Astronics (ATRO) Surges 8.75% on Record Revenue and 2026 Guidance, Nears 52-Week High Amid Sector Rally

Summary
• Astronics reports Q4 revenue of $236M–$239M, exceeding guidance and up 14% YoY
• 2026 revenue guidance of $950M–$990M signals 10–15% growth, with CEO Peter Gundermann calling it a 'year of momentum'
• Shares spike 8.75% to $63.35, hitting a 52-week high of $65.47

Astronics Corporation (ATRO) is surging on Thursday after unveiling a blockbuster fourth-quarter performance and aggressive 2026 revenue targets. The aerospace and defense tech firm’s stock has climbed 8.75% to $63.35, nearing its 52-week high of $65.47, driven by a 14% YoY revenue increase and a 10–15% growth outlook for 2026. With the Aerospace & Defense sector rallying alongside, investors are betting on sustained demand for Astronics’ power and connectivity solutions.

Q4 Revenue Beat and 2026 Guidance Ignite Bullish Sentiment
Astronics’ 8.75% intraday surge is directly tied to its preliminary Q4 revenue of $236M–$239M, which surpassed the $230M analyst estimate and marked a 14% YoY increase. The company also raised full-year 2025 revenue to $860M (up 8% YoY) and set 2026 guidance at $950M–$990M, reflecting 10–15% growth. CEO Peter Gundermann emphasized that strong bookings ($257M in Q4) and a $924M full-year order backlog will drive higher volume, profitability, and cash flow. The stock’s rally aligns with the company’s strategic focus on next-gen aircraft systems and M&A expansion, which position it to capitalize on aerospace and defense industry tailwinds.

Aerospace & Defense Sector Gains Momentum as Astronics Leads Rally
The Aerospace & Defense sector is bolstered by Astronics’ performance, with sector leader Lockheed Martin (LMT) rising 3.9% on Thursday. Astronics’ 8.75% gain outpaces LMT’s rally, reflecting its aggressive growth trajectory and strong backlog. Sector-wide, defense spending and next-gen aircraft demand are driving optimism, as evidenced by Lockheed’s recent F-35 production record and the U.S. military’s focus on modernization. Astronics’ 2026 guidance, coupled with its M&A-driven expansion, positions it as a key beneficiary of the sector’s momentum.

Options and Technicals Signal Aggressive Bullish Play on ATRO
• 200-day MA: $38.40 (well below current price)
• RSI: 70.15 (overbought)
• MACD: 1.76 (bullish divergence)
• Bollinger Bands: Price at $63.35 vs. upper band $59.32 (oversold)

Astronics’ technicals and options chain suggest a continuation of the bullish trend. The stock is trading above all key moving averages, with RSI near overbought territory and MACD signaling momentum. The 52-week high at $65.47 is a critical level to watch, as a break above could trigger a retest of the upper Bollinger Band. For options traders, the ATRO20260116C65 and ATRO20260116C60 contracts stand out:

• ATRO20260116C65 (Call, $65 strike, Jan 16 expiration):
- IV: 55.76% (moderate)
- Leverage Ratio: 44.70% (high)
- Delta: 0.38 (moderate sensitivity)
- Theta: -0.22 (high time decay)
- Gamma: 0.069 (strong price sensitivity)
- Turnover: 44,658 (high liquidity)
- Payoff at 5% upside ($66.51): $1.51/share
- This contract offers high leverage and liquidity, ideal for a short-term bullish bet on a breakout above $65.

• ATRO20260116C60 (Call, $60 strike, Jan 16 expiration):
- IV: 54.62% (moderate)
- Leverage Ratio: 15.76% (moderate)
- Delta: 0.73 (high sensitivity)
- Theta: -0.29 (high time decay)
- Gamma: 0.060 (strong price sensitivity)
- Turnover: 16,744 (high liquidity)
- Payoff at 5% upside ($66.51): $6.51/share
- This contract provides a balance of delta and leverage, offering substantial upside if the stock continues its rally.

Aggressive bulls should consider ATRO20260116C65 into a breakout above $65, while those seeking a safer entry might target ATRO20260116C60 as a core position. Both contracts benefit from high gamma and liquidity, making them ideal for capitalizing on Astronics’ momentum.

Backtest Astronics Stock Performance
The backtest of AT&T's (ATRO) performance after a 9% intraday surge from 2022 to the present indicates positive short-to-medium-term gains, with the 3-Day win rate at 56.66%, the 10-Day win rate at 54.47%, and the 30-Day win rate at 61.03%. The maximum return during the backtest period was 11.52%, which occurred on day 59, suggesting that ATRO can capitalize on intraday movements to generate favorable returns.

Astronics’ 2026 Outlook and Sector Strength Signal High-Conviction Trade
Astronics’ 8.75% surge is a testament to its robust Q4 performance and aggressive 2026 guidance, which aligns with the Aerospace & Defense sector’s growth trajectory. With the stock nearing its 52-week high and technical indicators pointing to continued momentum, investors should monitor the $65.47 level for a potential breakout. Sector leader Lockheed Martin’s 3.9% gain reinforces the industry’s strength, making Astronics a compelling play for those bullish on aerospace demand. For immediate action, consider ATRO20260116C65 for a high-leverage short-term bet or ATRO20260116C60 for a balanced core position. Watch for a sustained move above $65 to confirm the next leg higher.