Innovative Solutions and Support (dba Innovative Aerosystems) reported third quarter fiscal 2026 revenue of $26.7 million, representing a 10.7% year-over-year increase that significantly outperformed analyst expectations. The company achieved a substantial gross margin expansion to 51.7%, driven by a favorable mix in the commercial aftermarket business and increased operating leverage from recent acquisitions.
Key Highlights
- Net sales reached $26.7 million, exceeding the $11.45 million estimate by approximately 133%.
- Product sales totaled $17.5 million, a 5.5% increase year-over-year and more than double the $8.5 million preview estimate.
- Gross profit surged 60.9% to $13.8 million, while gross margin expanded from 35.6% to 51.7%.
- Free cash flow for the first nine months of fiscal 2026 rose 155% to $12.3 million, reflecting the company's capital-light operating model.