AAR Corp. (AIR) Releases Q2 2026 Earnings: Revenue Up Year-over-Year but EPS Misses Estimates

AAR Corp. (AIR) — Q2 2026 results

AAR Corp. reported total revenue of $795.3 million, up 15.92% year-over-year, with gross profit of $156.9 million, a 22.01% increase compared with the prior year.

Total revenue: $795.3 million (up 15.92% year-over-year).

Gross profit: $156.9 million (up 22.01% year-over-year).

Cost of sales: $638.4 million (up 14.51% year-over-year).

Profitability and per-share results

Operating profit came in at $67.0 million, while net income attributable to common shareholders was $34.6 million. Diluted earnings per share was $0.90, reflecting a notable year-over-year decline.

Operating profit: $67.0 million (down 1,695.24% year-over-year).

Net income: $34.6 million (down 213.07% year-over-year).

Diluted EPS: $0.90 (down 203.45% year-over-year).

Estimates and relative performance

The quarter beat revenue expectations but missed on earnings per share. Revenue exceeded the consensus estimate of $768.7 million by roughly 3.5%, while diluted EPS missed the estimate of $1.05 by about 14.2%.

Consensus revenue estimate: $768.7 million.

Consensus EPS estimate: $1.05.

Cash flow and balance sheet

Operating cash flow strengthened, and the company maintained a solid liquidity position at quarter end.

Cash from operating activities: $13.6 million (up 300.0% year-over-year).

Purchases of property, plant and equipment (capex): $7.4 million (down 10.84% year-over-year).

Cash and cash equivalents: $75.6 million (up 22.53% year-over-year).

Total liabilities: $1.64 billion (down 1.75% year-over-year).

Note: This financials data is sourced from a third-party provider and has not been independently verified by Quiver.

AAR Corp. Insider Trading Activity

AAR Corp. insiders have traded $AIR stock on the open market 16 times in the past 6 months. Of those trades, 0 have been purchases and 16 have been sales.

Here’s a breakdown of recent trading of $AIR stock by insiders over the last 6 months:

JOHN MCCLAIN III HOLMES (Chairman, President & CEO) has made 0 purchases and 5 sales selling 105,013 shares for an estimated $8,324,250.
SEAN M. GILLEN (Senior VP-CFO) has made 0 purchases and 4 sales selling 18,000 shares for an estimated $1,392,732.
ERIC PACHAPA (VP-CAO & Controller) has made 0 purchases and 3 sales selling 10,748 shares for an estimated $814,724.
JENNIFER L VOGEL sold 7,000 shares for an estimated $546,509
JESSICA A. GARASCIA (Senior VP, GC, CAO & Secretary) has made 0 purchases and 3 sales selling 3,631 shares for an estimated $279,870.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

AAR Corp. Hedge Fund Activity

We have seen 159 institutional investors add shares of AAR Corp. stock to their portfolio, and 131 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

WELLINGTON MANAGEMENT GROUP LLP added 878,188 shares (+144.3%) to their portfolio in Q3 2025, for an estimated $78,747,117
BROAD BAY CAPITAL MANAGEMENT, LP added 581,565 shares (+inf%) to their portfolio in Q3 2025, for an estimated $52,148,933
FULLER & THALER ASSET MANAGEMENT, INC. added 550,205 shares (+inf%) to their portfolio in Q3 2025, for an estimated $49,336,882
UBS GROUP AG added 427,906 shares (+709.2%) to their portfolio in Q3 2025, for an estimated $38,370,331
FRONTIER CAPITAL MANAGEMENT CO LLC added 379,388 shares (+inf%) to their portfolio in Q3 2025, for an estimated $34,019,721
WESTWOOD HOLDINGS GROUP INC removed 363,816 shares (-23.4%) from their portfolio in Q3 2025, for an estimated $32,623,380
FRANKLIN RESOURCES INC added 311,258 shares (+36.9%) to their portfolio in Q3 2025, for an estimated $27,910,504

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

AAR Corp. Analyst Ratings

Wall Street analysts have issued reports on $AIR in the last several months. We have seen 4 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Jefferies issued a "Buy" rating on 12/17/2025
RBC Capital issued a "Outperform" rating on 11/26/2025
Keybanc issued a "Overweight" rating on 09/29/2025
Truist Securities issued a "Buy" rating on 09/24/2025

To track analyst ratings and price targets for AAR Corp., check out Quiver Quantitative's $AIR forecast page.

AAR Corp. Price Targets

Multiple analysts have issued price targets for $AIR recently. We have seen 4 analysts offer price targets for $AIR in the last 6 months, with a median target of $91.5.

Here are some recent targets:

Sheila Kahyaoglu from Jefferies set a target price of $100.0 on 12/17/2025
Ken Herbert from RBC Capital set a target price of $90.0 on 11/26/2025
Michael Leshock from Keybanc set a target price of $93.0 on 09/29/2025
Michael Ciarmoli from Truist Securities set a target price of $90.0 on 09/24/2025