Standex International Q3 earnings rise but shares fall on valuation and revenue concerns

Standex International reported solid Q3 FY2026 results with adjusted EPS and net profits growth, helped by acquisitions and strong Electronics and Aerospace & Defense segments. However, shares dropped nearly 9% due to a slight revenue miss and valuation worries, despite a one-time $56.8 million gain from a business sale boosting headline earnings. The Scientific segment underperformed due to NIH funding cuts. The analyst maintains a "Hold" rating, noting the stock remains expensive on an absolute basis despite reasonable relative valuation, advising caution for investors.