Why AAR (AIR) Stock Is Trading Up Today

What Happened?

Shares of aviation and defense services provider AAR CORP (NYSE:AIR) jumped 6.2% in the morning session after the company reported strong fourth-quarter 2025 results that surpassed analyst expectations and provided an optimistic forecast. 

AAR's sales for the quarter reached $795.3 million, a 15.9% increase compared to the same period last year, beating Wall Street's estimates by 4.4%. The company's adjusted earnings per share of $1.18 also topped expectations by a significant 14.2%. A key driver for the positive sentiment was the company's strong outlook. For its upcoming first quarter of 2026, AAR projected revenue of about $820.6 million, which was nearly 4% ahead of what analysts were forecasting. The company also demonstrated improved efficiency, with its operating margin expanding to 8.4%, a significant jump from the negative 0.3% reported in the same quarter last year.

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What Is The Market Telling Us

AAR’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock gained 10.9% on the news that 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.

AAR is up 12.6% since the beginning of the year, and at $95.06 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 $2,461.

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