Kennametal (NYSE:KMT) Releases Q3 2026 Earnings Guidance

by · The Markets Daily

Kennametal (NYSE:KMT – Get Free Report) issued an update on its third quarter 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 0.500-0.600 for the period, compared to the consensus estimate of 0.520. The company issued revenue guidance of $545.0 million-$565.0 million, compared to the consensus revenue estimate of $534.6 million. Kennametal also updated its FY 2026 guidance to 2.050-2.450 EPS.

Kennametal Stock Performance

Shares of Kennametal stock traded up $2.26 on Wednesday, reaching $38.02. 2,334,407 shares of the stock were exchanged, compared to its average volume of 1,160,424. The company has a current ratio of 2.60, a quick ratio of 1.18 and a debt-to-equity ratio of 0.45. The firm has a market capitalization of $2.89 billion, a PE ratio of 31.19, a PEG ratio of 4.22 and a beta of 1.50. The business has a fifty day moving average price of $30.57 and a two-hundred day moving average price of $25.51. Kennametal has a 1-year low of $17.30 and a 1-year high of $40.90.

Kennametal (NYSE:KMT – Get Free Report) last released its earnings results on Wednesday, February 4th. The industrial products company reported $0.47 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.12. The firm had revenue of $529.53 million during the quarter, compared to analyst estimates of $514.70 million. Kennametal had a net margin of 4.76% and a return on equity of 8.35%. The firm’s revenue for the quarter was up 9.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.25 earnings per share. Kennametal has set its Q3 2026 guidance at 0.500-0.600 EPS and its FY 2026 guidance at 2.050-2.450 EPS. As a group, research analysts anticipate that Kennametal will post 1.17 earnings per share for the current fiscal year.

Kennametal Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, February 24th. Shareholders of record on Tuesday, February 10th will be paid a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, February 10th. This represents a $0.80 annualized dividend and a yield of 2.1%. Kennametal’s payout ratio is presently 65.57%.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Kennametal in a report on Thursday, January 22nd. Barclays boosted their target price on shares of Kennametal from $25.00 to $28.00 and gave the stock an “equal weight” rating in a report on Wednesday, January 7th. UBS Group lifted their target price on Kennametal from $28.00 to $32.00 and gave the stock a “neutral” rating in a report on Monday, January 12th. The Goldman Sachs Group reiterated a “sell” rating and issued a $28.00 target price on shares of Kennametal in a report on Tuesday, January 27th. Finally, JPMorgan Chase & Co. upped their target price on Kennametal from $25.00 to $37.00 and gave the company an “underweight” rating in a report on Wednesday, January 14th. One analyst has rated the stock with a Strong Buy rating, five have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $29.67.

Check Out Our Latest Research Report on KMT

More Kennametal News

Here are the key news stories impacting Kennametal this week:

  • Positive Sentiment: Q2 results beat consensus — EPS $0.47 vs. $0.35 estimate and revenue $529.5M vs. $514.7M; sales rose ~10% year-over-year and adjusted operating income jumped materially. Management highlighted stronger volume and pricing drivers. Kennametal Announces Fiscal 2026 Second Quarter Results
  • Positive Sentiment: Company materially raised FY2026 guidance to EPS $2.05–$2.45 (consensus ~$1.64) and revenue $2.2B–$2.3B (consensus ~$2.1B), giving investors a clearer, higher-growth outlook. That guidance lift is a primary catalyst for the rally. Earnings & Guidance Details
  • Positive Sentiment: Analyst coverage and headlines quickly reflected the beat + upgraded outlook, supporting momentum in the shares. Shares Climb After Q2 Beat
  • Neutral Sentiment: Q3 (fiscal) guidance set at EPS $0.50–$0.60 and revenue $545M–$565M (slightly above consensus) — indicates continued near-term strength but with a wide range. Quarterly Slide Deck
  • Neutral Sentiment: Management said part of the sales upside was driven by customer buy-ahead related to tungsten pricing and modest end‑market improvement — a positive for near-term revenue but potentially less durable if inventory patterns normalize. Company Release
  • Neutral Sentiment: Coverage pieces and earnings snapshots (Zacks, Yahoo) provide deeper metric analysis and capital-allocation discussion (dividend vs. reinvestment). Useful for investors judging sustainability vs. valuation. Zacks Earnings Coverage
  • Negative Sentiment: Valuation and margin context: KMT trades at a relatively elevated P/E (background ~31.7) with modest net margin (~4.8%), so upside depends on whether above‑consensus guidance reflects sustainable demand rather than temporary inventory effects. Market Data & Metrics

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Royal Bank of Canada lifted its position in Kennametal by 17.7% in the first quarter. Royal Bank of Canada now owns 30,474 shares of the industrial products company’s stock worth $649,000 after buying an additional 4,578 shares during the last quarter. Jain Global LLC bought a new stake in Kennametal during the 3rd quarter valued at $660,000. Creative Planning lifted its position in shares of Kennametal by 41.6% in the 3rd quarter. Creative Planning now owns 41,968 shares of the industrial products company’s stock worth $878,000 after purchasing an additional 12,322 shares during the period. Nomura Holdings Inc. purchased a new position in shares of Kennametal in the second quarter worth about $932,000. Finally, Engineers Gate Manager LP lifted its stake in shares of Kennametal by 194.6% in the 2nd quarter. Engineers Gate Manager LP now owns 41,851 shares of the industrial products company’s stock valued at $961,000 after purchasing an additional 27,646 shares during the period.

Kennametal Company Profile

(Get Free Report)

Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.

The company’s product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.

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