AstroNova 2026 Q3 Earnings Net Income Surges 57.5% Despite Revenue Decline

AstroNova (ALOT) reported fiscal 2026 Q3 earnings on Dec 10, 2025, with net income rising 57.5% to $378,000 from $240,000 in 2025 Q3. The company maintained full-year revenue guidance of $149–$154 million, aligning with expectations.

Revenue

AstroNova’s total revenue declined 3.1% to $39.17 million in 2026 Q3, compared to $40.42 million in the prior year. The Product ID segment generated $26.8 million in revenue, driven by 14% growth in AstroMachine sales and the AJ800 printer. The Aerospace segment contributed $12.3 million, maintaining its leading position with over 80% ToughWriter shipments. Hardware, supplies, and service revenue totaled $12.72 million, $20.57 million, and $5.88 million, respectively.

Earnings/Net Income

Earnings per share (EPS) surged 66.7% to $0.05 in 2026 Q3, up from $0.03 in 2025 Q3. Net income expanded significantly, reflecting improved cost management and margin optimization. The EPS growth underscores the company’s ability to enhance profitability despite revenue challenges.

Post-Earnings Price Action Review

The strategy of buying AstroNova shares after a revenue increase quarter-over-quarter and holding for 30 days underperformed, with a CAGR of -16.30% and excess return of -109.09%. This fell far below the benchmark return of 67.96%, highlighting high risk and negative relative performance. The strategy’s maximum drawdown of 0.00% and Sharpe ratio of -0.36 further indicate suboptimal returns.

CEO Commentary

Jorik Ittmann emphasized progress in AstroNova’s transformation, including improved customer engagement and operational efficiency. Product ID growth was driven by AstroMachine and AJ800 printer demand, while Aerospace maintained its market position. Strategic priorities include cost containment ($3M annualized savings achieved), sales talent investment, and digital marketing initiatives.

Guidance

AstroNova reiterated full-year fiscal 2026 guidance of $149–$154 million in revenue, implying Q4 revenue of $36–$41 million. Adjusted EBITDA margin guidance remains at 7.5–8.5%.

Additional News

AstroNova announced a $27.5M credit facility to strengthen liquidity, reflecting confidence in financial resilience. The company acquired MTEX, expanding its Product ID portfolio with mid-to-high volume direct-to-package printers. Restructuring actions included a 10% global workforce reduction in the Product ID segment, with realignment of MTEX operations in Portugal. These moves aim to enhance operational efficiency and align with long-term growth strategies.