Innovative Solutions and Support (ISSC) Down 41.5% Since Q3 2025 Release

​Innovative Solutions and Support, Inc. (NASDAQ:ISSC) is one of the Undervalued Aerospace Stocks to Buy Now. Innovative Solutions and Support, Inc. (NASDAQ:ISSC) released its fiscal third quarter results on August 14, and the stock has declined more than 41.5% since the announcement.

​The company reported a revenue of $24.1 million, which grew 105% year-over-year and was ahead of Wall Street’s target by $4.94 million. The EPS of $0.14 fell short of the consensus by $0.02. Management noted that this was due to the higher costs on the F-16 product line as Honeywell incurred extra expenses to build safety stock before fully transferring production to the company’s new Exton facility. Management noted that once the transition is complete, Innovative Solutions and Support, Inc. (NASDAQ:ISSC) expects improved efficiencies and better margins in fiscal 2026.

​The company has finished construction of its Exton facility and expects to complete the interior setup by early fall. This expansion is expected to increase manufacturing capacity and support integration of the new F-16 product line.

Regardless of a 41.5% decrease in share price, Wall Street remains bullish on the stock as analysts’ 12-month price target of $15.55 reflects a 35.22% upside from current levels.

​Innovative Solutions and Support, Inc. (NASDAQ:ISSC) designs and manufactures advanced avionic systems for commercial, business, and military aircraft.

While we acknowledge the potential of ISSC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.