Carpenter Technology (CRS) Reports Strong Q2 2026 Earnings, Specialty Alloys Lead Growth

Carpenter Technology Corporation (NYSE:CRS) ranks among billionaire Stanley Druckenmiller’s 10 best stock picks. On January 29, Carpenter Technology Corporation (NYSE:CRS) reported second-quarter fiscal year 2026 earnings results, with an operating income of $155.2 million, a rise of 31% from $118.9 million in the second quarter of the previous year.

Carpenter’s largest division, the Specialty Alloys Operations (SAO), delivered notable performance, with operating income of $174.6 million, up 29% from $135.6 million in Q2 of the last fiscal year. The division also set a historical high in adjusted operating margin at 33.1%, marking its sixteenth consecutive quarter of improved margins.

That said, Aerospace and Defense remains Carpenter’s core growth driver, accounting for 65% of net sales and growing 15% year-over-year. Notably, commercial aerospace bookings increased 23% sequentially, indicating robust sector demand.

Looking ahead, Carpenter Technology Corporation (NYSE:CRS) updated its full-year estimate, predicting adjusted operating income of $680-700 million this year, a 30-33% increase over the previous. Moreover, the company added an operational income target of $765-800 million for fiscal year 2027.

Carpenter Technology Corporation (NYSE:CRS) is a global provider of high-performance specialty alloys and advanced materials for critical applications. The company also offers process solutions such as additive manufacturing and custom-engineered products.

While we acknowledge the potential of CRS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.