On September 8, 2026, ABM Industries Incorporated (NYSE:ABM) reported financial results for its fiscal third quarter, the three months ended July 31, 2026. Revenue reached a company record of $2.3 billion, up 4.2% from a year earlier, and adjusted earnings per diluted share rose 27% to $1.04. Nine-month free cash flow totaled $199.6 million, compared with $42.4 million over the same stretch last year.
Management raised the midpoint of its full-year adjusted earnings guidance to a range of $3.95 to $4.10 per share and increased its full-year free cash flow forecast to approximately $210 million. A Cleveland-Cliffs facility in the Industrial Valley. Photo from Cleveland-Cliffs Deutsche Bank lifted its price target on ABM Industries Incorporated (NYSE:ABM) to $54 from $52 on September 9, 2026, maintaining a Hold rating, pointing to the company's progress in its higher-growth business lines.
Baird's Andrew Wittmann raised his target to $53 from $48 the same day, keeping a Neutral rating, and noted in his updated model that several parts of the business are trending favorably even as competitive pressure persists elsewhere. Truist raised its target to $49 from $45 on September 14, 2026, keeping a Hold rating, attributing the stock's recent outperformance to a mix of solid results, an improved guidance picture, and rising recognition of ABM Industries Incorporated (NYSE:ABM)'s growth-oriented segments, though the firm said its neutral stance reflects what it called a "light catalyst path" for the shares. The underlying business supports the optimism behind those target increases.
ABM Industries Incorporated (NYSE:ABM)'s revenue tied to semiconductor facilities, microgrids, and data centers totaled close to $775 million over the first nine months of the fiscal year, now topping 11% of total revenue, with organic growth in the semiconductor business alone running at 65%. CEO Scott Salmirs described the company's recent purchase of WGNSTAR as extending ABM's reach from working around semiconductor fabrication facilities to operating directly inside them. Manufacturing and distribution revenue climbed 18% to $481 million, aviation revenue rose 12% to $328.1 million on the back of continued growth at its London Heathrow contract, and strong cash generation helped it reach its sub-3-times leverage target a full quarter earlier than planned.
ABM also secured a new $300 million receivables financing facility to diversify its funding sources. None of the three cautious analysts highlighted here moved off a Hold or Neutral stance, which points to real hesitation about the stock even amid the improving headline numbers. The portfolio's softer segments back up that hesitation.
Business and Industry revenue declined 2.6% as ABM worked through the departure of a large client in the United Kingdom and continuing weakness in the Northern California commercial real estate market, where Salmirs said rival providers are pricing contracts at levels ABM Industries Incorporated (NYSE:ABM) has chosen not to match. Aviation's operating margin fell to 5.6% from 6.8% as airline customers, under pressure from higher fuel expenses, pushed back on what they pay for service. Technical Solutions revenue grew just 4%, slowed by roughly $15 million in project delays after a major client opted to direct capital elsewhere for the time being.
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