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

AstroNova (ALOT) reported fiscal 2026 Q3 earnings on Dec 10, 2025, with net income surging 57.5% to $378K (EPS $0.05) despite a 3.1% revenue decline to $39.17M. The company maintained its full-year revenue guidance of $149–$154M and adjusted EBITDA margin target of 7.5%–8.5%.

Revenue

Total revenue fell 3.1% to $39.17M in Q3 2026, driven by a 12.7% year-over-year decline in the Aerospace segment to $12.3M. The Product ID segment, however, saw 2.0% annual growth to $26.8M, bolstered by increased shipments of the AJ800 printer and productivity gains in AstroMachine. Supplies and service revenue also contributed meaningfully, with hardware sales rising to $12.72M.

Earnings/Net Income

Net income climbed 57.5% to $378K in Q3 2026, with EPS surging 66.7% to $0.05. The 66.7% EPS growth to $0.05 underscores strong profitability despite revenue contraction, driven by margin expansion and cost reductions.

Price Action

ALOT’s stock dropped 7.68% on the latest trading day but rose 9.66% weekly. Month-to-date, it fell 8.41%.

Post-Earnings Price Action Review

A strategy of buying ALOT shares post-earnings and holding for 30 days underperformed significantly, returning -41.12% versus the benchmark’s 67.96%. The excess return of -109.09% and CAGR of -16.30% highlight poor performance over three years. While the 0.00% maximum drawdown suggests risk mitigation during the holding period, the overall outcome remains lackluster.

CEO Commentary

CEO Jorik Ittmann emphasized progress in AstroNova’s transformation, noting improved customer engagement and operational performance. Product ID’s revenue growth was driven by AstroMachine productivity and AJ800 shipments, while Aerospace maintained 80% ToughWriter adoption. Challenges include delayed Product ID orders, though pipelines are rebuilding. Strategic priorities include $3M annualized cost reductions, sales force reorganization, and high-value product investments.

Guidance

AstroNova reiterated 2026 revenue guidance of $149M–$154M and a 7.5%–8.5% adjusted EBITDA margin. A 2027 royalty agreement expiration is expected to provide $2.2M annualized margin tailwinds, with stable Aerospace demand and Product ID order recovery anticipated in Q4.

Additional News

AstroNova announced a $27.5M credit facility to strengthen liquidity and refinance existing debt. CEO Jorik Ittmann highlighted ongoing cost-cutting initiatives, including a 10% global workforce reduction in the Product ID segment. The SEC 10-Q report detailed $6.4M in year-to-date debt reductions and a 230-basis-point gross margin expansion to 36.2%.