Applied Aerospace shares plunge 12% after Q3 revenue growth and lowered guidance
The SpaceX supplier reported strong third-quarter revenue growth but cut its full-year outlook, triggering a sharp sell-off in New York.
The SpaceX supplier reported strong third-quarter revenue growth but cut its full-year outlook, triggering a sharp sell-off in New York. Published 2026-11-11 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 12.3% on Wednesday after the company reported third-quarter earnings and lowered its full-year revenue guidance.
Revenue growth masked by weak outlook
Applied Aerospace & Defense reported third-quarter revenue of $182.1 million, representing a 48.6% increase compared to the prior year, according to its earnings release. The company attributed the growth to strong demand from the space and defense sectors, noting that its role as a supplier to SpaceX continues to drive volume.
However, the company simultaneously lowered its 2026 revenue guidance, which triggered the immediate market reaction. Pre-market trading had already seen the stock drop 5.6% before the bell, with the decline deepening to 12.3% by the close of regular trading. The company did not provide a detailed explanation for the guidance cut in the initial release, though it cited ongoing operational adjustments.
Stock underperforms market and sector
While the broader market rallied, with the S&P 500 gaining 1.5% and the US Industrials sector (XLI) rising 1.4% on Wednesday, Applied Aerospace moved sharply in the opposite direction. The stock’s 12.3% drop contrasted with the positive sentiment in the industrial and aerospace sectors, suggesting the move was driven by company-specific news rather than broader macroeconomic fears.
By Falling Shares' measure, almost all of the move was company-specific, with the market and sector factors contributing positively to the index but failing to offset the negative sentiment toward the stock. The stock has lost 60.8% of its value from its 52-week high of $24.24, and it is currently trading near the bottom of its 52-week range, which sits at $8.40.
The stock’s instability has been a recurring theme, with Falling Shares rating it as Unstable. The company has seen 34 sessions with moves of 5% or more in the past six months, and its annualized volatility of 83.3% is significantly higher than the benchmark’s 14.8%. This volatility has been exacerbated by recent earnings estimate revisions, with consensus EPS for the current year cut by 1028.6% over the last 90 days.