RBC Capital has adjusted its valuation view on AECOM Technology Inc. (NYSE:ACM), increasing its 12-month price target to $142.00 from $139.00 and retaining an Outperform rating on the engineering and construction firm. At the market price cited by RBC, $103.86, the new target implies roughly a 37% upside.
The firm framed the change as a response to AECOM's fiscal first quarter results, which RBC said revealed encouraging underlying trends across the business. On a constant currency basis and adjusted for working days, AECOM reported net service revenue growth of 5% for the quarter. Within that, U.S. revenue rose 9% despite the recent U.S. government shutdown - a point RBC flagged as evidence of resilience in the company's domestic operations.
RBC also highlighted AECOM's progress on margin expansion. Adjusted EBITDA rose by 43 basis points year over year, an improvement that occurred even as the company continued to invest in its operations. Management subsequently increased fiscal 2026 guidance for adjusted EBITDA and earnings per share, with RBC pointing to those upward revisions as additional justification for the higher target.
Backing the upgraded outlook is a record backlog of $26.0 billion, representing an 8.7% increase from the prior year. RBC cited the backlog and revised financial outlook as central reasons it expects AECOM to remain well positioned for the remainder of the fiscal year.
Market analysts have responded to the company's reported results and updated guidance. InvestingPro data referenced by RBC shows that six analysts recently raised their earnings expectations for AECOM. The range of analyst price targets spans $110 to $150, and the company carries a market capitalization of $13.4 billion within the Construction & Engineering industry grouping.
Financial details from AECOM's fiscal first quarter underpinned the optimism: adjusted earnings per share of $1.29 exceeded the $1.17 estimate, and reported revenue of $1.85 billion topped the $1.78 billion forecast. The EPS surprise measured roughly 10.26%, reflecting stronger-than-anticipated profitability for the quarter. Investors responded positively to the earnings and revenue beats, and the company's improved guidance and backlog reinforced the constructive reception.
RBC's revised price target and maintained Outperform signal sit alongside analyst targets that vary across the sell-side, illustrating a mix of conviction levels even as consensus direction has moved higher. For those seeking further detail on valuation and analyst insights, a more comprehensive Pro Research Report is available through InvestingPro, which the original note referenced for additional ProTips and valuation context.
Taken together, the quarter's top-line beats, margin expansion during continued reinvestment, raised fiscal 2026 guidance, and the record backlog are the central business developments prompting RBC to lift its target. The company's market capitalization and analyst target range were also noted as context for investors assessing relative upside within the Construction & Engineering sector.
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