Atlas Copco (ACO) AI Stock Analysis

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Atlas Copco

(Frankfurt:ACO)

Rating:―N/A

Action:N/A

Date:―

No summary available

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 (ACO) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 92.21B
Dividend Yield: 2.94%
Average Volume (3M): 146
Price to Earnings (P/E): 33.3
Beta (1Y): 1.07
Revenue Growth: 5.47%
EPS Growth: 2.83%
Country: Germany
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...

Atlas Copco Earnings Call Summary

Earnings Call Date:Oct 21, 2026(Q3-2026)|% Change Since:-3.59%|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 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:ACO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IR	85Outperform	$31.77B	23.69	13.53%	0.09%	7.96%	161.68%
EMR	76Outperform	$92.57B	36.23	12.69%	1.33%	4.82%	-1.66%
PH	72Outperform	$117.07B	32.70	25.11%	0.80%	8.31%	4.96%
ITW	70Outperform	$82.43B	25.52	103.39%	2.29%	4.80%	8.78%
ROK	68Neutral	$48.88B	41.76	33.32%	1.24%	11.27%	25.32%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

DE:ACO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:ACO	Atlas Copco	16.10	2.64	19.60%
EMR	Emerson Electric	166.39	35.99	27.60%
ITW	Illinois Tool Works	286.64	47.69	19.96%
PH	Parker-Hannifin Corp	944.99	177.23	23.08%
ROK	Rockwell Automation	446.38	88.57	24.75%
IR	Ingersoll Rand Inc.	84.56	6.24	7.96%

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.

Atlas Copco AI Stock Analysis