HEI earnings analysis
What we found in HEI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
HEICO delivered a strong Q3 fiscal 2026, with revenue of $1.41305 billion and diluted EPS of $1.67, up approximately 22.9% and 32.5% year over year and above consensus by 4.9% and 10.6%, respectively. Operating margin was 25.1%, although this was modestly below the 25.5% reported for Q2 2026. The extracted filing text does not provide balance-sheet, cash-flow, segment, or quantitative guidance details; the principal newly disclosed concern is financing exposure from the 4.950% 2031 and 5.400% 2036 notes.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and EPS exceeded consensus
- Q3 revenue was $1.41305 billion and diluted EPS was $1.67, exceeding consensus estimates of $1.3476 billion and $1.51 by approximately 4.9% and 10.6%, respectively.
- Operating margin remained elevated
- Operating margin expanded to 25.1% in Q3 from 23.1% in the prior-year quarter and 25.5% in Q2 2026, indicating strong profitability despite a sequential 0.4 percentage-point decline.
- Controls were assessed effective
- The filing states that management concluded disclosure controls and procedures were effective as of the end of the period, and that there were no material changes to internal control over financial reporting during the third quarter ended July 31, 2026.
- Strong year-over-year earnings growth
- The filing identifies $1.41305 billion of Q3 revenue and $1.67 of diluted EPS, while the prior-year Q3 comparison was $1.15 billion of revenue and $1.26 of diluted EPS, representing year-over-year growth of approximately 22.9% and 32.5%, respectively.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- New long-term debt raises interest burden
- HEICO issued 4.950% notes due 2031 and 5.400% notes due 2036 under indentures dated July 16, 2026. These debt instruments increase fixed interest obligations and refinancing exposure versus the prior reporting period.
- Credit-facility terms were amended
- The filing references a Fourth Amendment to the revolving credit agreement effective June 11, 2026. Changes to the credit facility may affect borrowing capacity, covenant flexibility, or financing costs, although the extracted text does not quantify those effects.
- Market-risk assessment unchanged
- Management reported that there had been no material changes in HEICO's assessment of market-risk sensitivity from the October 31, 2025 Form 10-K. While this is not a new market-risk exposure, it leaves existing sensitivity to market conditions unchanged.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.67
- Operating margin
- 25.1%
What they said about what is next.
No quantitative revenue or EPS guidance was provided in the extracted 10-Q text. Management's qualitative outlook, as reported with the Q3 results, calls for increased net sales at both operating groups for the remainder of fiscal 2026.
The filing reads better than the one before it.
What came before.
- 10-Q · May 29, 2026
- HEICO Corporation reported strong Q2 FY2026 results with a record net income of $233.8 million, translating to an EPS of $1.66, marking a 49% increase year-over-year. Revenue reached $1.376 billion, exceeding estimates…
- 10-Q · February 27, 2026
- HEICO reported Q1 FY2026 revenue of $1,178,582,000 and GAAP diluted EPS of $1.35, both above consensus. Revenue rose 14.4% year-over-year but declined versus the prior quarter; gross margin compressed to 38.6% and…
- 10-Q · May 29, 2025
- HEICO reported quarterly net sales of $1,097,820,000 and diluted EPS of $1.12 for the three months ended April 30, 2025, with operating income of $248,152,000. Gross margin expanded to 39.9% and operating margin to…
- 10-Q · February 28, 2025
- HEICO reported Q1 net sales of $1,030,222,000 and diluted EPS of $1.20, both up materially year-over-year and ahead of consensus. Gross margin expanded to 39.4% and operating margin to 22.0%; operating cash flow was…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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