Aeries Technology 2026 Q1 Earnings Strong Performance as Net Income Surges 110.9%

Aeries Technology (AERT) reported its fiscal 2026 Q1 earnings on Aug 14th, 2025. The results marked a strong reversal from a year ago, with the company returning to profitability and posting record net income. The stock has seen significant post-earnings gains and management reaffirmed its guidance for the year, signaling confidence in the company’s strategic direction.

Aeries Technology reported Q1 2026 earnings that exceeded expectations, marking a dramatic turnaround from a significant net loss in the prior year. The company posted net income of $1.68 million, a 110.9% increase from a $15.32 million loss in Q1 2025. The guidance provided by the company was in line with expectations, reflecting confidence in continued operational improvements and growth from its AI-powered GCC services.

Revenue
The total revenue of Aeries Technology decreased by 8.0% to $15.33 million in 2026 Q1, down from $16.67 million in 2025 Q1.

Earnings/Net Income
Aeries Technology returned to profitability with EPS of $0.03 in 2026 Q1, reversing from a loss of $0.39 per share in 2025 Q1 (107.7% positive change). The company achieved a remarkable turnaround with net income of $1.68 million in 2026 Q1, representing a 110.9% positive swing from the net loss of $-15.32 million in 2025 Q1. This marked a new record high for fiscal Q1 net income, the highest in 3 years. The strong improvement in earnings reflects disciplined cost management and a focus on core services.

Price Action
The stock price of Aeries Technology has climbed 4.76% during the latest trading day, surged 36.99% during the most recent full trading week, and climbed 6.80% month-to-date.

Post-Earnings Price Action Review
The strategy of buying AERT shares after a revenue drop quarter-over-quarter on the financial report release date and holding for 30 days resulted in significant underperformance. Over the past three years, the strategy delivered an 87.98% loss, vastly underperforming the benchmark return of 48.76%. The excess return was -136.74%, and the strategy's CAGR was -71.36%, indicating substantial depreciation in the investment. Additionally, the strategy had a maximum drawdown of 0.00%, which implies that during the backtested period, the holding period was entirely within the 30-day window, potentially avoiding further losses. However, the strategy's Sharpe ratio was -0.61, and the volatility was high at 117.05%, suggesting that while the strategy minimized losses during the holding period, the overall performance was severely impacted by the preceding revenue drop.

CEO Commentary
Ajay Khare, CEO of Aeries Technology, emphasized the company’s transformation as the foundation for its record Q1 FY2026 performance, citing streamlined operations, cost discipline, and a focus on core AI-powered GCC services. He highlighted Aeries’ cash flow positivity, a $17 million net income improvement, and a stronger market position driven by AI innovation and PE partnerships. The CEO expressed optimism, stating that Aeries now has a scalable, high-margin model and the ability to reinvest in innovation and client success, positioning the company for a “strongest financial year in history.”

Guidance
Aeries reaffirmed its FY2026 guidance, expecting revenue between $74 million and $80 million, with Adjusted EBITDA projected in the range of $6 million to $8 million. The company anticipates continued growth from AI-enabled GCC delivery and Private Equity partnerships, leveraging its optimized cost structure and scalable model to drive profitability and cash flow.

Additional News
Notable developments in Nigeria over the past weeks include a U.S. Foreign Military Sale approved for Nigeria, valued at $346 million, and a significant increase in cholera cases in Zamfara State, with Médecins Sans Frontières reporting 1,500 suspected cases. Political activity also intensified, with the Peoples Democratic Party launching a 44-member zoning committee ahead of its national elective convention and the Rivers State Administrator noting a return to political stability through inclusive dialogue.