Filing Flows › Innovative Solutions & Support (IA) › Q3 FY26
Innovative Solutions & Support (IA) Q3 FY26 earnings results (third quarter fiscal 2026)
10-Q filed Aug 13, 2026
Innovative Solutions & Support (IA) reported revenue of $26.7M for the third quarter fiscal 2026 (Q3 FY26), +11% from a year earlier and +20% from the quarter before. Operating margin was 22.6%, net earnings $4.5M (16.8% of revenue).
Innovative Solutions & Support, Q3 FY26: revenue $26.7M (+11% year over year), operating margin 22.6%, net earnings $4.5M, operating cash flow $5.1M. The chart follows the revenue to costs, profit and cash.
| Q3 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $26.7M | +20% | +11% |
| Gross profit | $13.8M | +21% | +61% |
| Operating profit | $6.0M | +22% | +72% |
| Net earnings | $4.5M | +31% | +84% |
| Operating cash flow | $5.1M | +122% | -29% |
| Free cash flow | $4.6M | +592% | +31% |
What changed
Revenue was $26.7M in Q3 FY26, up 11% year over year and up 20% from the previous quarter. Product was the largest line at 66% of revenue. Services added $1.7M year over year (up 22%), 65% of the total change.
Gross margin was 51.7%, up 16.1 points from Q3 FY25. Operating profit was $6.0M, a 22.6% margin (up 8.0 points year over year). Of the extra revenue versus Q3 FY25, 97% reached operating profit, above the 15% margin then. Operating expenses grew 53% against revenue growth of 11%. The fastest-growing cost line was Research & development (+105%). Net earnings were $4.5M, up 84% year over year. The effective tax rate was 10.5%.
Operating cash flow was $5.1M (down 29% year over year), 113% of net earnings. Non-cash charges added back $1.4M of depreciation and amortization and $654K of share-based compensation. Working capital and other items used $1.4M. Capital expenditures of $476K left free cash flow of $4.6M.
Questions
What was Innovative Solutions & Support's revenue in the third quarter fiscal 2026?
Innovative Solutions & Support (IA) reported revenue of $26.7M for the third quarter fiscal 2026 (Q3 FY26), +11% from a year earlier and +20% from the quarter before.
Was Innovative Solutions & Support profitable in the third quarter fiscal 2026?
Operating profit was $6.0M (22.6% of revenue) and net earnings $4.5M.