Innovative Solutions and Support (IA)
Market Price (8/20/2026): $21.95 | Market Cap: $392.5 MilSector: Industrials | Industry: Aerospace & Defense
Innovative Solutions and Support (IA)
Market Price (8/20/2026): $21.95Market Cap: $392.5 MilSector: IndustrialsIndustry: Aerospace & Defense
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 20% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 27% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 20%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 15% Megatrend and thematic driversMegatrends include Advanced Aviation & Space. Themes include Flight Systems & Avionics, and Advanced Air Mobility. | Key risksIA key risks include [1] its lack of scale and niche market concentration against much larger competitors, Show more. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 20% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 27% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 20%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 15% |
| Megatrend and thematic driversMegatrends include Advanced Aviation & Space. Themes include Flight Systems & Avionics, and Advanced Air Mobility. |
| Key risksIA key risks include [1] its lack of scale and niche market concentration against much larger competitors, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Innovative Solutions and Support (IA) stock has remained largely at the same level since 4/30/2026 because of the following key factors:
1. Strong Fiscal Q2 and Q3 2026 Earnings Performance Counteracted Downward Pressure.
Innovative Solutions and Support (IA) reported robust financial results during the specified period, with both fiscal Q2 2026 (ending March 31, 2026) and Q3 2026 (ending June 30, 2026) exceeding analyst expectations. For fiscal Q2 2026, the company's Adjusted Net Income per diluted share of $0.26 significantly beat the consensus estimate of $0.176 by 47.73%. Similarly, fiscal Q3 2026 Adjusted EPS of $0.33 surpassed the consensus of $0.22 by $0.11 (a 50% beat). This consistent outperformance, along with strong revenue growth (Q3 net sales increased 10.7% year-over-year to $26.7 million) and high gross margins (51.7% in Q3), provided a strong fundamental underpinning for the stock, preventing a sustained downward trend despite market volatility.
2. Increased Indebtedness from Strategic Acquisitions Tempered Upward Momentum.
While strategic acquisitions, such as the July 2026 acquisition of Aydin Displays for $24.5 million, were positive for IA's long-term growth by expanding capabilities and market exposure, they also led to a notable increase in the company's debt. Total debt more than doubled to $54.3 million at June 30, 2026, compared to $24.1 million at September 30, 2025. Net debt also rose to $43.8 million due to deployments toward acquisitions and capital expenditures. This increased leverage likely introduced a degree of investor caution, mitigating significant upward stock price movement even amid positive operational developments.
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Innovative Solutions and Support (IA) stock has remained largely at the same level since 4/30/2026 because of the following key factors:
1. Strong Fiscal Q2 and Q3 2026 Earnings Performance Counteracted Downward Pressure.
Innovative Solutions and Support (IA) reported robust financial results during the specified period, with both fiscal Q2 2026 (ending March 31, 2026) and Q3 2026 (ending June 30, 2026) exceeding analyst expectations. For fiscal Q2 2026, the company's Adjusted Net Income per diluted share of $0.26 significantly beat the consensus estimate of $0.176 by 47.73%. Similarly, fiscal Q3 2026 Adjusted EPS of $0.33 surpassed the consensus of $0.22 by $0.11 (a 50% beat). This consistent outperformance, along with strong revenue growth (Q3 net sales increased 10.7% year-over-year to $26.7 million) and high gross margins (51.7% in Q3), provided a strong fundamental underpinning for the stock, preventing a sustained downward trend despite market volatility.
2. Increased Indebtedness from Strategic Acquisitions Tempered Upward Momentum.
While strategic acquisitions, such as the July 2026 acquisition of Aydin Displays for $24.5 million, were positive for IA's long-term growth by expanding capabilities and market exposure, they also led to a notable increase in the company's debt. Total debt more than doubled to $54.3 million at June 30, 2026, compared to $24.1 million at September 30, 2025. Net debt also rose to $43.8 million due to deployments toward acquisitions and capital expenditures. This increased leverage likely introduced a degree of investor caution, mitigating significant upward stock price movement even amid positive operational developments.
3. Initial Post-Earnings Volatility Followed by Strong Recovery.
Despite strong fiscal Q2 2026 results reported in May, the stock experienced a sharp decline, including a 15.44% drop on May 14, 2026, and reaching a mid-May low near $16.28 by May 15, 2026. This initial negative market reaction introduced significant volatility within the period. However, the subsequent robust fiscal Q3 2026 earnings announcement in August, combined with strategic initiatives like the Aydin acquisition and new program wins (such as the eVTOL Liberty Flight Deck program), fueled a strong recovery. Shares climbed 34.1% between mid-July and mid-August, effectively bringing the stock's overall price back to a level largely consistent with its position at the beginning of the specified period, reflecting a balance between early volatility and subsequent fundamental-driven gains.
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Stock Movement Drivers
Fundamental Drivers
The -1.5% change in IA stock from 4/30/2026 to 8/19/2026 was primarily driven by a -2.5% change in the company's Net Income Margin (%).| (LTM values as of) | 4302026 | 8192026 | Change |
|---|---|---|---|
| Stock Price ($) | 22.00 | 21.68 | -1.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 90 | 93 | 3.3% |
| Net Income Margin (%) | 21.0% | 20.5% | -2.5% |
| P/E Multiple | 20.5 | 20.3 | -1.1% |
| Shares Outstanding (Mil) | 18 | 18 | -1.1% |
| Cumulative Contribution | -1.5% |
Market Drivers
4/30/2026 to 8/19/2026| Return | Correlation | |
|---|---|---|
| IA | -1.5% | |
| Market (SPY) | 7.0% | 37.2% |
| Sector (XLI) | 4.2% | 50.6% |
Fundamental Drivers
The 17.3% change in IA stock from 1/31/2026 to 8/19/2026 was primarily driven by a 10.6% change in the company's Net Income Margin (%).| (LTM values as of) | 1312026 | 8192026 | Change |
|---|---|---|---|
| Stock Price ($) | 18.49 | 21.68 | 17.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 84 | 93 | 10.5% |
| Net Income Margin (%) | 18.5% | 20.5% | 10.6% |
| P/E Multiple | 20.9 | 20.3 | -2.6% |
| Shares Outstanding (Mil) | 18 | 18 | -1.4% |
| Cumulative Contribution | 17.3% |
Market Drivers
1/31/2026 to 8/19/2026| Return | Correlation | |
|---|---|---|
| IA | 17.3% | |
| Market (SPY) | 11.4% | 43.4% |
| Sector (XLI) | 10.3% | 52.7% |
Fundamental Drivers
The 39.5% change in IA stock from 7/31/2025 to 8/19/2026 was primarily driven by a 43.2% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 7312025 | 8192026 | Change |
|---|---|---|---|
| Stock Price ($) | 15.54 | 21.68 | 39.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 65 | 93 | 43.2% |
| Net Income Margin (%) | 16.6% | 20.5% | 23.4% |
| P/E Multiple | 25.2 | 20.3 | -19.5% |
| Shares Outstanding (Mil) | 18 | 18 | -1.9% |
| Cumulative Contribution | 39.5% |
Market Drivers
7/31/2025 to 8/19/2026| Return | Correlation | |
|---|---|---|
| IA | 39.5% | |
| Market (SPY) | 22.7% | 38.2% |
| Sector (XLI) | 20.9% | 46.2% |
Fundamental Drivers
The 174.8% change in IA stock from 7/31/2023 to 8/19/2026 was primarily driven by a 232.0% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 7312023 | 8192026 | Change |
|---|---|---|---|
| Stock Price ($) | 7.89 | 21.68 | 174.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 28 | 93 | 232.0% |
| Net Income Margin (%) | 17.6% | 20.5% | 16.6% |
| P/E Multiple | 27.8 | 20.3 | -26.9% |
| Shares Outstanding (Mil) | 17 | 18 | -3.0% |
| Cumulative Contribution | 174.8% |
Market Drivers
7/31/2023 to 8/19/2026| Return | Correlation | |
|---|---|---|
| IA | 174.8% | |
| Market (SPY) | 73.9% | 28.8% |
| Sector (XLI) | 71.6% | 35.1% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| IA Return | 1% | 25% | 4% | 0% | 122% | 22% | 254% |
| Peers Return | 0% | -13% | 82% | 28% | 88% | 22% | 366% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 12% | 105% |
Monthly Win Rates [3] | |||||||
| IA Win Rate | 25% | 58% | 58% | 42% | 58% | 62% | |
| Peers Win Rate | 42% | 50% | 71% | 50% | 62% | 64% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| IA Max Drawdown | -24% | -40% | -31% | -42% | -58% | -49% | |
| Peers Max Drawdown | -36% | -44% | -22% | -25% | -23% | -41% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: FLY, ATRO, LYNX, SPCX, GE.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 8/19/2026 (YTD)
How Low Can It Go
| Event | IA | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -34.8% | -18.8% |
| % Gain to Breakeven | 53.4% | 23.1% |
| Time to Breakeven | 37 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -13.7% | -9.5% |
| % Gain to Breakeven | 15.8% | 10.5% |
| Time to Breakeven | 55 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -28.2% | -6.7% |
| % Gain to Breakeven | 39.2% | 7.1% |
| Time to Breakeven | 246 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -11.1% | -24.5% |
| % Gain to Breakeven | 12.5% | 32.4% |
| Time to Breakeven | 4 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -57.6% | -33.7% |
| % Gain to Breakeven | 135.9% | 50.9% |
| Time to Breakeven | 141 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -17.1% | -19.2% |
| % Gain to Breakeven | 20.7% | 23.8% |
| Time to Breakeven | 68 days | 105 days |
In The Past
Innovative Solutions and Support's stock fell -34.8% during the 2025 US Tariff Shock. Such a loss loss requires a 53.4% gain to breakeven.
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Asset Allocation
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| Event | IA | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -34.8% | -18.8% |
| % Gain to Breakeven | 53.4% | 23.1% |
| Time to Breakeven | 37 days | 79 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -28.2% | -6.7% |
| % Gain to Breakeven | 39.2% | 7.1% |
| Time to Breakeven | 246 days | 31 days |
| 2020 COVID-19 Crash | ||
| % Loss | -57.6% | -33.7% |
| % Gain to Breakeven | 135.9% | 50.9% |
| Time to Breakeven | 141 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -23.4% | -12.2% |
| % Gain to Breakeven | 30.6% | 13.9% |
| Time to Breakeven | 178 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -58.4% | -6.8% |
| % Gain to Breakeven | 140.6% | 7.3% |
| Time to Breakeven | 1323 days | 15 days |
| 2013 Taper Tantrum | ||
| % Loss | -23.6% | -0.2% |
| % Gain to Breakeven | 31.0% | 0.2% |
| Time to Breakeven | 7 days | 1 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -24.3% | -17.9% |
| % Gain to Breakeven | 32.1% | 21.8% |
| Time to Breakeven | 433 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -31.5% | -15.4% |
| % Gain to Breakeven | 46.0% | 18.2% |
| Time to Breakeven | 9 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -68.3% | -53.4% |
| % Gain to Breakeven | 215.3% | 114.4% |
| Time to Breakeven | 1458 days | 1085 days |
| Summer 2007 Credit Crunch | ||
| % Loss | -32.7% | -8.6% |
| % Gain to Breakeven | 48.5% | 9.5% |
| Time to Breakeven | 5332 days | 47 days |
In The Past
Innovative Solutions and Support's stock fell -34.8% during the 2025 US Tariff Shock. Such a loss loss requires a 53.4% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Innovative Solutions and Support (IA)
Innovative Solutions and Support, Inc. (IA) is an aerospace systems integrator specializing in the design, development, manufacturing, and servicing of advanced avionics. The company focuses on providing critical flight guidance, autothrottle, and cockpit display systems that enhance the safety and efficiency of various aircraft.
IA's core product offerings include sophisticated flat panel display systems designed to modernize legacy aircraft cockpits by replicating and replacing existing displays, while also serving as security monitors and tactical workstations. They also develop flight management systems, integrated standby units that combine essential flight data into a single instrument, and digital air data computers for precise air parameter calculations. A key product is ThrustSense, a full-regime autothrottle, alongside integrated global navigation systems and various specialized displays for altitude, airspeed, engine, and fuel information.
The company serves a broad customer base globally, including commercial air transport carriers, corporate and general aviation companies, and original equipment manufacturers (OEMs). IA also has a strong presence in the defense and government sectors, supplying its solutions to the Department of Defense and its contractors, foreign militaries, other government agencies, and aircraft operators and modification centers.
AI Analysis | Feedback
Here are 1-3 brief analogies for Innovative Solutions and Support (IA):
- They're like Garmin, but for the advanced digital cockpits and flight systems of commercial airliners and military aircraft.
- Imagine them as a specialized Bosch or Continental for the aerospace industry, providing critical flight guidance, autothrottle, and display systems for aircraft.
AI Analysis | Feedback
- Flight Guidance Systems: Designs and manufactures systems that assist aircraft in following a predetermined flight path.
- Autothrottle Systems: Provides automated systems, such as ThrustSense, that control engine thrust during flight.
- Cockpit Display Systems: Develops various display units for aircraft cockpits, including flat panel displays, integrated standby units, and dedicated altitude, airspeed, engine, and fuel displays.
- Flight Management Systems (FMS): Offers systems that complement cockpit display upgrades for commercial aircraft, aiding in navigation and flight planning.
- Air Data Computers: Provides digital air data computers that calculate essential air data parameters like altitude, airspeed, and angle of attack.
- Integrated Global Navigation Systems: Offers systems for accurate positioning and navigation of aircraft.
- Utility Management Systems: Provides systems for monitoring and controlling various utility functions within an aircraft.
AI Analysis | Feedback
Innovative Solutions and Support (IA) sells primarily to other companies and organizations. Its major customer types include:
- Commercial air transport carriers
- Corporate/general aviation companies
- The Department of Defense and its commercial contractors
- Aircraft operators
- Aircraft modification centers
- Government agencies
- Foreign militaries
- Original equipment manufacturers (OEMs)
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AI Analysis | Feedback
Shahram Askarpour, Chief Executive Officer
Dr. Shahram Askarpour has served as the Chief Executive Officer of Innovative Solutions and Support, Inc. since January 2022, following the passing of the company's founder. He joined the company in 2003 as Vice President of Engineering and was promoted to President in March 2012. With over 40 years of aerospace industry experience, Dr. Askarpour has held increasingly responsible technical and managerial positions. Prior to joining Innovative Solutions and Support, he was employed by Smiths Aerospace (a division of Smiths Group PLC), Instrumentation Technology, and Marconi Avionics. He holds a number of key patents in the aviation field. Dr. Askarpour earned an undergraduate degree in Electrical Engineering from Middlesex University in the United Kingdom, a postgraduate Certificate in Systems Engineering, and a PhD in Automatic Control from Brunel University London. He also completed management courses at Carnegie Mellon University and finance courses at the Wharton School.
Jeffrey DiGiovanni, Chief Financial Officer
Jeffrey DiGiovanni was appointed Chief Financial Officer of Innovative Solutions and Support, Inc., effective April 8, 2024. He brings extensive public company CFO experience, including expertise in SEC filings, financial reporting, acquisitions, and capital markets interaction. Before joining the company, Mr. DiGiovanni served as Senior Vice President and Chief Financial Officer of StoneMor Inc. from September 2019 to May 2023, and as its Chief Accounting Officer from September 2018 to September 2019. From January 2012 to September 2018, he was a Managing Director at Pine Hill Group, an accounting and transaction advisory firm, where he provided services such as readiness for initial public offerings, financial reporting, and technical accounting assistance for complex transactions. Mr. DiGiovanni is a Certified Public Accountant and holds a B.S. in Accounting and an M.S. in Financial Services from Saint Joseph's University.
AI Analysis | Feedback
The key risks for Innovative Solutions and Support (IA) are primarily its lack of scale and intense competition, reliance on a few key contracts, and the expiration of patents.
Lack of Scale and Intense Competition
Innovative Solutions and Support (IA) operates in the aerospace and defense markets, where it faces significant competition from much larger and more diversified companies such as Honeywell Aerospace, Collins Aerospace, GE Aerospace, Thales Defense & Security, Inc., Elbit Systems, and Garmin Ltd.. This competitive landscape includes vertically integrated prime contractors and other suppliers of similar products and services. The company's smaller size limits its bargaining power with both suppliers and customers. Innovative Solutions and Support's revenue growth of 0.79% in the first quarter of 2026 was notably lower than its competitors' average revenue growth of 12.42% in the same period. Its growth is primarily concentrated in the niche market of cockpit retrofits for older aircraft. A significant risk is that larger competitors could choose to enter this specialized market, further intensifying competition. The company is also exposed to the cyclical nature of air travel and OEM production schedules.
Reliance on Key Contracts and Execution Risk
The business is heavily dependent on a limited number of key contracts, which can result in inconsistent and less predictable revenue streams. Although the company has seen a sustained increase in its backlog, management has indicated that fiscal year 2026 revenue will be largely flat and driven by timing. A key risk to future revenue and margin is the execution of these programs, which includes factors like third-party timing, integration challenges, and the concentration in a few defense and OEM programs.
Patent Expiration
Innovative Solutions and Support holds a portfolio of patents that provide protection for its intellectual property and innovations. However, some of these patents are scheduled to mature in 2026-2027. The expiration of these patents could expose the company to increased competition as proprietary technologies become more accessible.
AI Analysis | Feedback
AI Analysis | Feedback
Addressable Markets for Innovative Solutions and Support (IA) Main Products or Services:
- Flight Guidance Systems and Flight Management Systems: The global flight management and guidance system market was valued at USD 29.60 billion in 2025 and is projected to grow to USD 33.30 billion in 2026, with a forecast to reach USD 77.40 billion by 2034. Europe held the largest share of this market in 2025. The global flight management system market alone was valued at USD 4.21 billion in 2025 and is projected to grow from USD 4.53 billion in 2026 to USD 8.20 billion by 2034. North America is a leading market for flight management systems.
- Autothrottle Systems (ThrustSense): The global autopilot system market, which includes autothrottle systems, was valued at USD 7.80 billion in 2025. It is predicted to reach USD 8.46 billion in 2026 and USD 16.12 billion by 2034. North America held 36.6% of the global market share in 2025. The global aircraft autopilot system market size was valued at USD 5.82 billion in 2025 and is estimated to grow from USD 6.17 billion in 2026 to reach USD 8.25 billion by 2031. North America commanded 42.90% of the aircraft autopilot system market in 2025.
- Cockpit Display Systems (including Flat Panel Display Systems, Integrated Standby Units, Altitude Displays, Airspeed Displays, Engine and Fuel Displays): The global cockpit display market was valued at over USD 9 billion in 2023 and is estimated to reach USD 15.5 billion by 2032. The global aircraft cockpit display system market size was valued at USD 2.77 billion in 2025 and is projected to grow from USD 2.95 billion in 2026 to USD 4.88 billion by 2034. North America leads the Aircraft Cockpit Display System market. The avionics display market grew from USD 1.51 billion in 2025 to USD 1.60 billion in 2026, with a forecast to reach USD 2.35 billion by 2032. The global primary flight display market size was valued at USD 976.7 million in 2025 and is projected to grow from USD 1,017.0 million in 2026 to USD 1,573.4 million by 2034. North America dominated the primary flight display market with a 34.18% market share in 2025.
- Digital Air Data Computers: The global air data systems market size reached USD 896.4 million in 2025 and is expected to reach USD 1,378.8 million by 2034. Another estimate places the global Air Data System market size at USD 880 million in 2024, projected to reach approximately USD 1.44 billion by 2033.
- Integrated Global Navigation Systems: The global Flight Navigation System Market was valued at USD 23.42 billion in 2025 and is projected to reach USD 37.36 billion by 2032.
- Utility Management Systems: null
- Aerospace Aftermarket (for services and retrofits): The global aerospace aftermarket market is expected to grow from USD 61.74 billion in 2026 to USD 113.15 billion by 2035. The global aircraft aftermarket parts market size was valued at USD 48.71 billion in 2024 and is projected to grow from USD 54.40 billion in 2025 to USD 93.52 billion by 2032.
AI Analysis | Feedback
Innovative Solutions and Support (IA) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market expansions:
- Expansion into the eVTOL Market with Liberty Flight Deck: The company has secured its first OEM contract for the Liberty Flight Deck with an eVTOL (electric vertical takeoff and landing) developer, with initial production anticipated in late 2027 and broader production in 2028. This marks a significant entry into an emerging aviation market.
- Strategic Acquisitions and Diversification: The acquisition of Aydin Displays enhances IA's capabilities in rugged display technologies and broadens its market exposure to defense, naval, ground, industrial, and medical applications. Other recent acquisitions, such as product lines from Honeywell and the STEC autopilot line from Moog, are also expected to contribute to growth.
- Continued Organic Growth in Commercial Aftermarket and Business Aviation: Innovative Solutions and Support has demonstrated strong organic growth within its commercial aftermarket and business aviation segments. This sustained momentum in existing core markets is a key driver.
- Introduction and Growth of New Product Lines, such as UMS Version 2: The production ramp-up of recently launched products, including the UMS (Utility Management System) Version 2, is contributing to service revenue growth.
- Innovation in Next-Generation Avionics and Autonomous Flight Solutions: The company is strategically positioned to pursue growth opportunities through its expertise in next-generation navigation systems, advanced flight deck and special mission displays, precision air data instrumentation, autothrottles, flight control computers, mission computers, and software-based situational awareness solutions supporting autonomous flight.
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Share Repurchases
- Innovative Solutions and Support, Inc. did not repurchase shares of its common stock during the three and nine months ended June 30, 2026.
Share Issuance
- As of July 31, 2026, there were 17,899,173 common shares outstanding.
- As of October 13, 2025, the company had 17,636,625 common shares outstanding, with 1,375,682 shares available for awards under its 2019 stock-based incentive plan.
- The company plans to include an additional 1,950,000 authorized shares available for issuance.
Outbound Investments
- In 2026, Innovative Solutions and Support completed three avionics-related acquisitions totaling $33.5 million in cash, which included Honeywell's general aviation autopilot assets for $22.0 million, Honeywell generator-related assets for $8.0 million, and the S-TEC 3100 autopilot line from Moog for $3.5 million.
- The company acquired Aydin Displays in July 2026, adding rugged-display technologies, engineering talent, and a leased manufacturing facility, marking its first acquisition of an operating business.
- The backlog at September 30, 2024, included $74.3 million of acquired backlog resulting from a September 27, 2024 acquisition.
Capital Expenditures
- Capital expenditures for the first nine months of 2026 were $3.2 million, compared to $5.5 million in the same period of 2025.
- Capital expenditures during the first fiscal quarter of 2026 were $1.1 million, an increase from $0.3 million in the prior-year period.
- The company continues to invest in capital equipment to support engineering development efforts and operations, including elevated capital expenditures for the Exton facility expansion.
Peer Outperformance in Aerospace & Defense
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| IA | Innovative Solutions and Support | 49.1% | 20.3x | 65.6% | 165.4% | 210.2% | — |
| RKLB | Rocket Lab | 49.3% | -288.6x | 85.3% | 1194.2% | 624.4% | +414pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Construction & Engineering | 31 | 31.4% | 131.6% | 210.1% | CDNL 3233% · STRL 2335% · FIX 2227% |
| Marine Transportation | 4 | 71.1% | 64.1% | 165.0% | MATX 218% · SFL 167% · KEX 163% |
| Construction Machinery & Heavy Transportation Equipment | 13 | 11.6% | 58.6% | 122.8% | CAT 334% · ALSN 260% · WAB 251% |
| Aerospace & Defense ← | 55 | 17.3% | 84.8% | 88.8% | DFNS 2609% · ATI 1117% · FTAI 999% |
| Passenger Ground Transportation | 3 | -9.7% | 56.6% | 65.8% | UBER 95% · CAR 66% · LYFT -62% |
| Industrial Machinery & Supplies & Components | 71 | 11.2% | 56.3% | 50.3% | CRS 1580% · PSIX 869% · GHM 780% |
| Trading Companies & Distributors | 18 | 5.9% | 36.1% | 47.9% | DXPE 545% · AIT 314% · URI 251% |
| Rail Transportation | 7 | 37.9% | 71.4% | 46.4% | FSTR 114% · CSX 61% · UNP 51% |
| Cargo Ground Transportation | 16 | 42.5% | 11.5% | 45.9% | XPO 283% · R 278% · CVLG 218% |
| Diversified Support Services | 34 | 12.0% | 37.8% | 40.3% | LIME 4287% · TH 391% · WLFC 363% |
| Electrical Components & Equipment | 40 | 27.8% | 40.6% | 35.9% | POWL 2456% · BE 933% · ELVA 917% |
| Building Products | 33 | -4.5% | 21.5% | 33.4% | GFF 438% · LMB 435% · PPIH 281% |
| Industrial Conglomerates | 17 | 24.1% | 24.2% | 11.1% | RCMT 788% · TTI 192% · CSW 155% |
| Office Services & Supplies | 10 | 17.0% | 28.8% | 5.6% | TILE 200% · PBI 166% · EBF 59% |
| Environmental & Facilities Services | 28 | -6.7% | 15.9% | 3.2% | CECO 935% · ADUR 630% · NVRI 306% |
| Research & Consulting Services | 13 | -5.4% | -17.8% | -2.8% | HURN 219% · CRAI 96% · GRNQ 71% |
| Agricultural & Farm Machinery | 17 | -6.9% | -15.5% | -18.0% | BLBD 202% · DE 76% · GENC 67% |
| Passenger Airlines | 11 | 9.1% | -5.7% | -24.1% | LTM 2416% · UAL 163% · SKYW 155% |
| Data Processing & Outsourced Services | 6 | -30.8% | -9.6% | -25.2% | EXLS 54% · BR 10% · G -25% |
| Human Resource & Employment Services | 21 | 12.3% | -20.6% | -34.5% | BBSI 87% · ADP 46% · KFY 38% |
| Air Freight & Logistics | 12 | -13.1% | -24.2% | -35.9% | CHRW 84% · FDX 70% · EXPD 61% |
| Security & Alarm Services | 10 | -28.4% | -16.1% | -44.8% | CIX 118% · MG 101% · BCO 50% |
| Airport Services | 3 | -67.1% | -67.5% | -57.1% | JOBY -22% · ASLE -57% · UP -100% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 53.48 |
| Mkt Cap | 4.1 |
| Rev LTM | 942 |
| Op Inc LTM | 25 |
| FCF LTM | 14 |
| FCF 3Y Avg | 27 |
| CFO LTM | 103 |
| CFO 3Y Avg | 48 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 21.0% |
| Rev Chg 3Y Avg | 26.2% |
| Rev Chg Q | 24.1% |
| QoQ Delta Rev Chg LTM | 5.5% |
| Op Inc Chg LTM | 38.2% |
| Op Inc Chg 3Y Avg | 62.5% |
| Op Mgn LTM | 13.4% |
| Op Mgn 3Y Avg | 17.5% |
| QoQ Delta Op Mgn LTM | 2.6% |
| CFO/Rev LTM | 18.5% |
| CFO/Rev 3Y Avg | 16.1% |
| FCF/Rev LTM | 6.4% |
| FCF/Rev 3Y Avg | 11.7% |
Price Behavior
| Market Price | $21.68 | |
| Market Cap ($ Bil) | 0.4 | |
| First Trading Date | 08/04/2000 | |
| Distance from 52W High | -29.1% | |
| 50 Days | 200 Days | |
| DMA Price | $18.94 | $18.91 |
| DMA Trend | up | up |
| Distance from DMA | 14.5% | 14.7% |
| 3M | 1YR | |
| Volatility | 64.0% | 77.3% |
| Downside Capture | 111.72 | 246.85 |
| Upside Capture | 235.60 | 252.29 |
| Correlation (SPY) | 43.3% | 40.5% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.27 | 1.54 | 1.57 | 2.29 | 2.40 | 1.23 |
| Up Beta | 0.43 | 1.07 | 1.26 | 1.91 | 3.12 | 1.06 |
| Down Beta | 2.06 | 2.03 | 1.95 | 1.83 | 1.94 | 1.20 |
| Up Capture | 141% | 185% | 89% | 323% | 388% | 272% |
| Bmk +ve Days | 11 | 22 | 35 | 67 | 138 | 427 |
| Stock +ve Days | 12 | 22 | 31 | 62 | 123 | 358 |
| Down Capture | 115% | 122% | 187% | 205% | 162% | 106% |
| Bmk -ve Days | 11 | 21 | 28 | 59 | 114 | 326 |
| Stock -ve Days | 10 | 21 | 32 | 63 | 124 | 371 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with IA | |
|---|---|---|---|---|
| IA | 52.8% | 77.6% | 0.86 | - |
| Sector ETF (XLI) | 21.8% | 17.1% | 0.99 | 47.9% |
| Equity (SPY) | 20.7% | 12.8% | 1.19 | 40.2% |
| Gold (GLD) | 35.0% | 28.8% | 1.04 | 12.3% |
| Commodities (DBC) | 41.4% | 20.2% | 1.60 | -17.1% |
| Real Estate (VNQ) | 15.3% | 13.9% | 0.78 | 18.2% |
| Bitcoin (BTCUSD) | -44.7% | 42.7% | -1.27 | 23.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with IA | |
|---|---|---|---|---|
| IA | 24.7% | 59.8% | 0.60 | - |
| Sector ETF (XLI) | 13.2% | 17.6% | 0.58 | 28.2% |
| Equity (SPY) | 13.1% | 17.2% | 0.59 | 24.0% |
| Gold (GLD) | 20.4% | 18.6% | 0.89 | 8.6% |
| Commodities (DBC) | 9.8% | 19.6% | 0.39 | -1.2% |
| Real Estate (VNQ) | 2.4% | 18.9% | 0.03 | 17.7% |
| Bitcoin (BTCUSD) | 7.2% | 52.6% | 0.32 | 11.6% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with IA | |
|---|---|---|---|---|
| IA | 24.3% | 57.4% | 0.61 | - |
| Sector ETF (XLI) | 14.0% | 20.0% | 0.61 | 26.3% |
| Equity (SPY) | 15.2% | 17.9% | 0.72 | 23.6% |
| Gold (GLD) | 12.5% | 16.2% | 0.63 | 7.8% |
| Commodities (DBC) | 7.9% | 18.1% | 0.35 | 4.6% |
| Real Estate (VNQ) | 4.9% | 20.7% | 0.20 | 20.2% |
| Bitcoin (BTCUSD) | 60.0% | 66.0% | 1.00 | 10.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Earnings Returns History
Updated 8/20/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/13/2026 | 13.1% | 7.7% | |
| 5/14/2026 | -15.4% | -22.7% | -10.2% |
| 2/12/2026 | 9.4% | 27.3% | 46.0% |
| 12/18/2025 | 30.8% | 77.6% | 94.8% |
| 8/14/2025 | -31.5% | -33.0% | -43.5% |
| 5/14/2025 | 33.2% | 38.1% | 72.0% |
| 2/13/2025 | -18.5% | -25.2% | -34.9% |
| 12/19/2024 | 8.7% | 16.7% | 49.9% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 13 | 14 |
| # Negative | 11 | 11 | 9 |
| Median Positive | 4.4% | 7.7% | 13.1% |
| Median Negative | -7.3% | -5.6% | -10.2% |
| Max Positive | 33.2% | 77.6% | 94.8% |
| Max Negative | -31.5% | -33.0% | -43.5% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/13/2026 | 13.1% | 7.7% | |
| 5/14/2026 | -15.4% | -22.7% | -10.2% |
| 2/12/2026 | 9.4% | 27.3% | 46.0% |
| 12/18/2025 | 30.8% | 77.6% | 94.8% |
| 8/14/2025 | -31.5% | -33.0% | -43.5% |
| 5/14/2025 | 33.2% | 38.1% | 72.0% |
| 2/13/2025 | -18.5% | -25.2% | -34.9% |
| 12/19/2024 | 8.7% | 16.7% | 49.9% |
| 8/12/2024 | 0.5% | 5.7% | 2.6% |
| 5/14/2024 | 3.0% | 5.4% | 17.8% |
| 2/14/2024 | -0.1% | -0.4% | -6.6% |
| 12/20/2023 | 3.1% | 5.9% | 1.2% |
| 8/11/2023 | -1.2% | 0.7% | -8.0% |
| 5/8/2023 | 3.4% | 10.7% | 2.5% |
| 12/16/2022 | -0.7% | -0.7% | 1.2% |
| 8/10/2022 | 13.0% | -2.8% | 39.1% |
| 5/11/2022 | 4.4% | 20.5% | 5.3% |
| 2/10/2022 | -1.3% | 6.6% | 13.0% |
| 12/8/2021 | -14.3% | -11.4% | -7.6% |
| 8/12/2021 | 1.9% | -8.5% | -0.1% |
| 5/13/2021 | 4.4% | -2.5% | 2.7% |
| 2/11/2021 | -9.0% | -5.6% | -14.5% |
| 12/9/2020 | -7.3% | 2.3% | -14.8% |
| 8/10/2020 | -1.7% | -3.1% | 13.2% |
| SUMMARY STATS | |||
| # Positive | 13 | 13 | 14 |
| # Negative | 11 | 11 | 9 |
| Median Positive | 4.4% | 7.7% | 13.1% |
| Median Negative | -7.3% | -5.6% | -10.2% |
| Max Positive | 33.2% | 77.6% | 94.8% |
| Max Negative | -31.5% | -33.0% | -43.5% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/13/2026 | 10-Q |
| 03/31/2026 | 05/15/2026 | 10-Q |
| 12/31/2025 | 02/13/2026 | 10-Q |
| 09/30/2025 | 12/23/2025 | 10-K |
| 06/30/2025 | 08/14/2025 | 10-Q |
| 03/31/2025 | 05/15/2025 | 10-Q |
| 12/31/2024 | 02/14/2025 | 10-Q |
| 09/30/2024 | 12/30/2024 | 10-K |
| 06/30/2024 | 08/14/2024 | 10-Q |
| 03/31/2024 | 05/14/2024 | 10-Q |
| 12/31/2023 | 02/14/2024 | 10-Q |
| 09/30/2023 | 01/12/2024 | 10-K |
| 06/30/2023 | 08/11/2023 | 10-Q |
| 03/31/2023 | 05/08/2023 | 10-Q |
| 12/31/2022 | 02/14/2023 | 10-Q |
| 09/30/2022 | 12/16/2022 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/13/2026 | 10-Q |
| 03/31/2026 | 05/15/2026 | 10-Q |
| 12/31/2025 | 02/13/2026 | 10-Q |
| 09/30/2025 | 12/23/2025 | 10-K |
| 06/30/2025 | 08/14/2025 | 10-Q |
| 03/31/2025 | 05/15/2025 | 10-Q |
| 12/31/2024 | 02/14/2025 | 10-Q |
| 09/30/2024 | 12/30/2024 | 10-K |
| 06/30/2024 | 08/14/2024 | 10-Q |
| 03/31/2024 | 05/14/2024 | 10-Q |
| 12/31/2023 | 02/14/2024 | 10-Q |
| 09/30/2023 | 01/12/2024 | 10-K |
| 06/30/2023 | 08/11/2023 | 10-Q |
| 03/31/2023 | 05/08/2023 | 10-Q |
| 12/31/2022 | 02/14/2023 | 10-Q |
| 09/30/2022 | 12/16/2022 | 10-K |
| 06/30/2022 | 08/12/2022 | 10-Q |
| 03/31/2022 | 05/13/2022 | 10-Q |
| 12/31/2021 | 02/11/2022 | 10-Q |
| 09/30/2021 | 12/22/2021 | 10-K |
| 06/30/2021 | 08/13/2021 | 10-Q |
| 03/31/2021 | 05/17/2021 | 10-Q |
| 12/31/2020 | 02/12/2021 | 10-Q |
| 09/30/2020 | 12/22/2020 | 10-K |
| 06/30/2020 | 08/10/2020 | 10-Q |
| 03/31/2020 | 05/15/2020 | 10-Q |
| 12/31/2019 | 02/07/2020 | 10-Q |
| 09/30/2019 | 12/23/2019 | 10-K |
Recent Forward Guidance
Updated 8/19/2026Latest: Q3 2026 Earnings Reported 8/13/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Annual Revenue | 250.00 Mil | 0 | Affirmed | Guidance: 250.00 Mil for 2026 | |||
Prior: Q2 2026 Earnings Reported 5/14/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue | 250.00 Mil | 0 | Affirmed | Guidance: 250.00 Mil for 2026 | |||
| 2026 Acquisition Revenue Contribution | 10.00 Mil | ||||||
| 2026 Acquisition Gross Margin | 50.0% | ||||||
Q1 2026 Earnings Reported 2/12/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue | 250.00 Mil | ||||||
Q4 2025 Earnings Reported 12/18/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2029 Revenue | 250.00 Mil | ||||||
| 2029 Adjusted EBITDA Margin | 25.0% | 27.5% | 30.0% | ||||
Industry Resources
| Industrials Resources |
| IndustryWeek |
| Manufacturing.net |
| Aviation Week |
| Aerospace & Defense Resources |
| Defense News |
| FlightGlobal |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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