Aerospace and defense company HEICO (NYSE: HEI) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 23.1% year on year to $1.41 billion. Its GAAP profit of $1.67 per share was 11.4% above analysts’ consensus estimates.
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Founded in 1957, HEICO (NYSE: HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, HEICO grew its sales at an incredible 23.8% compounded annual growth rate. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. HEICO’s annualized revenue growth of 17% 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 23.1%, and its $1.41 billion of revenue topped Wall Street estimates by 4.4%.
Looking ahead, sell-side analysts expect revenue to grow 10.9% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is noteworthy and implies the market sees success for its products and services.
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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 22.5%.
Looking at the trend in its profitability, HEICO’s operating margin rose by 2 percentage points over the last five years, as its sales growth gave it operating leverage.
In Q2, HEICO generated an operating margin profit margin of 25.1%, up 2 percentage points year on year. This increase was a welcome development and shows it was more efficient.
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
HEICO’s astounding 24.2% 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 shorter period to see if we are missing a change in the business.
HEICO’s two-year annual EPS growth of 32.7% was fantastic and topped its 17% 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 Q2, HEICO reported EPS of $1.67, up from $1.26 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 9.9% from $6.01 to $6.60.
We were impressed by how significantly HEICO blew past analysts’ EBITDA expectations this quarter. We were also excited its revenue 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 remained flat at $359.50 immediately after reporting.
HEICO may have had a good quarter, but does that mean you should invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).