Aerospace and defense company HEICO (NSYE:HEI) reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 25.3% year on year to $1.38 billion. Its GAAP profit of $1.66 per share was 25.1% above analysts’ consensus estimates.

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Company Overview

Founded in 1957, HEICO (NYSE: HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, HEICO’s 23.7% annualized revenue growth over the last five years was incredible. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. HEICO’s annualized revenue growth of 18.3% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, HEICO reported robust year-on-year revenue growth of 25.3%, and its $1.38 billion of revenue topped Wall Street estimates by 9.9%.

Looking ahead, sell-side analysts expect revenue to grow 8.6% over the next 12 months, a deceleration versus the last two years. Still, this projection is above the sector average and implies the market is forecasting some success for its newer products and services.

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Operating Margin

HEICO has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 22.2%.

Looking at the trend in its profitability, HEICO’s operating margin rose by 1.7 percentage points over the last five years, as its sales growth gave it operating leverage.

This quarter, HEICO generated an operating margin profit margin of 25.5%, up 2.9 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.

HEICO’s astounding 24.5% annual EPS growth over the last five years aligns with its revenue performance. This tells us its incremental sales were profitable.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

HEICO’s two-year annual EPS growth of 32.8% was fantastic and topped its 18.3% two-year revenue growth.

We can take a deeper look into HEICO’s earnings to better understand the drivers of its performance. HEICO’s operating margin has expanded over the last two years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q1, HEICO reported EPS of $1.66, up from $1.12 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects HEICO’s full-year EPS to grow 6.6% from $5.60 to $5.97.

Key Takeaways from HEICO’s Q1 Results

It was good to see HEICO beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 10.7% to $342.50 immediately after reporting.

Indeed, HEICO had a rock-solid quarterly earnings result, but is this stock a good investment here? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).