American Superconductor (AMSC) just posted Q3 2026 results that put the spotlight on its income statement, with revenue of US$74.5 million and basic EPS of US$2.68 anchored by net income of US$117.8 million. The company has seen revenue move from US$61.4 million in Q3 2025 to US$74.5 million in Q3 2026, while quarterly EPS shifted from US$0.07 to US$2.68, highlighting a period where reported profitability and wider margins are front and center for investors assessing how durable this earnings profile might be.

With the latest quarterly numbers on the table, the next step is to weigh them against the prevailing narratives around American Superconductor and see which views are reinforced and where the story starts to look different.

46.7% net margin and earnings quality flag

• On a trailing 12 month basis, American Superconductor reports net income of US$130.5 million on US$279.4 million of revenue, which works out to a 46.7% net margin compared with 1.6% the previous year.
• What stands out for a bearish check is that, even with this very large margin and very large year over year earnings growth, the data flags a major risk that a high portion of those earnings are non cash items. This means:
  • Critics highlight that trailing 12 month EPS of US$3.19, up from much lower levels a year ago, could be harder to interpret if a significant slice is accounting driven rather than tied to cash flowing in.
  • At the same time, revenue is shown growing at about 16.4% per year over the last 12 months, so bears are not questioning demand as much as the composition of profit behind that headline 46.7% margin.

Revenue at US$279.4 million over last year

• Looking across the trailing 12 months, revenue is US$279.4 million, with quarterly revenue in the last six reported quarters ranging from US$54.5 million to US$74.5 million, and revenue over that trailing window is described as having grown about 16.4% per year.
• Supporters looking for a bullish angle often focus on that combination of revenue momentum and profitability, and this quarter adds to that story in a few ways:
  • Over the last year, reported earnings growth is very large relative to the prior year and well above the 5 year annualized earnings growth rate of 58.9%, so the recent period looks especially strong compared with the longer history.
  • With net income on a trailing 12 month basis at US$130.5 million alongside that 46.7% margin, bulls argue that the business is showing it can convert a meaningful portion of its revenue into profit, even if part of that is flagged as non cash.

P/E of 9.5x versus peers at 41.7x

• At a share price of US$25.95, American Superconductor is shown trading on a P/E of 9.5x, compared with peer and US electrical industry averages of 41.7x and 34.8x, and a DCF fair value figure of US$49.29, while analysts’ price target reference point is US$57.33.
• What is interesting from a bullish versus cautious angle is how those valuation markers line up against the risk flags:
  • On one hand, the low P/E relative to peers and the gap between the current price and both the DCF fair value and analyst target can be read as supportive for investors who see the reported earnings profile as sustainable.
  • On the other hand, the same dataset also points out minor risks such as recent share price volatility and shareholder dilution over the past year, plus the major non cash earnings concern, which help explain why the market might not be assigning peer level multiples despite those reference values.

Curious how numbers like a 9.5x P/E and a 46.7% net margin are shaping the story around American Superconductor right now, and where investors think the balance lies between non cash earnings and potential valuation upside, check out the current community view in Curious how numbers become stories that shape markets? Explore Community Narratives

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on American Superconductor's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

For all the strong reported margins, the big question mark is earnings quality, with a major flag around non cash items and recent share dilution.

If that mix of accounting heavy profit and dilution leaves you cautious, it is worth checking 81 resilient stocks with low risk scores to focus on companies with more resilient, lower risk profiles.

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.