Amcor 2026 Q1 Earnings Net Income Surges 35.8% Despite EPS Drop

Amcor (AMCR) reported its fiscal 2026 Q1 earnings on Nov 6, 2025, delivering a 71.3% year-over-year revenue increase to $5.75 billion. The results met expectations for revenue but fell slightly short of consensus estimates. The company reaffirmed fiscal 2026 guidance, maintaining adjusted EPS targets of $0.80–$0.83 and free cash flow projections of $1.8–$1.9 billion.

Revenue

Amcor’s total revenue surged 71.3% to $5.75 billion in Q1 2026, driven by the full-year integration of Berry Global. Flexibles contributed $3.26 billion, reflecting a 27.6% year-over-year increase, while Rigid Packaging added $2.49 billion, a 211% surge. The acquisition accounted for 70% of the revenue growth, with price/mix adjustments and cost pass-through further supporting the top line.

Earnings/Net Income

Despite a 14.4% decline in EPS to $0.11, Amcor’s net income rose 35.8% to $262 million, underscoring improved profitability. The company has maintained profitability for nine consecutive years, a testament to its operational resilience.

Post-Earnings Price Action Review

The strategy of buying Amcor shares after a revenue decline and holding for 30 days showed mixed performance over three years. While the total return reached 15%, volatility was significant, with a 20% drawdown in the first 30 days. Recovery was gradual, aided by a dividend hike and core business focus. Dividends provided stability, offsetting short-term price declines. Long-term EPS growth and market sentiment ultimately supported the stock’s recovery.

CEO Commentary

CEO Peter Konieczny highlighted the successful Berry Global integration, with $38 million in Q1 synergies and $260 million expected in FY2026. He emphasized margin improvements, disciplined cost management, and strategic divestitures of non-core assets. Konieczny expressed confidence in achieving robust earnings and free cash flow growth through operational excellence.

Guidance

Amcor reaffirmed FY2026 adjusted EPS of $0.80–$0.83 (12–17% growth) and free cash flow of $1.8–$1.9 billion. The company anticipates $260 million in FY2026 synergy benefits and $650 million by FY2028, projecting over 30% EPS growth by 2028.

Additional News

1. Dividend Hike: Amcor increased its quarterly dividend to $0.13 per share, signaling confidence in shareholder returns.

2. Berry Integration Progress: The company achieved $38 million in Q1 synergies, with $260 million expected in FY2026.

3. Asset Divestitures: Amcor announced agreements to sell two non-core businesses for $100 million, accelerating portfolio optimization.

Amcor’s Q1 results reflect a strategic shift toward core operations, with revenue growth outpacing expectations and profitability strengthening. While EPS declined, net income gains and synergy realization bolster long-term optimism. Investors should monitor the North American beverage business review and upcoming asset sales for further catalysts.