Q3 26 EPS
$1.25
BEAT +8.07%
Est. $1.16
Q3 26 Revenue
$845.1M
BEAT +4.00%
Est. $812.6M
vs S&P Since Q3 26
+14.4%
BEATING MARKET
AIR +29.1% vs S&P +14.7%
Market Reaction
Did AIR Beat Earnings? Q3 2026 Results
AAR Corp posted a standout fiscal third quarter, with adjusted diluted EPS of $1.25 clearing the $1.16 consensus by 8.07% and revenue of $845.10 million topping estimates by 4.00% on 24.6% year-over-year growth, signaling that the company's acquisiti… Read more AAR Corp posted a standout fiscal third quarter, with adjusted diluted EPS of $1.25 clearing the $1.16 consensus by 8.07% and revenue of $845.10 million topping estimates by 4.00% on 24.6% year-over-year growth, signaling that the company's acquisition-fueled expansion strategy is delivering ahead of schedule. The headline driver was a surging Parts Supply segment, where sales jumped 45% to $392.50 million on 36% organic growth in new parts distribution and 55% organic growth in government sales, with newly acquired ADI already exceeding management expectations and lifting segment adjusted EBITDA margins 130 basis points to 14.9%. Adjusted EBITDA for the consolidated company rose 26% to $102.10 million, while cash from operations swung to a robust $74.70 million from negative $18.70 million a year ago, pushing net leverage down to a comfortable 2.17x. A freshly secured U.S. Air Force cargo pallet contract worth up to $450 million reinforced the company's government revenue outlook. Management raised full-year FY2026 guidance, now targeting approximately 19% total sales growth and 12% organic growth, with the pending A-R-T acquisition expected to close in Q4.
Key Takeaways
- • 36% organic growth in new parts Distribution activity
- • 55% organic growth in new parts Distribution sales to government customers
- • Continued volume increases in hangars and component repair facilities
- • Trax recurring software revenue expansion
- • Acquisitions of HAECO Americas and ADI contributing to top-line growth
- • ADI exceeding expectations with accretive adjusted operating margins
- • Sales mix shift toward higher-margin offerings
AIR Forward Guidance & Outlook
AAR raised its full-year FY2026 guidance: total sales growth now expected at approximately 19% (up from approaching 17%) and organic sales growth at approximately 12% (up from approaching 11%). For Q4 FY2026, the company guides total sales growth of 19–21%, organic sales growth of 6–8%, adjusted operating margin of 10.2–10.5%, and an estimated tax rate of 28%. The company expects continued margin expansion from sales mix shift to higher-margin offerings and synergy realization from recent acquisitions. The A-R-T acquisition is expected to close in Q4 FY2026. An Investor Day is scheduled for May 12, 2026 in New York.
AIR YoY Financials
Q3 2026 vs Q3 2025, source: SEC Filings
AIR Revenue by Segment
With YoY comparisons, source: SEC Filings
“AAR delivered another outstanding quarter, continuing our momentum. Total sales were up 25%, including 14% organic adjusted sales growth. We saw growth across each of our parts, repair, and software platform activities in the quarter. Our Parts Supply segment grew 45% led by 36% organic growth in our new parts Distribution activity. Within new parts Distribution we saw 55% organic growth in sales to our government customers.”
— John M. Holmes, Q3 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% |