Innovative Solutions and Support (NASDAQ:ISSC) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

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

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 Stock Down 6.5%

NASDAQ:ISSC traded down $1.13 during trading hours on Friday, reaching $16.28. The company’s stock had a trading volume of 757,114 shares, compared to its average volume of 602,086. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.96 and a quick ratio of 1.53. The company has a market cap of $289.46 million, a price-to-earnings ratio of 15.50 and a beta of 0.71. Innovative Solutions and Support has a one year low of $8.13 and a one year high of $30.94. The business’s 50-day moving average is $23.86 and its 200-day moving average is $18.85.

Institutional Trading of Innovative Solutions and Support

A number of institutional investors and hedge funds have recently made changes to their positions in ISSC. Caitong International Asset Management Co. Ltd raised its stake in shares of Innovative Solutions and Support by 7,484.2% in 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 acquiring an additional 1,422 shares in the last quarter. Global Retirement Partners LLC acquired a new position in Innovative Solutions and Support during the fourth quarter valued at approximately $36,000. Bank of America Corp DE grew its holdings 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 valued at $114,000 after purchasing an additional 7,792 shares during the last quarter. Quantbot Technologies LP acquired a new position in Innovative Solutions and Support during the third quarter valued at approximately $160,000. Finally, American Century Companies Inc. raised its position in shares of Innovative Solutions and Support by 21.9% in the second quarter. American Century Companies Inc. now owns 12,386 shares of the aerospace company’s stock valued at $172,000 after purchasing an additional 2,228 shares during the period. Institutional investors and hedge funds own 28.53% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on ISSC shares. Weiss Ratings raised Innovative Solutions and Support from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, February 23rd. Wall Street Zen upgraded Innovative Solutions and Support from a “hold” rating to a “buy” rating in a report on Saturday, March 28th. 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.com, the company has a consensus rating of “Strong Buy” and a consensus price target of $16.25.

Innovative Solutions and Support Company Profile

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.