CAE Inc. (CAE) Reports FQ3 2026 Revenue Growth of 2% Led by Strong Defense Performance

CAE Inc. (NYSE:CAE) is one of the best stocks for beginners with little money in 2026. On February 12, CAE released its FQ3 2026 earnings report, with total revenue reaching $1.25 billion, which was a 2% increase year-over-year. The standout performer was the Defense segment, which saw a 14% revenue jump and a 38% increase in adjusted operating income, driven by superior program execution and strategic partnerships with entities like Saab and the Australian Defense Force.

In contrast, the Civil segment faced significant headwinds, with revenue declining 5% to $717.2 million. This downturn was primarily due to lower simulator sales and a drop in training center utilization, which fell from 76% to 71%. In response, the CEO announced a transformation plan to rationalize the commercial simulator network, which involves retiring 25 underperforming simulators over the next 12 to 24 months.

While this move resulted in $7.3 million worth of transformation-related expenses this quarter, management expects it to eventually boost utilization by 400 basis points and better align the network with current market demand. Looking ahead, CAE Inc. (NYSE:CAE) is refocusing its portfolio by identifying non-core assets, representing roughly 8% of revenue, for potential divestiture.

CAE Inc. (NYSE:CAE), together with its subsidiaries, provides training, simulation, and critical operation solutions in Canada, the US, the UK, Europe, Asia, Oceania, Africa, and the rest of the Americas. It operates through two segments: Civil Aviation and Defense & Security.

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