Innovative Solutions and Support (NASDAQ:ISSC) Posts Earnings Results

Innovative Solutions and Support (NASDAQ:ISSC) released its quarterly earnings results on Thursday. The aerospace company reported $0.26 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.06, FiscalAI reports. Innovative Solutions and Support had a net margin of 18.82% and a return on equity of 28.46%. The company had revenue of $22.37 million for the quarter, compared to the consensus estimate 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 Price Performance

Shares of ISSC traded down $1.14 during mid-day trading on Friday, hitting $16.27. The company’s stock had a trading volume of 757,118 shares, compared to its average volume of 506,336. The firm has a 50-day moving average price of $23.60 and a 200 day moving average price of $18.83. The stock has a market capitalization of $289.25 million, a price-to-earnings ratio of 17.31 and a beta of 0.71. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.96 and a quick ratio of 1.53. Innovative Solutions and Support has a fifty-two week low of $8.13 and a fifty-two week high of $30.94.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in ISSC. Stifel Financial Corp purchased a new position in shares of Innovative Solutions and Support in the fourth quarter worth approximately $5,529,000. Marshall Wace LLP increased its position in shares of Innovative Solutions and Support by 57.4% in the fourth quarter. Marshall Wace LLP now owns 754,488 shares of the aerospace company’s stock worth $14,290,000 after acquiring an additional 275,286 shares in the last quarter. Millennium Management LLC increased its position in shares of Innovative Solutions and Support by 1,234.9% in the fourth quarter. Millennium Management LLC now owns 280,579 shares of the aerospace company’s stock worth $5,314,000 after acquiring an additional 259,561 shares in the last quarter. Ancora Advisors LLC purchased a new position in shares of Innovative Solutions and Support in the third quarter worth approximately $2,031,000. Finally, Arrowstreet Capital Limited Partnership increased its position in shares of Innovative Solutions and Support by 415.2% in the second quarter. Arrowstreet Capital Limited Partnership now owns 157,250 shares of the aerospace company’s stock worth $2,183,000 after acquiring an additional 126,729 shares in the last quarter. 28.53% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

ISSC has been the topic of a number of recent analyst reports. 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. Wall Street Zen upgraded shares of Innovative Solutions and Support from a “hold” rating to a “buy” rating in a research report on Saturday, March 28th. Three equities research analysts have rated the stock with a Strong Buy rating and two have issued a Buy rating to the company. Based on data from MarketBeat.com, Innovative Solutions and Support presently has a consensus rating of “Strong Buy” and an average price target 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.