CAE Inc

CAE

Market cap $9.54B

Investors interested in stocks from the Aerospace - Defense Equipment sector have probably already heard of CAE (CAE) and AeroVironment (AVAV). But which of these two companies is the best option for those looking for undervalued stocks?

CAE Inc. (CAE:CA) Q3 2026 Earnings Call Transcript

Although the revenue and EPS for CAE (CAE) give a sense of how its business performed in the quarter ended December 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

CAE (CAE) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.21 per share a year ago.

• Revenue of $1,252.1 million vs. $1,223.4 million in prior year • Earnings per share (EPS) of $0.34 vs.

Beyond analysts' top-and-bottom-line estimates for CAE (CAE), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended December 2025.

Here are four defense stocks that are expected to post an earnings beat this reporting cycle.

CAE (CAE) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

CAE offers a compelling re-entry point after a 10% pullback, with 23% upside to 2027 price target. Recent share weakness is driven by US-Canada friction over aircraft certification, not by fundamental deterioration in CAE's outlook. CAE's margin profile and leverage are set to improve as legacy defense contracts are replaced by higher-margin opportunities.

MONTREAL, Jan. 29, 2026 /PRNewswire/ - (NYSE: CAE); (TSX: CAE) – CAE will release its third quarter financial results on Thursday, February 12, 2026, after market close. Analysts and institutional investors are invited to attend a conference call on Friday, February 13, at 8:00 a.m.