stronger margins is not a straight line even though profitability has turned positive.

High P/E near 79.7x versus industry and peers

• The trailing P/E of about 79.7x on a share price of US$32.06 sits well above the reported Professional Services industry average of 21.3x and a peer average of 26.3x.
• Bears focus on that high multiple and weak interest coverage, and the current numbers give them some specific points to work with.
  • Interest payments are described as not well covered by earnings, which means the US$98m of trailing net income is carrying more financing cost pressure than many investors might prefer at this valuation.
  • Revenue is forecast to grow around 3.3% per year compared with a cited 10.3% for the broader US market, so a slower top line plus a high P/E ratio is exactly the combination critics argue leaves less room for error.

On a rich multiple like this, skeptics often ask how long the company can justify paying interest from relatively thin earnings, and what happens if growth undershoots those expectations. 🐻 Amentum Holdings Bear Case

DCF fair value of US$75.82 versus US$32.06 price

• The provided DCF fair value of US$75.82 sits well above the current share price of US$32.06, while trailing twelve month EPS has risen from US$0.09 in Q2 2025 to US$0.40 by Q1 2026.
• Bulls point to this gap between price and modeled value, and the recent EPS trend, as support for a positive view.
  • Reported earnings growth of about 30.8% per year and a five year annualised rate of roughly 44% are used by optimistic investors to argue that the US$0.40 of trailing EPS could be a stepping stone rather than a peak.
  • The same dataset suggests the shares trade around 57.7% below that DCF fair value, so if the business continues to generate net income in the US$98m range or higher while managing one off items and interest costs, that gap is the core of the bullish thesis.

Supporters of the optimistic case often focus on how a growing earnings base could close that DCF gap over time if execution on large contracts and cost control stays on track. 🐂 Amentum Holdings Bull 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 Amentum Holdings on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? If this snapshot leads you to a different conclusion, shape that view into a clear story in just a few minutes, Do it your way

A great starting point for your Amentum Holdings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

See What Else Is Out There

Amentum’s high P/E, weak interest coverage and reliance on relatively thin earnings to handle financing costs leave limited room for comfort if conditions change.

If that balance sheet pressure feels too tight for your taste, take a few minutes to compare it with solid balance sheet and fundamentals stocks screener (45 results) that prioritize financial strength and resilience.

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.