Aeries Technology 2026 Q2 Earnings 127.8% Net Income Turnaround

Aeries Technology (AERT) exceeded expectations with a dramatic net income turnaround, reporting $0.64 million profit in Q2 2026 versus a $2.31 million loss in the prior-year period. The company maintained its FY2026 Adjusted EBITDA guidance of $6M–$8M despite stock price declines, signaling operational resilience.

Revenue

Total revenue rose 2.9% year-over-year to $17.36 million in Q2 2026, reflecting improved demand for AI-driven solutions and global delivery services.

Earnings/Net Income

Aeries returned to profitability with EPS of $0.01, a 120.0% improvement from a $0.05 loss in 2025 Q2. Net income surged to $642,000, a 127.8% positive swing from a $2.31 million loss, marking a record high for fiscal Q2 net income in three years. The EPS recovery underscores the company’s successful cost discipline and operational restructuring.

Price Action

The stock price declined 2.75% on the latest trading day, 0.77% for the week, and 8.98% month-to-date, reflecting broader market volatility and investor caution despite earnings strength.

Post-Earnings Price Action Review

The strategy of buying Aeries shares on the date of its revenue raise announcement and holding for 30 days yielded positive returns, with an average gain of 12.5% per transaction. Maximum and minimum returns of 19.3% and 6.5%, respectively, highlight the stock’s volatility amid significant earnings movements. This pattern suggests robust short-term investment potential, particularly for traders capitalizing on earnings-driven momentum.

CEO Commentary

CEO Ajay Khare emphasized Q2 as the completion of Aeries’ turnaround, crediting AI-led global delivery, dual-shore GCC scale, and private equity sponsor relationships. The company plans to leverage AI platforms and nearshore operations to scale profitably in Q3, with optimism about closing new client opportunities.

Guidance

CFO Daniel Webb reiterated FY2026 Adjusted EBITDA guidance of $6M–$8M, aligning with Q3 contract ramp-ups and operating discipline. The company aims to balance automation investments with profitability, leveraging AI and GCC models to sustain performance.

Additional News

Aeries announced a multi-million-dollar AI partnership to expand its India footprint and capabilities, alongside plans to hire over 500 new roles in India and Mexico. The company also unveiled an AI-powered content automation solution delivering 80% efficiency gains and 12× throughput improvements. Additionally, Aeries celebrated a 10-year client partnership milestone, reinforcing long-term trust and operational durability.

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