Innovative Solutions and Support Reports Strong Q1 Earnings

Aerospace firm cites organic growth, improved profitability, and cash generation in first quarter

Published on Feb. 12, 2026

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Innovative Solutions and Support (NASDAQ:ISSC) reported a strong start to fiscal 2026, citing broad-based organic growth in the first quarter driven by commercial aftermarket demand and higher services activity, alongside improved profitability and cash generation. The company saw a 37% year-over-year increase in revenue, supported by growth in both product sales and service revenue.

Why it matters

Innovative Solutions and Support is a key provider of technology solutions and mission support services to U.S. federal government agencies, particularly in the defense, intelligence, and national security sectors. The company's strong Q1 performance signals continued demand for its integrated program management, systems engineering, and IT infrastructure support offerings, which are critical for maintaining operational readiness and secure environments.

The details

Management reported that first-quarter revenue increased 37% year over year, with product sales of $13.6 million (up from $10.0 million) and service revenue of $8.2 million (up from $6.0 million). Profitability also improved sharply, with gross profit rising to $11.9 million (up from $6.6 million) and gross margin expanding to 54.5% (from 41.4%). The company attributed the improvements to higher revenue and a more favorable mix, particularly within the commercial aftermarket business.

  • Innovative Solutions and Support reported its Q1 2026 earnings on February 12, 2026.

The players

Innovative Solutions and Support, Inc.

A provider of technology solutions and mission support services to U.S. federal government agencies, with a focus on defense, intelligence, and national security programs.

Jeff DiGiovanni

Chief Financial Officer of Innovative Solutions and Support.

Shahram Askarpour

President and Chief Executive Officer of Innovative Solutions and Support.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The company expects to begin insourcing F-16 product line subassemblies in late 2026, which should contribute to improved and more consistent margins for those products.

The takeaway

Innovative Solutions and Support's strong Q1 performance, driven by increased commercial aftermarket demand and service activity, highlights the company's ability to deliver integrated technology solutions and mission support services that are critical for U.S. government agencies in the defense, intelligence, and national security sectors.