It has been about a month since the last earnings report for AAR (AIR Quick QuoteAIR - Free Report) . Shares have lost about 6.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is AAR due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

AAR Q1 Earnings and Revenues Rise Year Over Year

AAR Corp. reported first-quarter fiscal 2027 adjusted earnings of $1.49 per share, which improved 38% from the year-ago quarter’s level of $1.08.

The company reported GAAP earnings of $1.00 per share compared with 95 cents in the prior-year quarter.

The year-over-year improvement in the bottom line can be attributed to strong operating performance.

AIR’s Total Sales

In the quarter under review, AAR generated net sales of $918 million. The reported figure increased 24% from $739.6 million recorded in the year-ago quarter.

The year-over-year improvement can be attributed to growth across all three core segments, including continued above-market commercial distribution sales and acquisition contributions. Commercial customer sales increased 28%, while government customer sales rose 14%.

AAR: Segment Details

Parts Supply sales surged 30.5% to $414.8 million from $317.8 million in the prior-year quarter. Organic growth in new-parts distribution was 23%, with commercial distribution rising 21% organically and government distribution increasing 28%.

Repair, Engineering and Software sales jumped 31.4% to $297.5 million. Growth reflected the HAECO Americas acquisition as well as organic growth across Airframe MRO, Component MRO and Software.

Government Solutions sales increased 3.7% to $138.8 million. Growth in Mobility Systems and newer higher-margin government programs more than offset lower activity under the Worldwide Aviation Support Services program.

Legacy Commercial Programs recorded sales of $66.9 million compared with $61.5 million in the prior-year quarter.

AIR’s Operational Update

AIR’s adjusted operating income increased 35.5% to $97 million, while adjusted operating margin improved 90 basis points to 10.6%.

Selling, general and administrative expenses amounted to $107 million compared with $71.8 million a year ago.

Net interest expenses for the quarter totaled $16.2 million compared with $18.5 million in the year-ago period.

Financial Details of AAR

As of Aug. 31, 2026, AAR’s cash and cash equivalents amounted to $104.5 million compared with $84 million as of May 31, 2026.

The company’s long-term debt totaled $879.6 million as of Aug. 31, 2026, down from $893.9 million as of May 31, 2026.

In the first quarter of fiscal 2027, net cash provided from operating activities was $55.8 million against net cash used in operating activities of $44.9 million in the year-ago period.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, AAR has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

AAR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.