Embraer: Stock Tumbles After Earnings, But Disappointing Guidance Hides A Strong Buy

Embraer remains a strong buy despite a 22.6% share price decline and weak 2026 guidance, with a price target of $91.96 implying 49% upside. Recent results show revenue and margin improvements across segments, but EBIT and free cash flow remain pressured by tariffs and a conservative management outlook. 2026 guidance is notably weak, with commercial and executive aviation delivery growth of just 3%-10% and free cash flow guidance lacking clarity, despite a solid $14.5B backlog.