Kennametal (NYSE:KMT) Updates FY 2026 Earnings Guidance

Kennametal (NYSE:KMT) updated its FY 2026 earnings guidance on Wednesday. The company provided EPS guidance of 2.050-2.450 for the period, compared to the consensus EPS estimate of 1.640. The company issued revenue guidance of $2.2 billion-$2.3 billion, compared to the consensus revenue estimate of $2.1 billion. Kennametal also updated its Q3 2026 guidance to 0.500-0.600 EPS.

Kennametal Stock Up 10.2%

Shares of KMT traded up $3.63 during mid-day trading on Wednesday, reaching $39.39. 1,391,548 shares of the stock traded hands, compared to its average volume of 1,117,413. The stock has a fifty day simple moving average of $30.57 and a 200 day simple moving average of $25.51. Kennametal has a 12-month low of $17.30 and a 12-month high of $40.90. The company has a quick ratio of 1.18, a current ratio of 2.60 and a debt-to-equity ratio of 0.45. The firm has a market cap of $3.00 billion, a price-to-earnings ratio of 32.29, a P/E/G ratio of 4.22 and a beta of 1.50.

Kennametal (NYSE:KMT) last released its quarterly earnings results on Wednesday, February 4th. The industrial products company reported $0.47 earnings per share for the quarter, beating analysts’ consensus estimates of $0.35 by $0.12. The business 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 business’s revenue was up 9.9% on a year-over-year basis. During the same period last year, the business earned $0.25 EPS. Kennametal has set its Q3 2026 guidance at 0.500-0.600 EPS and its FY 2026 guidance at 2.050-2.450 EPS. Sell-side analysts expect that Kennametal will post 1.17 EPS for the current fiscal year.

Kennametal Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 24th. Shareholders of record on Tuesday, February 10th will be issued a dividend of $0.20 per share. The ex-dividend date is Tuesday, February 10th. This represents a $0.80 annualized dividend and a yield of 2.0%. Kennametal’s payout ratio is currently 65.57%.

Wall Street Analysts Forecast Growth

KMT has been the topic of several recent analyst reports. The Goldman Sachs Group reaffirmed a “sell” rating and issued a $28.00 price target on shares of Kennametal in a report on Tuesday, January 27th. Morgan Stanley increased their price target on shares of Kennametal from $27.00 to $29.00 and gave the stock an “equal weight” rating in a research report on Monday, January 12th. Barclays boosted their price objective on Kennametal from $25.00 to $28.00 and gave the company an “equal weight” rating in a report on Wednesday, January 7th. Wall Street Zen raised Kennametal from a “buy” rating to a “strong-buy” rating in a report on Saturday, November 29th. Finally, JPMorgan Chase & Co. boosted their price target on Kennametal from $25.00 to $37.00 and gave the company an “underweight” rating in a report on Wednesday, January 14th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $29.67.

Trending Headlines about Kennametal

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Q2 results beat and outlook raised — Kennametal reported stronger-than-expected revenue, adjusted EPS, and operating income, and raised its full-year sales and adjusted EPS outlook; this is the primary driver of today’s share strength. Kennametal Announces Fiscal 2026 Second Quarter Results
• Positive Sentiment: Earnings and revenue confirmed by market write-ups — Coverage from Zacks and MarketBeat highlights the beat (EPS $0.47 vs $0.35 est.) and the ~10% revenue gain, reinforcing analyst attention and buy-side interest. Kennametal (KMT) Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Analyst attention on industrial strength — Sector pieces identify Kennametal among industrial names poised to outpace estimates, which can attract momentum and institutional interest. 3 Industrial Stocks Set to Outpace Q4 Earnings Estimates
• Neutral Sentiment: Capital allocation and dividend discussion — Commentary examines Kennametal’s steady dividend and how the company is prioritizing capital allocation (dividend vs. buybacks/investment); useful for longer-term investors but unlikely to move the stock as much as the earnings beat. Does Kennametal’s (KMT) Steady Dividend and Revenue Outlook Reveal Its True Capital Allocation Priorities?
• Neutral Sentiment: Metric deep-dive and disclosures available — Analyst notes and the company’s press materials/slide deck provide detail on margins, ROE, and the impact of buy?ahead tungsten demand; these details matter for model adjustments but are more incremental. Compared to Estimates, Kennametal (KMT) Q2 Earnings: A Look at Key Metrics

Institutional Trading of Kennametal

Several large investors have recently added to or reduced their stakes in KMT. Arrowstreet Capital Limited Partnership grew its stake in shares of Kennametal by 36.6% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,887,048 shares of the industrial products company’s stock worth $39,496,000 after purchasing an additional 505,669 shares in the last quarter. Wellington Management Group LLP grew its position in Kennametal by 20.7% in the 3rd quarter. Wellington Management Group LLP now owns 1,546,374 shares of the industrial products company’s stock valued at $32,366,000 after buying an additional 265,664 shares in the last quarter. Bridgeway Capital Management LLC grew its position in Kennametal by 7.8% in the 3rd quarter. Bridgeway Capital Management LLC now owns 707,824 shares of the industrial products company’s stock valued at $14,815,000 after buying an additional 50,989 shares in the last quarter. Bank of America Corp DE increased its stake in Kennametal by 92.3% during the 3rd quarter. Bank of America Corp DE now owns 493,283 shares of the industrial products company’s stock valued at $10,324,000 after buying an additional 236,736 shares during the period. Finally, Cubist Systematic Strategies LLC raised its position in shares of Kennametal by 195.3% during the 2nd quarter. Cubist Systematic Strategies LLC now owns 472,940 shares of the industrial products company’s stock worth $10,859,000 after buying an additional 312,769 shares in the last quarter.

Kennametal Company Profile

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.