Did RBC Bearings beat earnings in Q3 FY2026?

Yes. RBC Bearings beat adjusted EPS by 6.3% ($3.04 vs $2.86 expected) and revenue was in-line at $461.6M (+0.3% vs consensus). The Aerospace/Defense segment drove growth with 41.5% YoY revenue increase.

What did RBC Bearings say about backlog?

Backlog surged to $2.1 billion as of December 27, 2025, compared to $1.6B in September and just $0.9B a year ago—a 133% YoY increase driven by defense contract wins.

Did RBC Bearings raise guidance?

RBC guided Q4 FY2026 revenue of $495M-$505M, representing 13-15% YoY growth, with adjusted gross margin of 45.0%-45.25%.

RBC Bearings (RBC)·Q3 2026 Earnings Summary

RBC Bearings Beats EPS as Aerospace Surges 42%, Stock Rallies 6%

February 5, 2026 · by Fintool AI Agent

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RBC Bearings (NYSE: RBC) posted a strong Q3 FY2026 with adjusted EPS of $3.04, beating consensus by 6.3%, while revenue of $461.6 million came in essentially in-line with the $460.4M estimate . The precision bearings manufacturer saw its Aerospace/Defense segment surge 41.5% YoY, driven by robust defense demand and the VACCO acquisition . Industrial grew a more modest 3.1% but management signaled improving trends into calendar 2026 . Shares rallied 6% to new highs on the earnings beat and bullish outlook.

Did RBC Bearings Beat Earnings?

Metric	Q3 FY2026	Consensus	Surprise	Q3 FY2025	YoY Change
Revenue	$461.6M	$460.4M	+0.3%	$394.4M	+17.0%
Adj. EPS	$3.04	$2.86	+6.3%	$2.34	+29.9%
GAAP EPS	$2.13	—	—	$1.82	+17.0%
Adj. EBITDA	$149.6M	—	—	$122.6M	+22.0%
Adj. EBITDA Margin	32.4%	—	—	31.1%	+130 bps

Revenue and EPS estimates from S&P Global. Actuals from company filings .

RBC delivered its 9th consecutive quarter of EPS beats. The VACCO acquisition (closed July 2025) contributed $29.2 million to net sales this quarter .

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What Is Driving the Aerospace/Defense Surge?

The standout story is A&D, which now represents 44% of revenue vs. 36% a year ago:

Segment	Q3 FY2026	Q3 FY2025	YoY Growth
Aerospace/Defense	$202.5M	$143.2M	+41.5%
Industrial	$259.1M	$251.2M	+3.1%
Total	$461.6M	$394.4M	+17.0%

Source: Company filings

The A&D growth reflects:

VACCO acquisition (July 2025): Added $29.2M in Q3 sales
Organic A&D growth: ~20%+ excluding VACCO
Defense contract wins: Driving backlog expansion

Backlog exploded to $2.1 billion as of December 27, 2025—up from $1.6B in September and just $0.9B a year ago, a 133% YoY increase .

What Did Management Guide?

Metric	Q4 FY2026 Guidance	Q4 FY2025 Actual	Implied YoY Growth
Revenue	$495M - $505M	$437.7M	+13% to +15%
Adj. Gross Margin	45.0% - 45.25%	44.2%	+80 to +105 bps
SG&A % of Sales	16.0% - 16.25%	15.9%	~flat

*Source: Company outlook *

Excluding VACCO, organic revenue growth is guided at 6.4% to 8.7% for Q4 .

CEO Dr. Michael J. Hartnett commented:

"We are well-positioned for growth in calendar year 2026 and beyond, given our robust, growing backlog, which has continued to benefit from recent contract wins within the A&D space."

What Changed From Last Quarter?

Metric	Q2 FY2026	Q3 FY2026	Change
Revenue	$455.3M	$461.6M	+1.4%
Adj. Gross Margin	44.9%	45.1%	+20 bps
Adj. EBITDA Margin	32.2%	32.4%	+20 bps
FCF	$71.7M	$99.1M	+38%
Backlog	$1.6B	$2.1B	+31%

The sequential improvement in free cash flow (+38% QoQ) and accelerating backlog (+31% QoQ) are notable. FCF conversion hit 147% vs. 127% a year ago .

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How Did the Stock React?

Timeframe	Price	Change
Pre-earnings close (Feb 4)	$516.78	Near 52-week high
Earnings day close (Feb 5)	$523.94	+6.2%
52-week range	$297.28 - $528.74	+76% from low

Shares rallied on the earnings beat, touching intraday highs of $528.74. The positive reaction reflects:

EPS beat: $3.04 vs. $2.86 expected (+6.3%)
Record backlog: $2.1B with defense contract momentum
Improving industrial outlook: Management bullish on calendar 2026
Conservative guidance: Management signaled Q4 guide is conservative

Margins and Capital Allocation

Metric	Q3 FY2026	Q3 FY2025	Change
Gross Margin (GAAP)	44.3%	44.3%	flat
Adj. Gross Margin	45.1%	44.3%	+80 bps
Operating Margin	22.3%	21.7%	+60 bps
Adj. EBITDA Margin	32.4%	31.1%	+130 bps

*Source: Company filings *

Cash Flow & Balance Sheet:

Metric	9M FY2026	9M FY2025
Cash from Operations	$330.5M	$224.4M
Capital Expenditures	($55.4M)	($35.6M)
Free Cash Flow	$275.1M	$188.8M
Net Debt	~$883M	~$859M

Source: Company filings

The company is investing in capacity expansion while maintaining strong FCF. Debt reduction efforts lowered interest expense to $13M from $14.2M YoY .

Q&A Highlights: What Did Analysts Ask?

Defense Program Exposure:

Dr. Hartnett provided extensive color on defense end markets :

Submarines: "Number one defense priority today" — 66 Virginia-class ships planned (25 commissioned), 12 Columbia-class ships planned
Missiles: Exposure across HIMARS, JDAMs, and hypersonics; hypersonics will go on Columbia-class and Virginia-class submarines
Europe: NATO's 5% GDP initiative driving demand from European ground warfare system builders

"Today, the strength and outlook on the A&D sector can only be described as extremely robust. Clearly, we are at a national inflection point in the commercial aircraft and defense industries."

Boeing/Airbus Production Rates:

Management detailed OEM production expectations :

737: At 38/month → 42 → 50, with objective of 60
787: 6/month → 8/month (significant for one RBC plant)
777X: "Coming into its own" but only a few ships/month in distant future
Airbus: New contract adds ~20% content increase, starting this quarter

One smaller plant has Boeing working off inventory until July; all others are lockstep with Boeing production .

Industrial Outlook:

On FY2027 industrial expectations :

Expecting "high single digits" growth vs. peers guiding "low single digits"
Semiconductor came back "in a significant way" after being "dormant for a long period"
Broad industrial demand strengthened "measurably in late December and continued throughout January"
Opening new service center in Midwest to serve more customers

Space Opportunity:

VACCO has a satellite staples business with potential to "guide the industry" by stocking key components . Sargent Aerospace products are specifically for submarines, while VACCO has both submarine and space applications .

Margin Outlook:

A&D margins (42.2% adjusted in Q3) should continue to "chase up towards industrial margins" (47.4% adjusted), though management doesn't expect them to fully converge .

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Key Risks and Concerns

Industrial segment deceleration: Only +3.1% growth suggests macro softness in traditional industrial end markets
Acquisition integration: VACCO adds revenue but also integration complexity
Valuation: Trading near all-time highs with elevated multiples
Defense budget dependency: Growing A&D concentration increases exposure to government spending

Forward Catalysts

Q4 FY2026 earnings (expected late May 2026): Full-year results and FY2027 outlook
VACCO integration milestones: Synergy realization updates
Defense contract awards: Backlog momentum continuation
Industrial recovery: OEM destocking completion could reaccelerate growth

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Earnings call held February 5, 2026. View full transcript | View 8-K filing