Zacks upgrades Embraer stock to Strong Buy rating

Embraer stock received a Strong Buy upgrade from Zacks Research, according to MarketBeat. The analyst action follows a second quarter in which Embraer reported record revenue, a record backlog and higher profitability guidance.

Revenue growth meets record backlog

Embraer's net revenue increased 23.00 percent year over year to USD 2.20 billion in the second quarter of 2026, according to Yahoo Finance. Adjusted EBIT reached USD 297.00 million, with a 13.30 percent margin, while adjusted net income was USD 290.00 million in the quarter.

The company-wide backlog reached USD 34.50 billion in the second quarter, up 16.00 percent year over year, according to Yahoo Finance. That backlog provides a stronger operating base than the revenue figure alone because it links current production to future deliveries across commercial aviation, executive aviation, defense and services.

Guidance points to higher margins

Embraer raised its 2026 adjusted EBIT margin guidance to 10.00 percent-10.60 percent and lifted adjusted free cash flow guidance to USD 400.00 million or higher, as reported by Yahoo Finance. The guidance increase gives the Zacks upgrade a measurable operating backdrop rather than relying only on sentiment.

Investors still need to separate recurring performance from one-time effects. Embraer recorded a USD 68.00 million extraordinary tax credit and USD 8.00 million in U.S. import tariffs during the second quarter, according to Yahoo Finance. The adjusted figures therefore show both operating progress and temporary financial effects.

NYSE quote remains below yearly high

The NYSE quote was USD 73.78 at 11:29 a.m. EDT on October 1, 2026, down 2.04 percent from the prior close of USD 75.32. The stock's 52-week range was USD 53.56 to USD 80.75, putting the latest quote USD 6.97 below the high and USD 20.22 above the low.

Market capitalization stood at USD 13.5 billion on October 1, 2026. The combination of a 16.00 percent backlog increase, 23.00 percent revenue growth and higher margin guidance leaves execution and the quality of future earnings as the central valuation questions.