Kennametal (NYSE:KMT) Shares Gap Up on Better-Than-Expected Earnings

Kennametal Inc. (NYSE:KMT) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $35.76, but opened at $39.50. Kennametal shares last traded at $39.3640, with a volume of 144,701 shares traded.

The industrial products company reported $0.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.12. The business had revenue of $529.53 million during the quarter, compared to analyst estimates of $514.70 million. Kennametal had a return on equity of 9.46% and a net margin of 5.43%.The company’s revenue for the quarter was up 9.9% on a year-over-year basis. During the same period last year, the company earned $0.25 EPS. Kennametal has set its Q3 2026 guidance at 0.500-0.600 EPS and its FY 2026 guidance at 2.050-2.450 EPS.

Kennametal Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 24th. Shareholders of record on Tuesday, February 10th will be paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Tuesday, February 10th. Kennametal’s payout ratio is presently 65.57%.

Key Stories Impacting Kennametal

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Quarterly beat and margin expansion — Kennametal reported Q2 FY26 adjusted EPS of $0.47 (vs. consensus $0.35) and revenue of ~$530M, with operating and adjusted operating income up ~66–68% year/year; management said volume and margin drivers exceeded outlook. Kennametal Announces Fiscal 2026 Second Quarter Results
• Positive Sentiment: Raised guidance — Management updated FY‑2026 EPS to $2.05–$2.45 and Q3 EPS to $0.50–$0.60, above prior consensus, and lifted revenue outlook; this revision materially improves the company’s near‑term earnings trajectory. Kennametal’s Q2 Earnings & Revenues Top Estimates, Increase Y/Y
• Positive Sentiment: Analyst/coverage lift — Recent pieces highlight Kennametal as a growth opportunity (above‑average financial growth, dividend stability and improving margins), which can support multiple expansion if execution continues. 3 Reasons Why Growth Investors Shouldn’t Overlook Kennametal (KMT)
• Neutral Sentiment: Full disclosure materials available — Earnings call transcript, slide deck and coverage are posted (useful for investors wanting detail on end markets, tungsten dynamics, and margin assumptions). Kennametal Inc. (NYSE:KMT) Q2 2026 Earnings Call Transcript
• Negative Sentiment: Some of the sales lift was driven by “buy‑ahead” amid tungsten pricing—this can represent pulled‑forward demand, creating risk that future quarters normalize and growth moderates. Kennametal Announces Fiscal 2026 Second Quarter Results
• Negative Sentiment: Valuation and volatility considerations — KMT’s P/E and PEG are elevated versus cyclical peers and the stock has a beta >1, so upside from beats may be offset by higher expectations and intraday volatility (reflected in above‑average volume). Kennametal (KMT) Market Data

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on KMT shares. UBS Group raised their target price on shares of Kennametal from $32.00 to $39.00 and gave the stock a “neutral” rating in a report on Thursday. Wall Street Zen raised shares of Kennametal from a “buy” rating to a “strong-buy” rating in a research note on Saturday, November 29th. Barclays boosted their target price on Kennametal from $25.00 to $28.00 and gave the company an “equal weight” rating in a research report on Wednesday, January 7th. Morgan Stanley increased their price target on Kennametal from $27.00 to $29.00 and gave the stock an “equal weight” rating in a report on Monday, January 12th. Finally, The Goldman Sachs Group restated a “sell” rating and set a $28.00 price objective on shares of Kennametal in a report on Tuesday, January 27th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $30.83.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Gamco Investors INC. ET AL raised its position in Kennametal by 3.4% during the 4th quarter. Gamco Investors INC. ET AL now owns 243,300 shares of the industrial products company’s stock valued at $6,912,000 after purchasing an additional 8,000 shares in the last quarter. Gabelli Funds LLC increased its stake in shares of Kennametal by 1.6% during the fourth quarter. Gabelli Funds LLC now owns 146,500 shares of the industrial products company’s stock valued at $4,162,000 after buying an additional 2,306 shares during the period. Versor Investments LP raised its holdings in shares of Kennametal by 10.8% in the fourth quarter. Versor Investments LP now owns 13,966 shares of the industrial products company’s stock valued at $397,000 after acquiring an additional 1,366 shares in the last quarter. Strs Ohio purchased a new stake in Kennametal in the fourth quarter worth about $330,000. Finally, Danske Bank A S purchased a new stake in Kennametal in the fourth quarter worth about $31,000.

Kennametal Trading Down 0.4%

The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.18 and a current ratio of 2.55. The company has a market capitalization of $2.91 billion, a P/E ratio of 26.72, a PEG ratio of 3.23 and a beta of 1.50. The company’s fifty day simple moving average is $31.00 and its 200-day simple moving average is $25.68.

About Kennametal

Kennametal Inc is a global industrial technology company that designs and manufactures advanced materials, tooling systems, and engineered components for a range of demanding applications. Its solutions support precision metalworking, earthmoving, and wear-resistant environments, catering to customers seeking enhanced productivity, longer tool life, and reduced operating costs.

The company’s product portfolio spans indexable cutting tools, solid round tools, tool holders, metalworking fluid systems, wear parts, ceramics and composites, and custom-engineered components.