Looking back on aerospace and defense stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Axon (NASDAQ: AXON) and its peers.
Emissions and automation are important in aerospace, so companies that boast advances in these areas can take market share. On the defense side, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression toward Taiwan–have highlighted the need for consistent or even elevated defense spending. As for challenges, demand for aerospace and defense products can ebb and flow with economic cycles and national defense budgets, which are unpredictable and particularly painful for companies with high fixed costs.
The 32 aerospace and defense stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was 3.6% above.
In light of this news, share prices of the companies have held steady as they are up 3.5% on average since the latest earnings results.
Axon (NASDAQ: AXON)
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Axon reported revenues of $807.3 million, up 33.7% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ ARR and EBITDA estimates.
Interestingly, the stock is up 33.9% since reporting and currently trades at $516.63.
Best Q1: Rocket Lab (NASDAQ: RKLB)
Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ: RKLB) offers rockets designed for launching small satellites.
Rocket Lab reported revenues of $200.3 million, up 63.5% year on year, outperforming analysts’ expectations by 4.9%. The business had an incredible quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Rocket Lab delivered the highest guidance raise among its peers. The market seems happy with the results as the stock is up 28.7% since reporting. It currently trades at $101.15.
Is now the time to buy Rocket Lab? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: AerSale (NASDAQ: ASLE)
Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ: ASLE) delivers full-service support to mid-life commercial aircraft.
AerSale reported revenues of $70.61 million, up 7.4% year on year, falling short of analysts’ expectations by 18.9%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and EPS in line with analysts’ estimates.
AerSale delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 13.6% since the results and currently trades at $6.34.
Read our full analysis of AerSale’s results here.
Ducommun (NYSE: DCO)
California’s oldest company, Ducommun (NYSE: DCO) is a provider of engineering and manufacturing services for high-performance products primarily within the aerospace and defense industries.
Ducommun reported revenues of $209 million, up 8.6% year on year. This print surpassed analysts’ expectations by 4.8%. Overall, it was an exceptional quarter as it also produced an impressive beat of analysts’ EBITDA estimates.
The stock is up 28.8% since reporting and currently trades at $181.23.
Read our full, actionable report on Ducommun here, it’s free.
Howmet (NYSE: HWM)
Inventing the first forged aluminum truck wheel, Howmet (NYSE: HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Howmet reported revenues of $2.31 billion, up 19.1% year on year. This number beat analysts’ expectations by 3.2%. It was an exceptional quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 5.9% since reporting and currently trades at $271.59.
Read our full, actionable report on Howmet here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
