10-Q · May 15, 2026
Innovative Solutions & Support, Inc. reported strong Q2 2026 financial results, with net sales of $22.4 million, exceeding estimates of $21.3 million, and an EPS of $0.26, surpassing estimates of $0.19. The company…
Earnings analysis · 10-Q
ISSC earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Innovative Solutions and Support delivered a strong fiscal third quarter, with revenue of $26.732 million and diluted EPS of $0.25, up from $22 million and $0.19 in the prior quarter and ahead of consensus by…
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Innovative Solutions and Support delivered a strong fiscal third quarter, with revenue of $26.732 million and diluted EPS of $0.25, up from $22 million and $0.19 in the prior quarter and ahead of consensus by approximately 9.9% and 13.6%, respectively. Nine-month free cash flow reached $12.3 million and backlog stood at $82.9 million, while management cited strength across commercial, business jet and military markets. The filing provides no formal numeric revenue or EPS guidance, but management expects to finish fiscal 2026 on a positive note.
Reported figures
- Earnings per share
- $0.25
What stood out
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Revenue growth and consensus beat
Revenue was $26.732 million, up from $22 million in 2026 Q2 and $24 million in 2025 Q3, representing approximately 21.5% sequential growth and 11.4% year-over-year growth. Revenue exceeded the $24.326 million consensus estimate by approximately 9.9%.
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EPS beat and sequential improvement
Diluted EPS was $0.25, compared with $0.19 in 2026 Q2 and $0.14 in 2025 Q3. EPS exceeded the $0.22 consensus estimate by $0.03, or approximately 13.6%.
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Strong nine-month cash generation
Nine-month free cash flow was $12.3 million, indicating strong cash generation through the first nine months of fiscal 2026.
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Backlog supports revenue visibility
Backlog was reported at $82.9 million, providing substantial contracted demand visibility relative to the $26.732 million quarterly revenue base.
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Demand remains broad-based
Management cited continued strength across commercial, business jet and military markets, along with recent acquisitions, as drivers of its expectation to finish fiscal 2026 positively.
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Effective controls and stable reporting
Management concluded that disclosure controls were effective as of June 30, 2026, and reported no changes during the three and nine months ended June 30, 2026 that materially affected internal control over financial reporting.
What to watch
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Variable-rate cash exposure
The company’s cash equivalents are invested in variable-rate money market funds. A hypothetical +/-1% change in interest rates would affect interest income and cash flows, although management stated it would not have a material impact on results, financial position or cash flows.
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Existing risks remain unchanged
The filing states that there were no material changes to previously disclosed risk factors as of June 30, 2026 compared with the fiscal year ended September 30, 2025. Existing risks therefore remain applicable even though no new material risk factor was identified.
Management's outlook
Management indicated it expects to finish fiscal 2026 on a positive note, supported by commercial, business jet and military demand and recent acquisitions. No formal numeric revenue or EPS guidance was provided.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.