Amcr Shares Plunge 1.88% on Earnings Misses and Sector-Wide Pressures

Amcor (AMCR) shares fell 1.88% on Thursday, hitting a level not seen since April 2020, with the stock dropping 2.01% during the session. The decline reflects growing investor concerns amid a challenging earnings outlook and sector-wide pressures.

The recent selloff follows a string of earnings misses and weak guidance from Amcor. The company’s Q4 2025 results fell short of expectations, with earnings per share (EPS) of $0.20 and revenue of $5.08 billion undershooting forecasts. This marks the fifth consecutive quarter of unmet earnings, eroding confidence in management’s ability to stabilize performance. Analysts have downgraded expectations, with the Zacks Rank 4 (Sell) signaling deteriorating fundamentals.

Broader challenges in the Paper & Packaging sector have compounded the pressure. Declining demand, margin compression, and supply chain disruptions have weighed on industry peers, including International Paper and Greif. Amcor’s struggles mirror these trends, as investors question the sustainability of packaging demand and profitability in a high-cost environment.

Analyst coverage remains divided, adding to market uncertainty. While JPMorgan and Jefferies highlight Amcor’s cash flow strength and long-term potential, RBC has revised its synergy estimates from the Berry acquisition downward. This mixed sentiment reflects skepticism about the company’s ability to meet revised targets, despite efforts to achieve $650 million in synergies by fiscal 2028.

Institutional activity further underscores the lack of consensus. Vanguard Group increased its stake in Amcor, signaling cautious optimism, while other entities reduced holdings. These divergent moves highlight the market’s uncertainty about the stock’s near-term trajectory, even as the company maintains a robust 6.4% dividend yield and $2.04 billion in EBITDA.

Technical indicators and options activity suggest a bearish outlook. The stock has fallen below key support levels, and options traders have positioned for further declines, with put options gaining traction. While sustainability initiatives and operational efficiency efforts offer long-term hope, their near-term impact remains unclear. Investors are advised to monitor critical inflection points, such as a breakdown below $8.62, which could signal deeper losses.