Why Carpenter Technology Stock Crashed After Earnings

Carpenter Technology (CRS) shares fell 21% after reporting Q1 revenue of $798.2M, missing estimates of $830.9M, despite record margins and strong aerospace demand. Net income rose to $162.5M, beating expectations. The company maintained its full-year outlook but saw a sequential decline in sales and operating income.

Spotify shares rose 9% after Q4 profit beat forecasts, with €5.2bn revenue and €820m operating income expected for the fall. Lockheed Martin shares gained 6.6% on strong Q3 sales and raised 2026 outlook. Procter & Gamble shares increased 5.72% after lifting full-year sales growth outlook. Carpenter Technology shares dropped 20.01% on missed Q1 revenue. TTM Technologies shares fell 27% despite record Q3 results.

Carpenter Technology (CRS) reported Q1 FY27 earnings of $3.25 per share, beating estimates, but shares fell 20% due to a revenue miss of $798.2M vs. $830.85M expected. Operating income rose 28% YoY to $196.4M, with margins at 30.9%. Management cited maintenance and fewer operating days for the shortfall but remains optimistic about demand and pricing. The company repurchased $133.9M in stock and launched a $1B buyback program.

Carpenter Technology (CRS) reports strong demand across end-use markets, with aerospace and defense sales up 15% in fiscal 2026. Industrial, consumer, and transportation sales also increased, offsetting a 1.9% decline in medical sales. The company expects fiscal 2027 operating income of $850-$880 million, a 21-25% increase, and targets $1.2-$1.3 billion by fiscal 2029.

Carpenter Technology reported $605M in operating cash flow and $362.3M in adjusted free cash flow for FY26, up 37.4% and 26% YoY. The company expects FY27 operating income of $850M-$880M and adjusted free cash flow of $400M-$430M. It is investing in a $400M expansion project and maintains a strong balance sheet with $892.4M in liquidity. Shares have surged 98.2% over the past year, trading at a forward P/S ratio of 6.85X.

Carpenter Technology (NYSE: CRS) said its board authorized an additional $1.0 billion share repurchase program. It also repurchased the remaining $119.0 million under a prior $400 million program in August 2026. Repurchases may be made via open market and other methods, funded by operating cash and liquidity.