Kennametal (NYSE:KMT) Shares Gap Up on Strong Earnings

Kennametal Inc. (NYSE:KMT)’s share price gapped up prior to trading on Wednesday following a better than expected earnings announcement. 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, topping analysts’ consensus estimates of $0.35 by $0.12. Kennametal had a net margin of 4.76% and a return on equity of 8.35%. The firm had revenue of $529.53 million during the quarter, compared to the consensus estimate of $514.70 million. During the same quarter in the prior year, the company earned $0.25 EPS. The company’s revenue was up 9.9% on a year-over-year basis. 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 Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, February 24th. Stockholders of record on Tuesday, February 10th will be paid a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Tuesday, February 10th. Kennametal’s dividend payout ratio (DPR) is currently 65.57%.

Key Stories Impacting Kennametal

Here are the key news stories impacting Kennametal this week:

• Positive Sentiment: Q2 beat and strong underlying performance: Kennametal reported adjusted EPS of $0.47 (vs. consensus ~$0.35) and revenue of ~$529.5M, up ~9.9% year‑over‑year; adjusted operating income rose materially year‑over‑year. Kennametal Announces Fiscal 2026 Second Quarter Results
• Positive Sentiment: Management raised guidance: FY‑2026 adjusted EPS was increased to $2.05–$2.45 (well above prior consensus) and revenue guidance was raised to roughly $2.2–$2.3B — a clear catalyst for multiple expansion. Kennametal Inc (KMT) Q2 2026 Earnings Call Highlights: Strong Organic Growth and Improved …
• Positive Sentiment: Market reaction / coverage: Several outlets note the sales surprise and upgraded outlook, which is supporting buy interest. Kennametal shares climb after Q2 beat and upgraded full-year guidance
• Neutral Sentiment: Analyst writeups and metrics breakdowns are circulating (Zacks, MarketBeat), summarizing the beat and key ratios for investors doing due diligence. Kennametal (KMT) Surpasses Q2 Earnings and Revenue Estimates
• Neutral Sentiment: Investor commentary on capital allocation — including dividend consistency vs. investment — is being discussed; useful for longer‑term income investors but less relevant to the near‑term price move. Does Kennametal’s (KMT) Steady Dividend and Revenue Outlook Reveal Its True Capital Allocation Priorities?
• Negative Sentiment: One caution: management said part of the quarter’s volume came from customer “buy‑ahead” tied to tungsten pricing. That pull‑forward can create tougher comparisons in subsequent quarters if demand normalizes. Kennametal Announces Fiscal 2026 Second Quarter Results

Wall Street Analyst Weigh In

Several analysts recently issued reports on KMT shares. JPMorgan Chase & Co. increased their price target on Kennametal from $25.00 to $37.00 and gave the company an “underweight” rating in a report on Wednesday, January 14th. Zacks Research upgraded Kennametal from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, November 12th. Barclays raised their target price on Kennametal from $25.00 to $28.00 and gave the company an “equal weight” rating in a report on Wednesday, January 7th. Morgan Stanley upped 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, Wall Street Zen raised shares of Kennametal from a “buy” rating to a “strong-buy” rating in a research report on Saturday, November 29th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $29.67.

Institutional Trading of Kennametal

Several institutional investors have recently added to or reduced their stakes in the stock. Brandes Investment Partners LP grew its holdings in Kennametal by 65.9% during the 2nd quarter. Brandes Investment Partners LP now owns 8,154,119 shares of the industrial products company’s stock worth $187,219,000 after acquiring an additional 3,238,093 shares in the last quarter. American Century Companies Inc. raised its stake in shares of Kennametal by 44.0% in the 3rd quarter. American Century Companies Inc. now owns 4,221,461 shares of the industrial products company’s stock valued at $88,355,000 after purchasing an additional 1,289,624 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of Kennametal by 63.2% during the second quarter. Arrowstreet Capital Limited Partnership now owns 1,381,379 shares of the industrial products company’s stock worth $31,716,000 after purchasing an additional 534,978 shares during the last quarter. Apollo Management Holdings L.P. acquired a new position in Kennametal in the second quarter worth about $8,794,000. Finally, Russell Investments Group Ltd. grew its stake in Kennametal by 828.9% in the second quarter. Russell Investments Group Ltd. now owns 414,132 shares of the industrial products company’s stock worth $9,509,000 after purchasing an additional 369,548 shares in the last quarter.

Kennametal Stock Performance

The company has a fifty day moving average of $30.79 and a two-hundred day moving average of $25.60. The stock has a market capitalization of $2.92 billion, a P/E ratio of 31.49, a price-to-earnings-growth ratio of 4.24 and a beta of 1.50. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.60 and a quick ratio of 1.18.

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.