Innovative Solutions & Support Q3 revenue beats estimates on commercial and business aviation growth

Innovative Solutions and Support

13/08/2026 13:39

Overview
US avionic solutions provider's fiscal Q3 revenue rose 11%, beating analyst expectations
Adjusted EPS for fiscal Q3 beat consensus
Company completed acquisition of Aydin Displays in July 2026

Outlook
Company expects to finish fiscal 2026 on a positive note, citing strength in key markets
Company sees recent acquisitions enhancing its integrated avionics platform and customer value proposition
Company remains encouraged by its business development pipeline and future growth opportunities

Result Drivers
COMMERCIAL AND BUSINESS AVIATION GROWTH - Co said Q3 revenue rose on strong organic growth across commercial and business aviation markets
FAVORABLE REVENUE MIX - Gross margin improvement attributed to revenue growth and favorable mix within commercial aftermarket business, as well as timing of expense recognition related to F-16 transition
RECENT ACQUISITIONS - Co said recent acquisitions, including Aydin Displays, contributed to Q3 results and expanded capabilities in military, naval and ground defense sectors

Company press release: ID:nBw1tPSBza

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$26.70 mln
$24.31 mln (3 Analysts)
Q3 Adjusted EPS
Beat
$0.33
$0.22 (3 Analysts)
Q3 EPS
 
$0.25
 
Q3 Net Income
 
$4.50 mln
 
Q3 Gross Profit
 
$13.80 mln
 
Q3 Orders
 
$22.70 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Innovative Solutions and Support Inc is $27.00, about 34.1% above its August 12 closing price of $20.13
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads
Aug 11 - Astronics Q2 revenue beats estimates on aerospace demand
Aug 13 - AIRO Group beats Q2 revenue estimates, keeps FY view
Aug 12 - Canada's CAE Q1 adjusted EPS beats estimates on defense segment strength

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)