Innovative Solutions Q2 revenue beats estimates

Innovative Solutions and Support

14/05/2026 14:07

Overview

US avionics supplier's fiscal Q2 revenue rose 2%, beating analyst expectations

Adjusted EPS for fiscal Q2 fell from prior year

Company completed three acquisitions to expand recurring aftermarket revenue

Outlook

Company expects business to continue on a favorable growth trajectory for the rest of fiscal 2026

Company projects recent acquisitions to add $10 mln in annual revenue at about 50% gross margin

F-16 manufacturing levels expected to normalize in the third quarter of 2026

Result Drivers

SALES MIX SHIFT - Revenue growth driven by strong commercial aftermarket and business aviation, offsetting lower F-16 program sales due to timing of approvals and prior-year transition effects

HIGHER OPERATING EXPENSES - Increased R&D spending and one-time acquisition costs raised operating expenses, affecting profitability

Company press release: ID:nBw8ChzMsa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$22.40 mln
$21.84 mln (4 Analysts)
Q2 EPS
$0.19
Q2 Net Income
$3.40 mln
Q2 Gross Profit
$11.40 mln
Q2 Orders
$24.70 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 $26.90, about 30.6% above its May 13 closing price of $20.59

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 25 three months ago

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.)