Amentum Holdings, Inc. (AMTM) delivered a solid fourth quarter that has Wall Street rethinking its outlook on the defense contractor. The company reported results after Monday's close that beat expectations on both the top and bottom lines, prompting several analysts to raise their price targets.

The numbers tell a strong story. Amentum posted adjusted earnings per share of 63 cents, topping the analyst consensus of 59 cents. Revenue came in even more impressive at $3.925 billion, up 77% year over year and well above the Street's expectation of $3.613 billion. That's a beat of over $300 million on the revenue line, which tends to get investors' attention.

For fiscal 2026, the company guided revenue between $13.95 billion and $14.30 billion. That range includes the analyst consensus estimate of $14.08 billion, suggesting management feels confident about maintaining momentum without getting too far ahead of themselves.

CEO John Heller sounded optimistic about what's ahead. "Amentum's strong fourth quarter results cap off what has been a remarkable first year as a public company. Financial performance exceeded our expectations, demonstrating the resilience of our business and its alignment with enduring global trends and the mission critical priorities of our customers," Heller said. "Looking ahead, Amentum is well positioned to benefit from tailwinds in key strategic growth areas including global nuclear energy, critical digital infrastructure, and space systems and technology. With a robust financial backdrop, recognized leadership in accelerating global markets, and a team focused on delivering innovative solutions, we enter fiscal year 2026 with significant momentum and excitement for the future."

Despite the upbeat results, Amentum shares dipped 0.6% to $29.82 on Wednesday. Markets can be funny that way, though analysts are clearly warming to the stock.

Here's how Wall Street responded to the earnings report:

• Citizens analyst Trevor Walsh kept his Market Outperform rating and bumped his price target from $30 to $35.
• Morgan Stanley analyst Kristine Liwag made the biggest move, upgrading the stock from Underweight to Equal-Weight while raising her price target from $20 to $35.
• RBC Capital analyst Ken Herbert maintained his Sector Perform rating but increased his target from $26 to $30.
• JP Morgan analyst Seth Seifman stuck with his Neutral rating while lifting his price target from $30 to $34.

The analyst response suggests Wall Street sees Amentum as a more compelling story than it did just a few days ago, even if some remain cautious with neutral-equivalent ratings.