AAR (NYSE:AIR) Shares Gap Up on Strong Earnings

AAR Corp. (NYSE:AIR)’s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $89.46, but opened at $94.91. AAR shares last traded at $93.7050, with a volume of 698,438 shares traded.

The aerospace company reported $1.18 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.02 by $0.16. AAR had a return on equity of 12.40% and a net margin of 3.17%.The business had revenue of $795.30 million for the quarter, compared to the consensus estimate of $760.95 million. During the same quarter in the prior year, the business posted $0.90 earnings per share. The firm’s quarterly revenue was up 15.9% compared to the same quarter last year.

Key Headlines Impacting AAR

Here are the key news stories impacting AAR this week:

• Positive Sentiment: Q2 results topped Street expectations — AAR reported $1.18 EPS vs. $1.02 expected and revenue of $795.3M (beat estimates) with ~16% YoY revenue growth, signaling recovery in parts & services and supporting the rally. AAR reports second quarter fiscal year 2026 results
• Positive Sentiment: Company raised revenue guidance/targets for the quarter and FY26 and highlighted margin expansion from acquisitions — increased visibility on top-line momentum is supporting investor bullishness. AAR targets 17% full-year sales growth
• Positive Sentiment: Commercial deal wins: Thai Airways selected AAR’s Trax and Aerostrat for a digital MRO upgrade, and AAR began an exclusive distribution agreement with TRIUMPH — these contracts support recurring SaaS/services and aftermarket parts revenue. Thai Airways selects Trax and Aerostrat AAR commences exclusive distribution agreement with TRIUMPH
• Positive Sentiment: Analyst activity is supportive — Truist raised its price target to $99 with a Buy rating and other firms/institional interest have been constructive, adding upward pressure. Truist raises AIR price target
• Neutral Sentiment: Operational cash and liquidity improved year-over-year and the balance sheet metrics (current ratio ~2.9, debt/equity ~0.82) give flexibility for M&A, but these are medium-term positives rather than immediate catalysts.
• Negative Sentiment: Insider selling: CEO John McClain Holmes III sold 23,077 shares (~$1.94M) in early January and CAO Jessica Garascia sold 4,787 shares on Jan 8 — repeated insider sales can create short-term investor caution even though executives still hold large positions. SEC Form 4 — CEO sale SEC Form 4 — CAO sale

Analyst Upgrades and Downgrades

Several equities analysts have commented on AIR shares. Royal Bank Of Canada raised their target price on shares of AAR from $90.00 to $105.00 and gave the company an “outperform” rating in a report on Wednesday. Jefferies Financial Group assumed coverage on shares of AAR in a research report on Wednesday, December 17th. They set a “buy” rating and a $100.00 price target on the stock. Wall Street Zen upgraded shares of AAR from a “hold” rating to a “buy” rating in a research report on Saturday, January 3rd. Zacks Research cut AAR from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, October 29th. Finally, Truist Financial raised their target price on AAR from $90.00 to $99.00 and gave the company a “buy” rating in a report on Wednesday. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, AAR currently has a consensus rating of “Moderate Buy” and an average target price of $99.25.

Insider Buying and Selling at AAR

In other news, CAO Jessica A. Garascia sold 4,787 shares of the stock in a transaction on Thursday, January 8th. The stock was sold at an average price of $95.25, for a total value of $455,961.75. Following the completion of the transaction, the chief accounting officer directly owned 29,557 shares in the company, valued at approximately $2,815,304.25. This represents a 13.94% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO John Mcclain Holmes III sold 38,462 shares of the firm’s stock in a transaction on Wednesday, November 5th. The shares were sold at an average price of $83.50, for a total value of $3,211,577.00. Following the sale, the chief executive officer directly owned 260,141 shares in the company, valued at approximately $21,721,773.50. This trade represents a 12.88% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 66,326 shares of company stock valued at $5,608,776 over the last quarter. Company insiders own 3.60% of the company’s stock.

Institutional Trading of AAR

Hedge funds and other institutional investors have recently made changes to their positions in the company. Wellington Management Group LLP increased its stake in shares of AAR by 144.3% in the third quarter. Wellington Management Group LLP now owns 1,486,775 shares of the aerospace company’s stock valued at $133,319,000 after buying an additional 878,188 shares during the period. UBS Group AG increased its position in AAR by 709.2% in the 3rd quarter. UBS Group AG now owns 488,239 shares of the aerospace company’s stock valued at $43,780,000 after acquiring an additional 427,906 shares during the period. Franklin Resources Inc. increased its position in AAR by 36.9% in the 3rd quarter. Franklin Resources Inc. now owns 1,154,167 shares of the aerospace company’s stock valued at $107,752,000 after acquiring an additional 311,258 shares during the period. State Street Corp raised its stake in shares of AAR by 10.9% during the second quarter. State Street Corp now owns 1,917,821 shares of the aerospace company’s stock valued at $131,927,000 after acquiring an additional 188,406 shares during the last quarter. Finally, Principal Financial Group Inc. lifted its holdings in shares of AAR by 35.2% during the third quarter. Principal Financial Group Inc. now owns 640,707 shares of the aerospace company’s stock worth $57,452,000 after purchasing an additional 166,903 shares during the period. 90.74% of the stock is currently owned by institutional investors.

AAR Trading Up 3.9%

The company has a debt-to-equity ratio of 0.61, a current ratio of 2.84 and a quick ratio of 1.31. The company has a market cap of $3.71 billion, a price-to-earnings ratio of 37.22 and a beta of 1.24. The business’s fifty day moving average price is $83.26 and its 200 day moving average price is $79.34.

AAR Company Profile

AAR Corp. (NYSE: AIR) is a global provider of aviation products and services to commercial, government and defense customers. The company offers a comprehensive portfolio of maintenance, repair and overhaul (MRO) solutions, component repair and overhaul, and engineering services designed to support a wide variety of fixed-wing and rotary aircraft. Leveraging FAA and EASA certifications, AAR delivers turnkey maintenance programs and ad hoc repair services that enhance aircraft availability and reliability.

In its Aviation Supply Chain Services segment, AAR sources, stores and distributes parts for both commercial airlines and military operators.