AstroNova 2026 Q2 Earnings Deepening Losses as Net Income Declines 299.7%

AstroNova (ALOT) reported its fiscal 2026 Q2 earnings on September 9, 2025. The results showed a continued struggle for the company, with both revenue and earnings declining significantly. AstroNova missed expectations by posting a wider net loss and deeper per-share losses, with no guidance adjustments provided in the report.

AstroNova reported a total revenue of $36.10 million in fiscal 2026 Q2, marking a 10.9% decline from $40.54 million in the same period a year ago. Hardware revenue stood at $10.94 million, while the Supplies segment generated $19.50 million. The Service and Other category contributed $5.67 million to the total. The decline in hardware sales appears to have had a significant impact on the overall drop in revenue.

The company’s losses widened significantly in Q2 2026, with a net loss of $-1.24 million, compared to a $-311,000 loss in the prior year period. On a per-share basis, losses expanded to $0.16 from $0.04, representing a 300.0% increase in the negative earnings per share. This represents a clear deterioration in the company’s profitability.

In the wake of the earnings report, AstroNova's stock price experienced a sharp decline. The stock plummeted 15.35% during the latest trading day, 14.42% over the most recent full trading week, and 9.21% month-to-date. The negative price action reflects investor concerns over the company's deteriorating financial performance.

Jorik Ittmann, President, CEO & Director, outlined a strategic plan to reposition the company. He emphasized a focus on simplifying processes, improving customer responsiveness, and aligning resources toward a customer-centric sales strategy, particularly in the Product ID segment. Challenges remain, including validating the MTEX product line and overcoming production bottlenecks in Mail & Sheet printers. However, Ittmann remains optimistic about the adoption of the ToughWriter, which accounted for 50% of Aerospace shipments in the second quarter. He anticipates improved Aerospace margins in the second half of the year due to higher volume and better product mix. Management also aims to achieve $3 million in annualized cost reductions and is focused on transparency and accountability to rebuild stakeholder trust.

AstroNova expects the full benefits of the $3 million in annualized cost reductions to be realized in the second half of fiscal 2026. The company is also monitoring the potential of its new printers and anticipates steady growth in Aerospace hardware sales as aircraft build rates increase. Management aims to reach over 80% ToughWriter shipments by the end of the fiscal year and expects Aerospace gross margins to improve with a better product mix. CapEx is expected to remain below $0.5 million for the year, and efforts are underway to restructure the company’s debt.

In the Nigerian business context, key non-earnings-related news included Google noting that Nigerian students are increasingly relying on AI for academic support. The Nigerian government, under President Bola Tinubu, announced stricter oversight for stablecoin transactions, signaling a more regulated approach to digital assets. Additionally, the National Inland Waterways Authority (NIWA) banned unlicensed boat operations to enhance waterway safety. These developments reflect broader regulatory and technological shifts affecting business operations in Nigeria.