AeroVironment (NASDAQ:AVAV) Issues Earnings Results, Beats Estimates By $0.37 EPS

Posted by Brian Himes on Sep 10th, 2026

AeroVironment (NASDAQ:AVAV – Get Free Report) posted its quarterly earnings results on Wednesday. The aerospace company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.22 by $0.37, Zacks reports. The company had revenue of $480.49 million for the quarter, compared to analyst estimates of $451.95 million. AeroVironment had a negative net margin of 9.00% and a positive return on equity of 3.71%. The firm’s revenue was up 5.7% on a year-over-year basis. During the same period in the prior year, the company earned $0.32 earnings per share. AeroVironment updated its FY 2027 guidance to 3.020-3.340 EPS.

Here are the key takeaways from AeroVironment’s conference call:

Strong first-quarter performance: Revenue reached a record $480 million, bookings were $683 million, adjusted EBITDA was $53 million, and funded backlog rose 37% year over year to a record $1.5 billion.
Counter-UAS momentum accelerated with the nearly $465 million LOCUST directed-energy contract, an initial Titan award under a $500 million IDIQ, and capacity expansions for LOCUST and Freedom Eagle One. Management believes LOCUST could become a more than $500 million annual franchise over time, with international demand potentially comparable to U.S. demand.
The Autonomous Systems segment grew 21% year over year, led by a 71% increase in Uncrewed Aircraft Systems revenue from P550, JUMP 20-X, and Puma, while the P550 LRR award and Switchblade contracts provide additional multiyear growth visibility.
Near-term profitability and cash flow face pressure: SCDE revenue declined 21% year over year following the SCAR contract termination, service gross margin fell to 8% from 13%, and free cash flow was negative $36 million as the company increased capital spending and inventory.
Management reaffirmed fiscal 2027 guidance for revenue of $2.125 billion–$2.225 billion and adjusted EBITDA of $305 million–$325 million, but expects results to be heavily weighted toward the second half; uncertainty over the timing of Congressional budget approval remains a monitored risk.

AeroVironment Stock Down 5.4%

Shares of AVAV opened at $140.80 on Thursday. The company has a debt-to-equity ratio of 0.17, a quick ratio of 3.59 and a current ratio of 4.30. AeroVironment has a one year low of $135.20 and a one year high of $417.86. The stock has a market capitalization of $7.16 billion, a price-to-earnings ratio of -38.26, a PEG ratio of 5.15 and a beta of 1.41. The stock has a 50 day moving average price of $159.17 and a 200 day moving average price of $179.83.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on AVAV shares. BTIG Research reaffirmed a “buy” rating and set a $205.00 price objective on shares of AeroVironment in a research note on Thursday, July 9th. Citigroup restated a “market outperform” rating on shares of AeroVironment in a research report on Thursday. Stifel Nicolaus decreased their price objective on shares of AeroVironment from $315.00 to $220.00 and set a “buy” rating for the company in a research report on Tuesday, June 30th. Piper Sandler lowered their target price on shares of AeroVironment from $248.00 to $235.00 and set an “overweight” rating on the stock in a research note on Thursday, July 9th. Finally, KeyCorp restated an “overweight” rating on shares of AeroVironment in a research report on Tuesday, July 28th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $255.47.

Read Our Latest Stock Report on AVAV

Insiders Place Their Bets

In other AeroVironment news, CAO Brian Shackley sold 205 shares of the firm’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $201.86, for a total value of $41,381.30. Following the transaction, the chief accounting officer owned 7,888 shares in the company, valued at approximately $1,592,271.68. This trade represents a 2.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen Page sold 250 shares of AeroVironment stock in a transaction on Monday, June 15th. The stock was sold at an average price of $174.41, for a total transaction of $43,602.50. Following the sale, the director directly owned 49,001 shares in the company, valued at approximately $8,546,264.41. This trade represents a 0.51% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 705 shares of company stock worth $132,979 in the last 90 days. 0.79% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AeroVironment

Several hedge funds and other institutional investors have recently modified their holdings of the business. National Bank of Canada FI grew its stake in AeroVironment by 230.3% during the 3rd quarter. National Bank of Canada FI now owns 109 shares of the aerospace company’s stock valued at $34,000 after acquiring an additional 76 shares in the last quarter. Banque Cantonale Vaudoise acquired a new position in shares of AeroVironment during the 3rd quarter worth approximately $44,000. EverSource Wealth Advisors LLC boosted its holdings in shares of AeroVironment by 5,200.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 159 shares of the aerospace company’s stock worth $45,000 after purchasing an additional 156 shares during the last quarter. Kemnay Advisory Services Inc. purchased a new stake in shares of AeroVironment in the fourth quarter valued at approximately $40,000. Finally, Kelleher Financial Advisors purchased a new stake in shares of AeroVironment in the third quarter valued at approximately $58,000. 86.38% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

Positive Sentiment: Strong earnings beat: Fiscal Q1 2027 adjusted EPS was $0.59, well above the $0.22 consensus estimate and up from $0.32 a year earlier. Revenue rose 5.7% to a record $480.5 million, exceeding analyst forecasts. AeroVironment Announces Fiscal 2027 First Quarter Results
Positive Sentiment: Backlog and bookings support visibility: Quarterly bookings reached approximately $700 million, producing a 1.4 book-to-bill ratio, while funded backlog climbed 37% year over year to a record $1.5 billion. Management said fiscal 2027 is off to a strong start. AVAV Stock Rebounds After-Hours on Record Sales and $1.5B Backlog
Positive Sentiment: New growth opportunity in directed energy: Investors are responding to AeroVironment’s LOCUST high-energy laser counter-drone system, which management believes could become a major business and offers a low-cost-per-shot solution. The company also received its first international LOCUST order. AeroVironment Says Laser Weapons Could Become a Flagship Franchise
Neutral Sentiment: Full-year outlook remains mixed: Fiscal 2027 EPS guidance of $3.02–$3.34 brackets the roughly $3.21 analyst consensus, while revenue guidance of about $2.1–$2.2 billion is near or slightly below expectations. This limits the impact of the quarterly beat on long-term estimates.
Negative Sentiment: Valuation and execution risks remain: Despite the adjusted-profit beat, AeroVironment posted a GAAP net loss, and investors continue to question whether the company can convert its backlog into profitable growth. The stock’s elevated valuation and recent insider selling may add pressure. A law firm has also announced an investigation into the board, creating an additional overhang. Berger Montague Investigates AeroVironment Board

About AeroVironment

(Get Free Report)

AeroVironment, Inc (NASDAQ:AVAV) is a technology company specializing in unmanned aerial systems (UAS), tactical missiles and precision loitering munitions, electric vehicle charging and scalable energy systems. Headquartered in Monrovia, California, the company develops solutions for defense, public safety and commercial markets. Their offerings include small UAS for intelligence, surveillance and reconnaissance, as well as advanced weapons systems designed to meet the needs of modern military operations.

The company’s unmanned aerial systems portfolio features platforms such as the Raven, Puma and Switchblade series, which are deployed by the U.S.