AstroNova, Inc. reported third‑quarter fiscal 2026 results that included $39.169 million in revenue, a 8.6% sequential increase from $36.1 million in Q2 FY26 and a 3.1% year‑over‑year decline from $40.4 million in Q3 FY25. GAAP earnings per share rose to $0.05 and non‑GAAP EPS reached $0.20, both beating consensus estimates of $0.02 and $0.15 respectively.
Revenue growth was driven by a 12% rise in the Product Identification segment, which benefited from a rebound in recurring supplies and service contracts. The Aerospace segment, while still a key contributor to sequential growth, posted a 4% year‑over‑year decline due to atypical orders in the prior year, offsetting the stronger performance of Product Identification.
Operating income climbed to $1.30 million, and adjusted EBITDA reached $4.20 million, reflecting a 4.5% expansion in operating margin and a 5.2% increase in adjusted EBITDA margin. The margin gains stem from disciplined cost control, a favorable product mix shift toward higher‑margin services, and improved operational leverage as revenue scales.
Management reiterated full‑year revenue guidance of $149 million to $154 million and maintained an adjusted EBITDA margin outlook of 7.5% to 8.5%. CEO Jorik Ittmann said the company is “re‑igniting sales in Product ID and accelerating the value of the Aerospace segment,” while CFO Thomas DeByle highlighted a $3.4 million cash generation from operations, up from $2.8 million a year earlier.
The announcement triggered a pre‑market surge of 14–21%, driven by investors’ focus on margin expansion, the EPS beat, and the sustained strength of the Aerospace segment. Analysts noted that the company’s ability to maintain profitability amid a year‑over‑year revenue decline signals robust cost discipline and a resilient business model.
AstroNova continues to integrate the MTEX acquisition, manage debt reduction, and execute cost‑reduction initiatives across its organization. These efforts support the company’s long‑term strategy of delivering high‑margin services while maintaining a solid cash position.
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