AECOM (ACM) delivered a modest earnings beat in fiscal Q2, with results slightly ahead of consensus as strong performance in the Americas offset softer international trends impacted by geopolitical disruption in the Middle East, RBC Capital said in a note Tuesday.

The analyst said constant-currency revenue growth was driven by strong execution in the Americas, while international operations declined due to regional headwinds, though margins expanded year over year on efficiency gains and early AI-driven productivity and win-rate improvements.

RBC pointed to record backlog growth across both the Americas and international segments, supporting stronger visibility into future demand, while management raised fiscal 2026 earnings per share guidance and reaffirmed long-term targets driven by steady demand in transportation, water, and environmental services.

The note also said AECOM's shift toward higher-margin advisory and program management services, along with growing opportunities in PFAS remediation as it builds capabilities to support long-term environmental cleanup demand.

RBC maintained its outperform rating on the stock and lowered its price target to $111 from $142.

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