Innovative Solutions and Support (NASDAQ:ISSC) Issues Quarterly Earnings Results

Innovative Solutions and Support (NASDAQ:ISSC) released its quarterly earnings results on Thursday. The aerospace company reported $0.26 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.06, FiscalAI reports. Innovative Solutions and Support had a return on equity of 30.44% and a net margin of 21.02%.The business had revenue of $22.37 million during the quarter, compared to analysts’ expectations of $21.59 million.

Here are the key takeaways from Innovative Solutions and Support’s conference call:

• Innovative Aerosystems reported second-quarter revenue of $22.4 million, up 2% year over year, with organic growth in commercial aerospace and business aviation offsetting the expected decline in F-16 revenue.
• The company said its three recent acquisitions are expected to add about $10 million of annual revenue at roughly 50% blended gross margins, advancing its $250 million revenue target.
• Management highlighted strong traction from the acquired autopilot product lines, saying customer inquiries have surged and that the deals significantly broaden its integrated cockpit and autonomous flight offerings across commercial, business aviation, and defense markets.
• F-16 production has normalized after recertification and testing issues were resolved, and management expects the program to run at roughly $3 million to $5 million per quarter going forward, with backlog still supporting future deliveries.
• The company generated $7.7 million of free cash flow in the first half of fiscal 2026 and ended the quarter with net leverage of 1.7x, giving it financial flexibility to keep pursuing acquisitions and growth investments.

Innovative Solutions and Support Trading Down 4.8%

ISSC traded down $0.84 on Friday, hitting $16.57. The company had a trading volume of 459,852 shares, compared to its average volume of 598,673. The business’s fifty day simple moving average is $23.86 and its 200 day simple moving average is $18.85. The company has a quick ratio of 1.53, a current ratio of 2.96 and a debt-to-equity ratio of 0.31. Innovative Solutions and Support has a 12-month low of $8.13 and a 12-month high of $30.94. The company has a market cap of $294.61 million, a PE ratio of 15.80 and a beta of 0.71.

Institutional Investors Weigh In On Innovative Solutions and Support

Several institutional investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd raised its holdings in Innovative Solutions and Support by 7,484.2% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,441 shares of the aerospace company’s stock valued at $27,000 after buying an additional 1,422 shares during the period. Global Retirement Partners LLC purchased a new position in Innovative Solutions and Support during the fourth quarter worth $36,000. Bank of America Corp DE boosted its stake in Innovative Solutions and Support by 589.9% during the third quarter. Bank of America Corp DE now owns 9,113 shares of the aerospace company’s stock worth $114,000 after buying an additional 7,792 shares during the period. American Century Companies Inc. increased its position in Innovative Solutions and Support by 21.9% during the second quarter. American Century Companies Inc. now owns 12,386 shares of the aerospace company’s stock valued at $172,000 after acquiring an additional 2,228 shares during the last quarter. Finally, Quantbot Technologies LP purchased a new stake in shares of Innovative Solutions and Support in the third quarter valued at $160,000. 28.53% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Wall Street Zen upgraded Innovative Solutions and Support from a “hold” rating to a “buy” rating in a research report on Saturday, March 28th. Weiss Ratings upgraded shares of Innovative Solutions and Support from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, February 23rd. Four equities research analysts have rated the stock with a Strong Buy rating and two have given a Buy rating to the company’s stock. According to data from MarketBeat, Innovative Solutions and Support has an average rating of “Strong Buy” and a consensus target price of $16.25.

About Innovative Solutions and Support

Innovative Solutions and Support, Inc (NASDAQ: ISSC) is a provider of technology solutions and mission support services to U.S. federal government agencies, with a focus on defense, intelligence, and national security programs. The company delivers integrated program management, systems engineering, and advanced IT infrastructure support designed to enhance operational readiness and maintain secure, scalable environments for mission-critical operations.

Its core service offerings include systems integration, custom software development, data analytics, cybersecurity, and logistics management.