Applied Aerospace & Defense cuts 2026 guidance, shares drop 13.25%
The aerospace supplier reported strong third-quarter revenue growth but cut its full-year outlook, triggering a sharp sell-off in New York trading.
The aerospace supplier reported strong third-quarter revenue growth but cut its full-year outlook, triggering a sharp sell-off in New York trading. Published 2026-11-12 by Falling Shares.
| By Falling Shares Intelligence, edited by Wung Thomas, Editor-in-Chief
Written by Falling Shares Intelligence, our automated newsroom, from the public sources listed below and live market data. Every figure is checked against that material before publication, but the story has not been reviewed by a human editor. Check the linked sources before relying on it, and report errors to info@fallingshares.com.
Applied Aerospace & Defense shares fell 13.25% on Thursday after the company lowered its 2026 revenue guidance, despite reporting a 48.6% jump in third-quarter sales. The decline left the stock at $9.30, 61.0% below its 52-week high.
Revenue growth masked by guidance cut
Applied Aerospace & Defense reported third-quarter revenue of $182.1 million, an increase of 48.6% from the prior year, according to a filing on Wednesday. The company also noted a rise in earnings, but investors focused on the downward revision to its full-year outlook. Shares had already dropped 5.6% in pre-market trading after the guidance update was released.
The company said in a Business Wire release that it reported its third-quarter 2026 financial results. While top-line growth remained strong, the reduced forecast for the remainder of the year prompted the sharp intraday decline. The stock closed at $9.30 on Thursday.
Stock underperforms peers and sector
The fall came on a day when the broader market rose. The S&P 500 gained 1.3% in the latest session, and the US Industrials sector (XLI) also advanced by 1.3%. Applied Aerospace & Defense’s 13.25% drop stood in stark contrast to these gains, highlighting the company-specific nature of the move.
By Falling Shares' measure, almost all of the move was company-specific, with the stock falling 15.8% on company factors after adjusting for market and sector movements. The stock has lost 50.5% of its value over the past three months and is currently 61.0% below its 52-week high of $24.24.
Profitability concerns persist
Falling Shares rates the stock Unstable, citing annualised volatility of 83.7% compared to 14.7% for the benchmark. There have been 34 sessions with moves of 5% or more in the past six months alone. The stock’s volatility is driven by a mix of strong revenue growth and weak profitability metrics.
The company reported a net margin of -30.2% even as revenue grew 47.4% year on year. Analysts have also revised their earnings estimates downward, with the consensus EPS for the current year cut 29.4% in the last 90 days. The stock’s market capitalisation stands at $1.60 billion.