Innovative Solutions Q1 revenue tops estimates aided by commercial aviation demand

Innovative Solutions and Support

12/02/2026 14:08

Overview

Avionic solutions provider's fiscal Q1 revenue rose 36.5%, beating analyst expectations

Adjusted EPS for fiscal Q1 beat analyst expectations

Company completed integration of F-16 component production into Exton facility

Outlook

Company expects improved manufacturing efficiencies from F-16 production integration

Innovative Solutions & Support maintains long-term revenue target of $250 mln

Company anticipates ramp in defense-related revenue in fiscal 2026

Result Drivers

COMMERCIAL AVIATION DEMAND - Revenue growth driven by increased demand in commercial aviation aftermarket and services

F-16 PRODUCTION INTEGRATION - Integration of F-16 component production into Exton facility completed, expected to improve efficiencies

CASH FLOW IMPROVEMENT - Significant increase in free cash flow due to capital-light business model and disciplined financial management

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$21.80 mln
$18.55 mln (5 Analysts)
Q1 Adjusted EPS
Beat
$0.25
$0.10 (3 Analysts)
Q1 EPS
$0.22
Q1 Net Income
$4.10 mln
Q1 Gross Profit
$11.90 mln
Q1 Orders
$19 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 $24.00, about 26.4% above its February 11 closing price of $18.98

The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw99hNPFa

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.)