Why Is AAR (AIR) Stock Soaring Today

What Happened?

Shares of aviation and defense services provider AAR CORP (NYSE:AIR) jumped 10.9% in the afternoon session after the company reported record sales and profitability for its fiscal fourth quarter and full-year 2025. The aviation services provider announced fourth-quarter adjusted earnings of $1.16 per share, a 32% increase from the prior year, handily beating analyst expectations. Revenue for the quarter also impressed, rising 15% to $755 million. The strong performance was driven by robust demand in both its commercial and government businesses, particularly in its Parts Supply segment. The company highlighted its successful integration of a recent acquisition and the divestiture of its landing gear business as key strategic moves that are now delivering higher growth and margins. Following the strong report, RBC Capital raised its price target on the stock to $85 from $75, maintaining an "Outperform" rating.

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What Is The Market Telling Us

AAR’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. But moves this big are rare even for AAR and indicate this news significantly impacted the market’s perception of the business.

AAR is up 35.8% since the beginning of the year, and at $83.62 per share, has set a new 52-week high. Investors who bought $1,000 worth of AAR’s shares 5 years ago would now be looking at an investment worth $4,382.

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