Kennametal stock gained 3.71 percent on October 2 despite cash flow risk

Published on 10/04/2026 at 18:07 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Kennametal stock rose to USD 32.85 on October 2, 2026, as fiscal 2026 profit reached USD 342.4 million. Cash flow swung negative and analysts kept a Reduce consensus.

KMT, US4891701009, Illustration mit AI erstellt.

Kennametal stock (ISIN US4891701009) was trading at USD 32.85 on the NYSE on October 2, 2026, at 2:18 p.m. ET, up 3.71 percent from the previous close. The move came as investors weighed fiscal 2026 earnings growth against a sharp cash flow reversal.

Profit climbed, cash flow turned negative

Kennametal reported fiscal 2026 sales of USD 2.36 billion, compared with USD 1.97 billion in fiscal 2025, while net income rose to USD 342.4 million from USD 93.1 million. Those figures appear in the company's proxy materials filed on September 14, 2026, according to StockTitan.

The annual result also exposed a working-capital pressure point. Operating cash flow was negative USD 4.0 million in fiscal 2026, down from positive USD 208.3 million in fiscal 2025, as higher tungsten inventory values and supplier advances absorbed cash, according to Yahoo Finance.

Quarterly beat meets a wide outlook

The fourth quarter of fiscal 2026 produced adjusted EPS of USD 2.96, beating the USD 2.31 consensus by USD 0.65, while revenue reached USD 736.61 million versus USD 725.74 million expected. Revenue increased 42.6 percent year over year, but fiscal 2027 adjusted EPS guidance of USD 4.15 billion to USD 5.15 billion leaves a broad range for a cyclical industrial business, as MarketBeat reported on September 28, 2026.

The central investor question is whether pricing gains and tungsten-related margin benefits persist after the working-capital build. The contrast is clear: quarterly adjusted EPS of USD 2.96 exceeded consensus, while annual operating cash flow moved from positive USD 208.3 million to negative USD 4.0 million.

Analysts see limited upside

MarketBeat reported a Reduce consensus from nine analysts, comprising one Strong Buy, four Holds and four Sells, with an average price target of USD 34.07. That target lies 3.71 percent above the October 2 price of USD 32.85, leaving the market's assessment more cautious than the latest earnings beat.

Stock remains below its yearly high

Kennametal stock was trading at USD 32.85 on the NYSE on October 2, 2026, with volume of 677,060 shares and a market capitalization of USD 2.5 billion. The 52-week range was USD 20.38 to USD 43.81, placing the stock USD 10.96 below its yearly high.