Amentum (AMTM) rises after Q1 profit misses estimates but margins and backlog improve

Amentum Holdings (NYSE: AMTM) reported flat first-quarter 2026 revenue of $3.48 billion, in line with Wall Street expectations, while GAAP earnings of $0.22 a share missed consensus by 15.3%. Shares rose to $24.70 from $23.95 before the earnings release. The government engineering services provider guided full-year 2026 revenue to $14.13 billion at the midpoint, broadly in line with analyst estimates. Management cited operating margin expansion from cost synergies, disciplined contract execution and a shift toward higher-margin work. CEO John Heller pointed to stronger net bookings and backlog growth, including wins in defense and commercial digital infrastructure. CFO Travis Johnson said the company is progressing toward its leverage target, which could increase flexibility for future capital deployment. Investors will watch backlog conversion, U.S. defense budget trends and whether margin gains can be sustained.