Atlas Copco (ATLKY) AI Stock Analysis

Atlas Copco

(Other OTC:ATLKY)

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Rating:68Neutral

Price Target:$19.50▲(5.29% Upside)

Action:downgraded

Date:10/24/26

The score is driven primarily by strong financial performance (durable margins, moderate leverage, strong free cash flow) and a constructive earnings-call outlook (record orders/revenue and positive demand commentary). These positives are tempered by very weak technical conditions (below key moving averages with negative MACD and oversold momentum) and a relatively high P/E despite a supportive dividend yield.

Positive Factors

Broad-based demand growthRecord orders and growth across every business area indicate broad customer demand rather than reliance on one division. This breadth supports revenue resilience through industrial cycles, while the substantial order pipeline can sustain activity and capacity utilization over the coming quarters.

Negative Factors

Uneven top-line and margin trendRecent performance shows normalization after a stronger period, with slower revenue growth and modestly lower EBIT and net margins. If this pattern persists, it could limit operating leverage and reduce the pace at which Atlas Copco converts demand into earnings growth.

Atlas Copco (ATLKY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $90.35B
Dividend Yield: 2.97%
Average Volume (3M): 282.60K
Price to Earnings (P/E): 32.4
Beta (1Y): 1.34
Revenue Growth: 10.91%
EPS Growth: 8.12%
Country: US
Employees: 56,413
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Atlas Copco Business Overview & Revenue Model

Company Description

Atlas Copco AB engages in the provision of sustainable productivity solutions. The firm offers compressors, vacuum solutions, generators, power tools, and assembly systems. It operates through the following segments: Compressor Technique, Vacuum Tech...

How the Company Makes Money

Atlas Copco makes money primarily by selling industrial equipment and by servicing and supporting that equipment over its lifecycle. Key revenue streams include: (1) Equipment sales: Revenue from the sale of compressors, air treatment and gas equipme...

Atlas Copco Earnings Call Summary

Earnings Call Date:Oct 21, 2026(Q3-2026)|% Change Since:-5.17%|Next Earnings Date:Jan 27, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. Management highlighted record orders and revenue, broad-based organic growth, strong Vacuum Technique and Power Technique performance, improved profitability, solid cash flow, successful acquisitions, and confidence in semiconductor and gas-and-process opportunities. These strengths outweighed the explicitly discussed challenges, including Industrial Technique restructuring, Compressor Technique margin pressure, supply-chain inflation, ramp-up costs, pricing constraints, European macro weakness, and uncertainty related to seasonality and preordering.

Positive Updates

Record Orders and Revenue

Orders received reached a record SEK 52.3 billion, representing 25% organic growth and 29% total growth including 3% structural growth from acquisitions and currency support. Revenue reached a record SEK 47.9 billion, with 11% organic growth.

Negative Updates

Industrial Technique Restructuring and Lower Activity

Industrial Technique recorded a SEK 132 million one-time restructuring cost related to German product companies that were affected by low activity and lower volume. Reported profitability was 18.7%, below management's desired level, although the underlying margin was 20.6%.

Company Guidance

For the next quarter, the company’s forward-looking statement is sequential guidance referring to customer activity, excluding large orders, potential FX swings and seasonality; for most segments, “we believe the activity will remain at the current level,” while the semiconductor market remains “very positive” but the Q3-to-Q4 seasonality is hard to predict. The effective tax rate is expected to be “slightly higher,” “maybe somewhere around the lines of 22.5%”; net financial items are likely to be “on a similar level going forward next quarter”; and for Q4, the currency effect is expected to turn “slightly positive,” with “somewhere around SEK 0.5 billion” likely. Vacuum Technique should continue to see “some level of margin expansion,” but “not as much as we have seen in the past few quarters,” with “a little bit of caution around that margin expansion,” while Compressor Technique pricing actions remain “on the table,” although the company “cannot guarantee that next quarter is going to be changed.”

Atlas Copco Financial Statement Overview

Summary

Strong profitability and business quality: TTM revenue grew ~3.8% with healthy margins (gross ~42%, EBIT ~20%, net ~15.7%), moderate leverage (debt-to-equity ~0.32), and robust free cash flow. Offsets include uneven top-line trajectory (2025 revenue decline vs 2024) and weaker recent operating cash flow conversion vs net income (~0.43x), which warrants monitoring.

Income Statement

86Very Positive

Balance Sheet

82Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	167.49B	158.24B	176.77B	172.66B	141.32B	110.91B
Gross Profit	70.51B	67.88B	75.74B	75.12B	59.38B	46.53B
EBITDA	45.98B	41.02B	47.50B	45.12B	36.82B	29.27B
Net Income	27.77B	24.83B	29.78B	28.04B	23.48B	18.13B
Balance Sheet
Total Assets	235.00B	202.46B	208.54B	182.68B	172.30B	136.68B
Cash, Cash Equivalents and Short-Term Investments	24.56B	15.92B	19.33B	11.22B	11.85B	19.58B
Total Debt	37.94B	34.90B	34.71B	32.71B	36.30B	24.85B
Total Liabilities	116.07B	92.07B	94.78B	91.18B	92.28B	69.05B
Stockholders Equity	118.71B	110.21B	113.70B	91.45B	79.98B	67.63B
Cash Flow
Free Cash Flow	27.99B	26.58B	30.86B	22.63B	16.35B	19.79B
Operating Cash Flow	31.54B	30.61B	36.89B	28.08B	21.38B	23.15B
Investing Cash Flow	-13.65B	-16.56B	-13.32B	-9.39B	-15.50B	-6.12B
Financing Cash Flow	-19.67B	-15.39B	-15.86B	-18.28B	-14.65B	-10.32B

Atlas Copco Technical Analysis

Technical Analysis SentimentNegative

Last Price18.52

Price Trends

50DMA20.35Negative

100DMA20.38Negative

200DMA19.87Negative

Market Momentum

MACD-0.56Positive

RSI38.47Neutral

STOCH47.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLKY, the sentiment is Negative. The current price of 18.52 is below the 20-day moving average (MA) of 19.74, below the 50-day MA of 20.35, and below the 200-day MA of 19.87, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 47.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATLKY.

Atlas Copco Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

ATLKY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IR	85Outperform	$31.06B	22.42	13.53%	0.10%	7.96%	161.68%
EMR	76Outperform	$92.00B	35.91	12.69%	1.35%	4.82%	-1.66%
PH	72Outperform	$113.48B	31.14	25.11%	0.84%	8.31%	4.96%
ITW	70Outperform	$79.16B	24.80	103.39%	2.35%	4.80%	8.78%
ATLKY	68Neutral	$87.37B	32.43	24.21%	2.97%	10.91%	8.12%
ROK	68Neutral	$48.44B	40.80	33.32%	1.27%	11.27%	25.32%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

ATLKY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ATLKY	Atlas Copco	18.52	2.03	12.33%
EMR	Emerson Electric	164.94	27.08	19.64%
ITW	Illinois Tool Works	278.55	41.48	17.50%
PH	Parker-Hannifin Corp	899.82	134.31	17.55%
ROK	Rockwell Automation	436.20	76.47	21.26%
IR	Ingersoll Rand Inc.	80.05	4.13	5.43%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 24, 2026

Atlas Copco AI Stock Analysis