Why Is Amcor (AMCR) Down 5.5% Since Last Earnings Report?

A month has gone by since the last earnings report for Amcor (AMCR). Shares have lost about 5.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Amcor due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Amcor PLC before we dive into how investors and analysts have reacted as of late.

Amcor Q2 Earnings Top Estimates, Sales Miss as Volume Decline Continues

Amcor reported second-quarter fiscal 2026 (ended Dec. 31, 2025) adjusted earnings per share (EPS) of 86 cents, which beat the Zacks Consensus Estimate of 83 cents. The bottom line grew 7.5% from the year-ago quarter. While the results benefited from gains related to the Berry acquisition, persistent volume declines continued to pressure both revenue and overall profits.
Including special items, the company reported net earnings per share of 38 cents compared with 56 cents in the prior-year quarter.

AMCR’s Revenues Reflect Acquisition Impact, Low Volumes Hurt

Total revenues surged 68% year over year to $5.45 billion in the reported quarter. The top line, however, missed the Zacks Consensus Estimate of $5.55 billion.

Around 66% of the growth was attributed to the acquisition. The volume was down 3% from the year-ago quarter while price/mix had no impact on sales. Amcor’s volume growth has been in the negative territory for the past three quarters. Currency had a positive 5% impact. 

Amcor’s Costs Surge, Adjusted EBITDA Margin Expands in Q2

The cost of sales surged 68.6% year over year to $4.41 billion. Gross profit soared 66% year over year to $1.04 billion. The gross margin was 19.1% compared with the year-ago quarter’s 19.3%. SG&A expenses were $584 million, up 98% year over year.

Adjusted operating income was $603 million in the quarter, up 66% from $363 million in the prior-year quarter. The adjusted operating margin was 11.1% compared with 11.2% in the prior-year quarter. 

Adjusted EBITDA in the quarter was $826 million, an 83% increase from the $453 million in the prior-year quarter. Adjusted EBITDA margin was 15.2% compared with 14% in the year-ago quarter.

AMCR’s Segments See Acquisition Gains, Decline in Volumes

Global Flexible Packaging Solutions: Net sales increased 27% year over year to $3.19 billion. Volume dipped 2% year over year as higher volumes in pet food and meat proteins were offset by lower volumes in other nutrition, liquids and unconverted film and foil. Volumes were lower across North America, Latin America and Europe, somewhat offset by growth in the Asia Pacific. The segment’s volumes have been declining for three consecutive quarters.

Price/mix had a favorable 1% impact on sales and acquisition contributed 24%. Currency had a favorable impact of 4%. 

The segment’s adjusted operating income came in at $402 million compared with the prior-year quarter’s $322 million, reflecting $65 million of acquired operating income, favorable cost performance and synergy benefits from the Berry Global acquisition. This was somewhat negated by lower volumes. 

Global Rigid Packaging Solutions: The segment reported net sales of $2.26 billion in the quarter, marking a 210% surge from the year-ago quarter. The acquisition contributed 212% to the growth and currency had a favorable impact of 10%. These gains were offset by a 6% decline in volumes and unfavorable price/mix impact of 6%. 

Volumes were higher in pet food, beauty & wellness and specialty 4 containers but offset by weaker performances in healthcare and foodservice. Region-wise, volumes were in line in North America and lower in Europe, partly offset by volume growth across emerging markets, mainly Latin America. The segment’s volumes have been declining for four consecutive quarters.

The segment’s adjusted operating income came in at $228 million compared with the prior-year quarter’s $53 million. This included $165 million of acquired operating income, cost savings and synergy benefits from the Berry Global acquisition, offset by lower volumes. 

Amcor’s Q2 Cash Flow & Balance Sheet Updates

As of Dec. 31, 2025, Amcor had $1,057 million of cash and cash equivalents compared with $827 million as of June 30, 2025. The company generated $370 million of cash in operating activities in the first half of fiscal 2026 compared with $159 million in the year-ago comparable period.

As of Dec. 31, 2025, Amcor’s net debt totaled $14.08 billion, up from $13.27 billion as of June 30, 2025.

AMCR Maintains FY26 Guidance

Adjusted EPS for fiscal 2026 is expected to be at $4.00-$4.15 (reflecting the one-for-five reverse stock split effected on Jan.14, 2026). The company projects a free cash flow of $1.8-$1.9 billion for fiscal 2026.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted 13.48% due to these changes.

VGM Scores

At this time, Amcor has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Amcor has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Amcor is part of the Zacks Containers - Paper and Packaging industry. Over the past month, Packaging Corp. (PKG), a stock from the same industry, has gained 0%. The company reported its results for the quarter ended December 2025 more than a month ago.

Packaging Corp. reported revenues of $2.36 billion in the last reported quarter, representing a year-over-year change of +10.1%. EPS of $2.32 for the same period compares with $2.47 a year ago.

Packaging Corp. is expected to post earnings of $2.30 per share for the current quarter, representing a year-over-year change of -0.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.5%.

Packaging Corp. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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