--- title: "ATI (ATI) Net Margin Of 8.8% Tests Bullish Profit Expansion Narrative" type: "News" locale: "en" url: "https://longbridge.com/en/news/284927271.md" description: "ATI (ATI) reported Q4 2025 revenue of $1.2 billion and basic EPS of $0.71, with a net margin of 8.8%. Over the past year, quarterly revenue has fluctuated between $1.1 billion and $1.2 billion. Analysts expect net margins to rise from 8.8% to 13.5%, but recent earnings growth of 9.9% is below the 5-year average of 65.1%. ATI's P/E ratio stands at 52.5, significantly higher than peers, raising concerns about valuation amidst slower growth. Investors are advised to monitor the evolving narrative around ATI's profitability and market position." datetime: "2026-05-01T17:59:11.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284927271.md) - [en](https://longbridge.com/en/news/284927271.md) - [zh-HK](https://longbridge.com/zh-HK/news/284927271.md) --- # ATI (ATI) Net Margin Of 8.8% Tests Bullish Profit Expansion Narrative ATI (ATI) has opened Q1 2026 earnings season with Q4 2025 revenue of US$1.2 billion and basic EPS of US$0.71, setting the stage against a current share price of US$155.46 as investors focus on how these results fit into the company’s recent earnings trajectory. Over the past year, quarterly revenue has ranged from US$1.1 billion to US$1.2 billion, while basic EPS has moved between US$0.64 and US$0.80. This provides a clear view of how the top and bottom line have tracked together across recent reporting periods. With trailing twelve month basic EPS at US$2.92 and net margin at 8.8%, attention now turns to whether ATI’s profitability profile is giving investors enough comfort around the sustainability of these earnings. See our full analysis for ATI. With the headline numbers on the table, the next step is to see how ATI’s latest earnings line up with the key market narratives on growth, margins, and risk that have developed over the past few years. See what the community is saying about ATI NYSE:ATI Earnings & Revenue History as at May 2026 ## Net margin at 8.8% with four quarter EPS above US$0.68 - Across the last four reported quarters, ATI’s basic EPS sat between US$0.68 and US$0.80, while trailing net margin was 8.8% compared with 8.4% a year earlier, on trailing twelve month net income of US$404.3 million from US$4.6b in revenue. - Consensus narrative expects higher margin businesses to matter more over time, and the current 8.8% net margin gives a concrete starting point to test that view. - Analysts in the balanced view are assuming net margin can move from 8.8% to 13.5%, supported by contracts that tie pricing to inflation and focus on higher value alloys. - The fact that recent quarterly net income has been in the US$96.6 million to US$110 million range shows the earnings base that needs to expand for that margin step up to play out. ## Earnings growth slowing versus 5 year pace - ATI’s 1 year earnings growth of 9.9% sits well below its 5 year earnings growth rate of 65.1% per year, even though trailing twelve month EPS is US$2.92 on US$404.3 million of net income. - Bulls argue the slower recent growth is a pause before another leg up in profits, but the numbers set a high bar for that optimism. - The bullish narrative looks for earnings to reach US$861.9 million, which is more than double the current US$404.3 million level, and assumes revenue grows 9.4% a year, above the consensus 7.7% forecast. - At the same time, bullish analysts expect margins to rise from 8.8% to 14.4%, so the current 9.9% earnings growth rate and single digit margin leave a lot of progress to be made to match that path. Have a look at how the optimistic case stacks up against the actual earnings path so far: **🐂 ATI Bull Case**. ## Premium 52.5x P/E with DCF fair value below price - ATI is trading on a trailing P/E of 52.5x at a share price of US$155.46, compared with a peer average of 41.3x and an Aerospace & Defense industry average of 35.5x, while the provided DCF fair value is US$140.59. - Bears focus on this valuation gap, and the current earnings profile gives some support to their caution. - The bearish narrative assumes earnings can climb from around US$398.7 million to US$612.9 million, yet the share price already sits above the DCF fair value of US$140.59, which leaves less room if growth follows the lower 4.3% revenue path they outline. - With earnings forecast to grow 16.3% a year from the current US$2.92 EPS base and revenue forecast at 7.7% a year, skeptics question whether that growth and an 8.8% margin are enough to support a 52.5x P/E against cheaper peers. If you want to see why some investors question paying a premium multiple here, check the cautious case next: **🐻 ATI Bear Case**. ## Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for ATI on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. With bulls pointing to upside and bears flagging valuation risks, it makes sense to look at the numbers yourself and move quickly to firm up your stance using 2 key rewards and 2 important warning signs ## See What Else Is Out There ATI combines a high 52.5x P/E, modest 8.8% net margin, and slower recent earnings growth, which leaves limited room if expectations are not fully met. If you are uneasy about paying up for this kind of uncertainty, compare it with companies screened for stronger value and earnings support using 51 high quality undervalued stocks _This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._ ### **New:** Manage All Your Stock Portfolios in One Place We've created the **ultimate portfolio companion** for stock investors, **and it's free.** • Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free ### Related Stocks - [ATI.US](https://longbridge.com/en/quote/ATI.US.md) - [PICK.US](https://longbridge.com/en/quote/PICK.US.md) ## Related News & Research - [ATI CEO Kim Fields to speak at Bernstein Strategic Decisions Conference | ATI Stock News](https://longbridge.com/en/news/286762830.md) - [CEO Kimberly A. Fields Becomes ATI Board Chair | ATI Stock News](https://longbridge.com/en/news/286474966.md) - [Gamco Investors INC. 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