Q4 Earnings Per Share Obliterate Estimates by 74%
Argan Inc. (AGX) reported a standout fourth quarter for fiscal 2026, with earnings per share (EPS) of $3.47. This figure dramatically surpassed the consensus analyst estimate of $1.99, marking a positive surprise of 74.37%. The company's net income soared to $49.2 million, a significant increase from the $31.4 million reported in the same quarter a year ago.
Revenue also showed solid growth, rising nearly 13% year-over-year to $262.1 million and beating revenue forecasts. This marks the third time in the last four quarters that Argan has surpassed consensus EPS estimates, signaling consistent operational strength. For the full fiscal year, the company posted a profit of $137.8 million on $944.6 million in revenue.
Data Center Demand Fuels $2.9 Billion Project Backlog
The company's impressive performance is directly linked to growing demand for its construction services, particularly from the build-out of data centers required for artificial intelligence (AI) technology. Argan secured $2.5 billion in new contracts during the fiscal year, feeding into a total project backlog valued at $2.9 billion. This substantial backlog provides clear visibility into future revenue streams.
Reflecting this positive outlook, JPMorgan analyst Michael Fairbanks upgraded his recommendation on Argan stock to "Overweight" from a previous "Neutral" rating. He also established a price target of $550 per share, citing the durable trend of AI infrastructure development as a key long-term tailwind for the company.
Stock Gains 39.6% in 2026, Defying Market Trend
Investor response to the strong earnings and positive outlook has been decisive. Argan's stock price climbed by almost 20% in the week of the announcement. The company's shares have demonstrated remarkable strength throughout the year, adding 39.6% since the beginning of 2026. This performance starkly contrasts with the S&P 500, which has declined 3.7% over the same period.
Over a longer horizon, Argan's stock has more than tripled in the last 12 months. This powerful rally underscores investor confidence in the company's strategy of capitalizing on the critical need for new power and industrial infrastructure.
