Analyst Consensus ?
ConsensusHold27 ratings
Bullish1140.7%
Neutral1555.6%
Bearish13.7%
Huntington Ingalls Industries, Inc. · HII · FY2026 Q1 · Calendar Q2 2026
HII Beats Q1 Estimates but Stock Slides 10% as Guidance Holds Steady
HII delivered a modest beat in Q1 FY2026, with revenue up 13.4% YoY to $3.1 billion and EPS of $3.79, driven by 18% shipbuilding revenue growth. However, the stock sold off sharply — down roughly 10% on the session with nearly 4x normal volume — after management maintained rather than raised full-year guidance. Coming off a Q4 report where guidance was lifted, investors appear to have expected more. The pullback is compounded by Q2 free cash flow guidance near breakeven, Ingalls margin pressure from LHA 8 schedule delays, and the challenge of generating roughly $1 billion in free cash flow in the back half. The stock has continued to drift lower since, now trading at $324, near the bottom of analyst price targets.
Reported Before market openNYSEIndustrials
$12.60B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$3.79
Consensus $3.70
EPS surprise
+2.4%
Reported versus consensus
Reported revenue
$3.10B
Consensus $3.02B
Revenue surprise
+2.6%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
-10.2%
Event window
SPY move
+0.8%
Same window
Abnormal move
-11.1%
Stock minus SPY
Volume
4.0×
Versus trailing sessions
Subsequent drift
-11.8%
Up to 20 sessions
HIISPY benchmark
Ask FN2 about HII FY2026 Q1
Transcript, numbers and history already loaded
Why did HII fall 10.2% after beating EPS estimates in FY2026 Q1?What changed in HII's guidance and outlook in FY2026 Q1?Give me the bull and bear case for HII after FY2026 Q1 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Revenue grew 13.4% YoY to $3.1 billion, beating the $3.02 billion consensus estimate by 2.6%. EPS of $3.79 exceeded the $3.70 estimate by 2.4%. Shipbuilding revenue rose 18% YoY on higher throughput at both Ingalls and Newport News. Mission Technologies secured multi-award contracts totaling over $25 billion in ceiling value. Despite the beat, shares fell approximately 10.25% on the session while SPY rose 0.80%, with volume running 3.96x the baseline. The stock has since drifted an additional 11.8% lower and now trades at $324, near the lowest analyst target of $325. The negative reaction contrasts with the prior quarter, when guidance was raised and the bullish score stood at 82.
Guidance delta
Management maintained full-year 2026 guidance rather than raising it, a shift from the prior quarter's raised outlook. Q2 shipbuilding revenue was guided to approximately $2.4 billion with free cash flow near breakeven. The company still needs to generate roughly $1 billion in free cash flow in the back half of 2026. In the prior quarter, medium-term shipbuilding revenue growth guidance was lifted to approximately 6%, and 2026 free cash flow outlook was raised to $500-$600 million. Capex outlook remains increasing, with hundreds of millions planned for Newport News capital projects.
Key takeaways
- Revenue grew 13.4% YoY to $3.1 billion, beating the $3.02 billion consensus by 2.6%.
- EPS of $3.79 exceeded the $3.70 estimate by 2.4%.
- Shipbuilding revenue rose 18% YoY, driven by higher throughput at Ingalls and Newport News.
- Mission Technologies secured multi-award contracts totaling over $25 billion in ceiling value.
- Full-year 2026 guidance was maintained, not raised; Q2 shipbuilding revenue guided to ~$2.4 billion with free cash flow near breakeven.
- Stock fell ~10.25% on the session (3.96x normal volume) and has since drifted an additional ~11.8% lower, now trading at $324 near the lowest analyst target of $325.
Management priorities
- Scale up autonomous vessel production and extend the Odyssey software platform
- Double throughput at the Charleston, SC facility with added structural fabrication and outfitting
- Invest hundreds of millions in capital projects at Newport News to support carrier and submarine programs
- Continue expanding the apprenticeship pipeline and high-skill labor base
- Pursue new contract awards for battleship, frigate, and additional unmanned systems
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Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$316.21Current
$215Low
$297.27Average
$439High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 29, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Bernstein | Market Perform | Market Perform | Maintain | Oct 14, 2026 |
| TD Cowen | Buy | Buy | Maintain | Oct 9, 2026 |
| Wells Fargo | Equal Weight | Equal Weight | Maintain | Aug 4, 2026 |
| Citigroup | Buy | Buy | Maintain | Jul 31, 2026 |
| B of A Securities | Neutral | Underperform | Upgrade | Feb 12, 2026 |
| Goldman Sachs | Buy | Buy | Maintain | Jan 20, 2026 |
| JP Morgan | Neutral | Neutral | Maintain | Nov 3, 2025 |
| Barclays | Equal Weight | Equal Weight | Maintain | Aug 4, 2025 |
| Deutsche Bank | Hold | Hold | Maintain | Nov 1, 2024 |
| Alembic Global | Neutral | Overweight | Downgrade | Nov 1, 2024 |
| Wolfe Research | Peer Perform | Outperform | Downgrade | Oct 10, 2024 |
| Vertical Research | Hold | Buy | Downgrade | Oct 10, 2024 |
| Credit Suisse | Neutral | Neutral | Maintain | Feb 10, 2023 |
| Cowen & Co. | Outperform | Market Perform | Upgrade | Apr 14, 2022 |
| UBS | Buy | Buy | Maintain | Jun 11, 2020 |
| Stifel | Hold | Sell | Upgrade | May 22, 2020 |
| RBC Capital | Outperform | Outperform | Maintain | May 21, 2020 |
| Seaport Global | Neutral | Neutral | Maintain | May 19, 2020 |
| Buckingham Research | Neutral | Buy | Downgrade | Feb 27, 2020 |
| Bank of America | Buy | Buy | Maintain | Aug 6, 2019 |
| Buckingham | Buy | Buy | Maintain | Sep 12, 2018 |
| Stifel Nicolaus | Sell | Sell | Maintain | May 4, 2018 |
| Guggenheim | Buy | Buy | Maintain | Jan 20, 2016 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | Mar 5, 2014 |
| CRT Capital | Hold | Buy | Downgrade | Mar 19, 2013 |
| Miller Tabak | Buy | Buy | Maintain | Aug 9, 2012 |
| Drexel Hamilton | Buy | Hold | Upgrade | Aug 9, 2012 |
Named analyst price targets
Upside is calculated against the persisted current price $316.21. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Bernstein | Analyst unavailable | $307 | $257.84 | -2.9% | Oct 14, 2026 |
| Goldman Sachs | Analyst unavailable | $439 | $267.07 | +38.8% | Oct 1, 2026 |
| Bernstein | Analyst unavailable | $327 | $270.95 | +3.4% | Sep 23, 2026 |
| Bernstein | Analyst unavailable | $341 | $294.63 | +7.8% | Aug 25, 2026 |
| Bernstein | Analyst unavailable | $337 | $271.05 | +6.6% | Jul 17, 2026 |
| Wells Fargo | Analyst unavailable | $325 | $289.46 | +2.8% | Jul 8, 2026 |
| Bernstein | Douglas Harned | $421 | $388.26 | +33.1% | Feb 11, 2026 |
| Goldman Sachs | Analyst unavailable | $419 | $397.77 | +32.5% | Feb 7, 2026 |
| Goldman Sachs | Analyst unavailable | $425 | $425.9 | +34.4% | Jan 20, 2026 |
| Bernstein | Analyst unavailable | $412 | $396.69 | +30.3% | Jan 12, 2026 |
| Bernstein | Douglas Harned | $362 | $303.56 | +14.5% | Nov 7, 2025 |
| Goldman Sachs | Analyst unavailable | $356 | $320.06 | +12.6% | Oct 31, 2025 |
| Deutsche Bank | Scott Deuschle | $264 | $285.38 | -16.5% | Oct 8, 2025 |
| Barclays | David Strauss | $235 | $233.18 | -25.7% | May 5, 2025 |
| Wolfe Research | Myles Walton | $335 | $293.93 | +5.9% | Mar 21, 2024 |
| Credit Suisse | Analyst unavailable | $244 | $228.11 | -22.8% | Jan 12, 2023 |
| Goldman Sachs | Analyst unavailable | $190 | $229.47 | -39.9% | Dec 15, 2022 |
| J.P. Morgan | Analyst unavailable | $250 | $223.21 | -20.9% | Nov 15, 2022 |
| Stifel Nicolaus | Joseph DeNardi | $215 | $213.24 | -32.0% | May 6, 2021 |
| Capital One Financial | Jonathan Raviv | $235 | $203.51 | -25.7% | Apr 15, 2021 |
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Start freeCompany context
Snapshot as of publicationHuntington Ingalls Industries, Inc. (HII) stands as a prominent American enterprise specializing in the comprehensive lifecycle management of military vessels, encompassing their design, construction, modernization, and maintenance. The company's diverse operations are segmented into three core divisions: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. HII is a primary builder of non-nuclear ships, delivering amphibious assault ships, expeditionary warfare vessels, surface combatants, and national security cutters to both the U.S. Navy and U.S. Coast Guard. Furthermore, it plays a critical role in providing nuclear-powered ships, including aircraft carriers and submarines, along with essential associated services such as refueling, extensive overhauls, and inactivation procedures.…
Historical context
All HII earningsIndustrials peers this season
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|---|---|---|---|---|
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| LHX L3Harris Technologies, Inc. | FY2026 Q3 · Calendar Q4 2026 | — | +6.8% | L3Harris lifts guidance as backlog and cash flow accelerate |
| AOS A. O. Smith Corporation | FY2026 Q3 · Calendar Q4 2026 | — | +2.9% | A. O. Smith refocuses on North America as boilers lead growth |
| STRL Sterling Infrastructure, Inc. | FY2026 Q3 · Calendar Q4 2026 | +22.3% | -0.4% | Sterling raises 2026 outlook as E-Infrastructure demand accelerates |
| XPO XPO Logistics, Inc. | FY2026 Q3 · Calendar Q4 2026 | — | -3.6% | XPO pairs strong Q3 growth with AI-led efficiency gains |
| APG APi Group Corporation | FY2026 Q3 · Calendar Q4 2026 | — | +6.5% | APi Group posts 23% growth, raises 2026 guidance |
Latest beats and misses
Who reports nextBeat on EPS
- ARFY2026 Q3 · October 28, 2026+22.3% EPS-2.2% move
- INVHFY2026 Q3 · October 28, 2026+49.5% EPS-0.4% move
- AEMFY2026 Q3 · October 28, 2026+5.7% EPS-3.9% move
- ORLYFY2026 Q3 · October 28, 2026+4.3% EPS-2.7% move
- STRLFY2026 Q3 · October 28, 2026+22.3% EPS-0.4% move
- KGCFY2026 Q3 · October 28, 2026+8.7% EPS-6.1% move
Get the HII recap when the next report posts
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-07-31T16:31:33.296166+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-31T16:31:33.293416+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-07-31. For educational purposes only; not investment advice.