Applied Aerospace & Defense cuts 2026 outlook, shares plunge 13%
The aerospace supplier reported strong third-quarter revenue growth but cut its full-year outlook, prompting a sharp sell-off despite a broader market rally.
The aerospace supplier reported strong third-quarter revenue growth but cut its full-year outlook, prompting a sharp sell-off despite a broader market rally. 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.
Shares in Applied Aerospace & Defense fell 13.25% on Wednesday after the company lowered its 2026 revenue guidance, according to MarketBeat. The drop came despite the company reporting a 48.6% increase in third-quarter revenue to $182.1 million. The stock erased gains made by the wider market, which saw the S&P 500 rise 1.3% in the same session.
Revenue growth fails to offset guidance cut
Applied Aerospace & Defense reported third-quarter revenue of $182.1 million, representing a 48.6% increase from the prior year, according to InvestorsHub. The company also noted that net margin stood at -30.2% while revenue grew 47.4% year on year, as flagged by Falling Shares risk signals.
However, the positive top-line results were overshadowed by the company's decision to reduce its full-year revenue forecast. MT Newswires reported that the guidance cut triggered an initial 5.6% pre-market drop before the shares extended their losses to close the session down 13.25%.
The company’s earnings estimate revisions have deteriorated significantly, with consensus EPS for the current year cut 29.4% over the past 90 days, Falling Shares data shows. The estimate moved from -1.02 to -1.32, reflecting growing pessimism among analysts about the firm's profitability trajectory.
Stock underperforms peers and sector
The sell-off left the stock 61.0% below its 52-week high of $24.24, according to Yahoo Finance data. By Falling Shares' measure, almost all of the latest session's move was company-specific, with the company-specific component accounting for -15.8% of the total change.
In contrast, the broader market and sector performed well. The US Industrials sector (XLI) rose 1.3% on Wednesday, matching the S&P 500's gain. Applied Aerospace & Defense's 5-day change of -0.8% and 1-month decline of 10.8% highlight its recent underperformance relative to the market.
The stock is rated Unstable by Falling Shares, with an annualised volatility of 83.7% compared to 14.7% for the benchmark. The company has seen 34 sessions with moves of 5% or more in the past six months, indicating a history of sharp price swings.