Zacks Investment Research·13h ago
3 Reasons Why Embraer (EMBJ) Is a Great Growth StockEmbraer (EMBJ) possesses solid growth attributes, which could help it handily outperform the market.
Embraer's Q2 2026 results reveal a sharp earnings inflection, with total revenue up 60.9% year-over-year to $11.6B and net income surging 160% to $1.1B, fueled by a record $32.1B backlog and operating leverage that improved the efficiency ratio to 7.8%. Howeve...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue momentum accelerated 60.9% year-over-year to $11.6B in Q2 2026, with net income up 160% to $1.1B and an efficiency ratio of 7.8%, though net income margin of 9.5% trails peers and non-interest income dominates at 98.9% of revenue.
Embraer has achieved a record order backlog, reaching $32.1 billion in the first quarter of 2026, with options bringing the total to $50 billion. This backlog has seen a 22% year-over-year increase across segments.
The company is experiencing strong demand across its commercial, executive, and defense markets, supported by significant orders, including major E195-E2 deals. Aircraft deliveries have surged, with a 47% year-over-year increase in Q1 2026.
Management's financial guidance for fiscal year 2026 is considered conservative, suggesting potential for revenue beats and margin expansion. The company expects a 60 basis point growth rate expansion for FY 2026.
Trailing total returns as of 9/22/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 10, 2026 | $1.22+100.0% vs $0.61 | $2.2B+11.1% vs $2.0B |
Q2 2026 May 8, 2026 | $0.16-44.8% vs $0.29 | $1.4B+2.6% vs $1.4B |
Q2 2026 Mar 6, 2026 | $0.83+388.2% vs $0.17 | $2.7B+4.2% vs $2.5B |
Q4 2025 Nov 4, 2025 | $0.64+4.3% vs $0.61 | $2.0B+3.8% vs $1.9B |
Embraer (EMBJ) possesses solid growth attributes, which could help it handily outperform the market.
Investors interested in stocks from the Aerospace - Defense sector have probably already heard of Embraer (EMBJ) and RTX (RTX). But which of these two stocks presents investors with the better value opportunity right now?
•As the Exclusive Fleet Launch Customer, Flexjet Introduces Embraer's Praetor 600E, Combining Industry-Leading Performance with Breakthrough Technology. •Flexjet Jumpstarts Program with 12 Praetor 600Es Expected by Year's End •Delivery Part of Historic $7 Billion Order for 182 Embraer Private Jets Including Praetor 600E, Praetor 500E and Phenom 300E •Continues 20+ Year Legacy of Flexjet as Fleet Launch Customer for Embraer's Most Innovative Offerings •As the Exclusive Fleet Launch Customer, Flexjet Introduces Embraer's Praetor 600E, Combining Industry-Leading Performance with Breakthrough Technology. •Flexjet Jumpstarts Program with 12 Praetor 600Es Expected by Year's End •Delivery Part of Historic $7 Billion Order for 182 Embraer Private Jets Including Praetor 600E, Praetor 500E and Phenom 300E •Continues 20+ Year Legacy of Flexjet as Fleet Launch Customer for Embraer's Most Innovative Offerings
Here is how Embraer (EMBJ) and Elbit Systems (ESLT) have performed compared to their sector so far this year.
Benchmark EMBJ against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Embraer S.A. (EMBJ)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $77.02 | $13.71B | 37.40 | 5.96% | 4.64% | 9.27% | 0.18% | |
| $201.15 | $158.98B | 81.11 | 34.5% | 2.59% | 104.66% | — | |
| $1109.65 | $62.07B | 34.59 | 11.22% | 21.28% | — | — | |
| $276.10 | $10.88B | 17.94 | 8.23% | 5.01% | 12.89% | — | |
| $79.41 | $13.66B | 15.54 | 8.01% | 6.12% | 11.93% | — | |
| $48.59 | $9.11B | 373.77 | 18.52% | 2.03% | 1.14% | — |
Embraer S.A. (EMBJ) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Get notified when EMBJ posts new earnings or crosses analyst targets
Free. No account needed. Unsubscribe any time.
Embraer S.A. (EMBJ) stock FAQ — growth, dividends, profitability & financials explained
Embraer S.A. (EMBJ) grew revenue by 6.0% over the past year. This is steady growth.
Yes, Embraer S.A. (EMBJ) is profitable, generating $2.36B in net income for fiscal year 2025 (4.6% net margin).
Yes, Embraer S.A. (EMBJ) pays a dividend with a yield of 0.18%. This makes it attractive for income-focused investors.
Embraer S.A. (EMBJ) has a return on equity (ROE) of 9.3%. This is below average, suggesting room for improvement.
Embraer S.A. (EMBJ) has a net interest margin (NIM) of -0.6%. NIM has been under pressure due to interest rate environment.
Embraer S.A. (EMBJ) has an efficiency ratio of 9.5%. This is excellent, indicating strong cost control.
