Q2 26 EPS
$1.18
BEAT +13.65%
Est. $1.04
Q2 26 Revenue
$795.3M
BEAT +4.49%
Est. $761.1M
vs S&P Since Q2 26
+35.5%
BEATING MARKET
AIR +44.5% vs S&P +9.0%
Market Reaction
Did AIR Beat Earnings? Q2 2026 Results
AAR Corp kicked off fiscal 2026 on a confident note, reporting a blowout second quarter that cleared Wall Street's bar on both the top and bottom lines. Adjusted diluted EPS of $1.18 beat the $1.04 consensus by 13.65%, while revenue of $795.30 millio… Read more AAR Corp kicked off fiscal 2026 on a confident note, reporting a blowout second quarter that cleared Wall Street's bar on both the top and bottom lines. Adjusted diluted EPS of $1.18 beat the $1.04 consensus by 13.65%, while revenue of $795.30 million topped estimates by 4.49% and climbed 15.9% year-over-year, fueled by 12% organic growth and contributions from the quarter's two strategic acquisitions. The standout driver was the Parts Supply segment, where a 32% surge in organic new parts distribution helped push segment sales up 29% to $353.60 million. Adjusted EBITDA margin expanded to 12.1% from 11.4%, and GAAP net income rebounded to $34.60 million after the prior-year quarter had been weighed down by $57.10 million in after-tax FCPA settlement charges, a contrast that underscores how one-time charges can distort underlying performance. Looking ahead, AAR raised its full-year organic sales growth guidance to approaching 11% and now targets total sales growth approaching 17%, with Q3 total sales growth guided at 20-22%.
Key Takeaways
- • 32% organic sales growth in new parts Distribution capturing market share through exclusive Distribution model
- • Sales to government customers increased 23% over same period last year
- • Adjusted EBITDA margin expanded from 11.4% to 12.1% driven by operating leverage
- • ADI acquisition performed above expectations in first quarter of ownership
- • Favorable mix and key program milestones in Integrated Solutions drove 82% adjusted EBITDA growth
AIR YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
AIR Revenue by Segment
With YoY comparisons, source: SEC Filings
“AAR delivered another outstanding quarter, achieving solid results throughout all segments of our business and advancing our strategic objectives through our recent acquisitions. Total sales were up 16%, including organic growth of 12%, led by our Parts Supply business with sales up 29%. Within Parts Supply, new parts Distribution had another exceptional quarter with organic sales growth of 32% as we continue to capture market share through our exclusive Distribution model.”
— John M. Holmes, Q2 2026 Earnings Press Release
AIR Earnings Trends
AIR vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
AIR EPS Trend
Earnings per share: estimate vs actual
AIR Revenue Trend
Quarterly revenue: estimate vs actual
AIR Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 BEAT | $1.16 | $1.25 | +8.07% | $845.1M | +4.00% |
| Q2 26 BEAT | $1.04 | $1.18 | +13.65% | $795.3M | +4.49% |
| Q1 26 BEAT | $0.98 | $1.08 | +9.76% | $739.6M | +7.27% |
| Q4 25 BEAT FY | $1.01 | $1.16 | +15.05% | $754.5M | +8.44% |
| FY Full Year | $3.76 | $3.91 | +4.04% | $2.78B | +2.22% |
| Q3 25 BEAT | $0.96 | $0.99 | +2.70% | $678.2M | -2.99% |