AAR CORP (NYSE:AIR) Surpasses Q2 Earnings and Revenue Estimates, Provides Strong Q3 Outlook

AAR CORP (NYSE:AIR), a prominent provider of aviation services, has reported financial results for its fiscal second quarter of 2026, delivering a performance that exceeded analyst expectations on both the top and bottom lines. The company's latest earnings release has been met with a positive reaction in after-hours trading, signaling investor approval of the results and the forward guidance provided.

Earnings and Revenue Beat

For the quarter ended November 30, 2025, AAR posted revenue of $795.3 million, representing a significant 15.9% increase compared to the same period last year. This figure comfortably surpassed the consensus analyst estimate of approximately $768.7 million.

On the profitability front, the company reported non-GAAP earnings per share (EPS) of $1.18. This result outpaced the average analyst estimate of $1.05 per share by a notable margin.

Key quarterly results versus estimates:

• Reported Revenue: $795.3 million
• Estimated Revenue: ~$768.7 million
• Reported Non-GAAP EPS: $1.18
• Estimated Non-GAAP EPS: $1.05

Strong Forward Guidance

Beyond the historical beat, management's outlook for the upcoming third quarter appears to be a primary driver of the positive market sentiment. The company provided revenue guidance with a midpoint of $820.6 million for Q3 FY2026. This forecast is approximately 3.9% above the current consensus analyst estimate of $801.4 million, suggesting management has confidence in continued momentum.

Market Reaction and Performance

The market's immediate response to the earnings report and guidance has been favorable. Following the announcement, AAR's stock saw an after-market increase of approximately 2.8%. This positive move builds upon a steady performance over recent weeks, with the stock up roughly 8.2% over the past month. The reaction indicates that investors view the earnings beat and strong forward outlook as validating the company's growth trajectory and operational execution.

Press Release Summary

The company's press release highlighted its role as a leading provider of aviation services to commercial and government operators, maintenance, repair, and overhaul (MRO) organizations, and original equipment manufacturers (OEMs). While the full details of operational highlights were not provided in the summary context, the core message centers on the strong financial results for the fiscal second quarter. The report underscores strength across what the company identifies as its key segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services.

Looking Ahead

Analyst estimates for the full fiscal year 2026 currently project sales of approximately $3.18 billion and earnings per share around $4.51. The company's own guidance for the next quarter, which exceeds the street's expectations, may lead to upward revisions in these full-year estimates as analysts incorporate the stronger outlook into their models.

For a detailed breakdown of historical earnings, future estimates, and analyst ratings, you can review the data on AAR's earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.