What Has Changed Behind The Rise In ATI Stock?
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Shares of ATI climbed 89.3% over the year ending November 9, 2026, outpacing the 13.5% return for the S&P 500. During that same timeframe, management raised the company’s full-year adjusted profit outlook three times, most recently alongside third-quarter results on October 29, 2026. So how much has the business behind ATI stock actually changed?
ATI’s Sales Growth Picked Up Through Fiscal 2026
The business has changed quite a lot, with almost all of it taking place in the past two quarters. ATI posted a revenue increase of just 0.62% from a year earlier during the first quarter of fiscal 2026. By the fiscal third quarter, revenue reached $1,424 million, marking a 26.5% gain from a year earlier. Profit grew faster than sales, so the operating margin expanded to 19.1%, compared with 14.3% a year earlier.
Management said on the October 29 call that aerospace and defense led that growth, making up nearly 70% of revenue in the quarter. Jet engine revenue alone grew 39% from a year earlier on higher production of next-generation engines.
Did ATI’s Stock Price Rise Faster Than Its Sales?
Yes, by a wide margin. ATI grew its revenue by 9.4% over the twelve months to September 27, 2026. Across a similar span, investors went from paying 2.4 times sales for the stock at the end of September 2025 to 5.1 times at the end of September 2026.
On earnings, ATI trades at 45.3 times its last twelve months, against 21.8 for the S&P 500.
Has ATI’s Cash Flow Risen Along With Profit?
Not as reported. ATI’s operating income rose to $828 million over the twelve months to September 27, 2026, from $631 million a year earlier. Its free cash flow, the cash left after capital spending, slipped to $421 million from $444 million over the same two periods. Both figures are as reported in the company’s filings, not management’s adjusted measure.
Management said on the October 29 call that inventory will be temporarily elevated while ATI brings on new assets to add capacity. Using its own adjusted measure, management reported free cash flow of $223 million for the first nine months of 2026, a 49% increase from a year earlier.
ATI will host an Investor Day on November 12, 2026, where management said it will share more of its outlook for the next three to five years. The company is expected to report fourth-quarter results in February 2027, and full-year free cash flow is the number to watch in that report.
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