EL7.AI
StocksMediumUpdated×2•Originally published 8 September 2026•Updated 8 September 2026•
2 min read

ABM Posts Record $2.32 Billion Fiscal Q3 Revenue, Lifts 2026 EPS Outlook Midpoint

Key Facts

1Record fiscal third-quarter revenue was $2.32 billion, up 4.2% year over year.
2Adjusted EPS was $1.04 versus $0.82 a year earlier and a $1.01 consensus estimate.
3The 2026 adjusted-EPS range is now $3.95-$4.10, compared with $3.85-$4.15 previously.
4ABM targets about $300 million of operating cash flow and about $210 million of free cash flow.
5ABM lowered its segment operating-margin range to 7.7%-7.8% from 7.8%-8.0%.

ABM posted record revenue of $2.32 billion for its fiscal third quarter ended July 31, 2026, up 4.2% year over year. Adjusted EPS was $1.04, beating the $1.01 consensus estimate by $0.03, while revenue broadly matched the rounded $2.32 billion estimate.

GAAP net income increased 19% to $49.7 million from $41.8 million, while diluted EPS rose to $0.84 from $0.67. On an adjusted basis, net income increased 19% to $61.5 million from $51.7 million, and EPS rose to $1.04 from $0.82.

Revenue growth was evenly split between 2.1% organic growth and 2.1% acquisition-related growth. Manufacturing & Distribution revenue rose 17.6%, Aviation gained 12.5%, and Technical Solutions increased 4.2%, while Business & Industry declined 2.6%.

Quarterly operating cash flow was $146.8 million, down from $175.0 million a year earlier, while free cash flow fell to $128.4 million from $150.2 million. The cumulative picture was stronger: operating cash flow for the first 9 months reached $275.0 million versus $101.0 million, and free cash flow increased to $199.6 million from $42.4 million.

ABM revised its fiscal 2026 adjusted-EPS range to $3.95-$4.10 from $3.85-$4.15. The narrower range raises the lower bound and cuts the upper bound, but mathematically lifts the midpoint to $4.025 from $4.00.

The company maintained its organic revenue-growth outlook near the top of a 3%-4% range and total revenue growth near the top of a 4%-5% range. It lowered its segment operating-margin range to 7.7%-7.8% from 7.8%-8.0%, while raising expected operating cash flow to about $300 million and free cash flow to about $210 million, roughly $25 million above the prior free-cash-flow forecast.

The Q4 test will be ABM's execution of deferred Technical Solutions projects and whether strong year-to-date cash generation proves sustainable. Key investor checkpoints are the $3.95-$4.10 adjusted-EPS range, about $210 million of free cash flow, and a 7.7%-7.8% segment operating margin.