Innovative Aerosystems (ISSC) is drawing attention after first quarter fiscal 2026 results showed record revenue of US$21.81 million and net income of US$4.06 million, supported by new commercial and military contract activity.

The strong first quarter update has come after a powerful run in the shares, with a 132.20% 90 day share price return and a 129.78% 1 year total shareholder return. However, the 30 day share price return of an 11.08% decline hints that recent momentum has cooled slightly.

If this earnings jump has you looking beyond a single avionics name, it could be a good time to scan other aerospace and defense suppliers and see which 30 robotics and automation stocks stand out as potential research candidates.

With the shares up sharply over the past year, yet still sitting about 21% below the US$24.00 analyst price target and at an estimated 39% discount to intrinsic value, you have to ask: Is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 17.4% Undervalued

With Innovative Aerosystems closing at $19.83 versus a narrative fair value of $24.00, the current valuation sits below what the most followed storyline implies, and that gap rests on some firm assumptions about growth, margins and future deal making.

The expansion of manufacturing capacity and increased in house production capabilities are expected to improve operating margins and EBITDA by reducing dependency on external suppliers and enhancing scale efficiencies.

Strategic acquisitions, particularly those from Honeywell, offer significant revenue synergies and cross selling opportunities, which could enhance both revenue and profitability through diversified offerings and new customer bases.

Want to see what is baked into that $24.00 fair value? The narrative leans on steady revenue build, firmer margins and a future earnings multiple that has to compress from here. Curious how those pieces fit together, and what that implies for returns by the end of the decade?

Result: Fair Value of $24.00 (UNDERVALUED)

However, the story could stall if military contracts deliver lower margins than expected, or if recent Honeywell acquisitions prove harder to integrate and contribute meaningfully.

Build Your Own Innovative Aerosystems Narrative

If you look at the numbers and come to a different conclusion, or simply prefer to lean on your own work, you can build a tailored view in just a few minutes, starting with Do it your way

A great starting point for your Innovative Aerosystems research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.