AeroVironment Reports $67.4 Million Loss Amid Earnings Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 20 Jan 26
AeroVironment's stock fell by 12.85% after the company reported a significant earnings miss, with Q2 earnings per share at only $0.44, well below the consensus estimate of $0.80.
The company's gross margin collapsed from 43% to 20.9%, primarily due to soaring costs, leading to a quarterly loss of $67.4 million compared to a profit of $21.2 million last year. This financial pressure raises concerns about investor confidence and future performance, contributing to the stock's decline.
The substantial loss and margin issues highlight the challenges AeroVironment faces, potentially impacting its market position and investor sentiment moving forward.
Analyst Views on AVAV
Wall Street analysts forecast AVAV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVAV is 387.00 USD with a low forecast of 285.00 USD and a high forecast of 450.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 293.220
Low
285.00
Averages
387.00
High
450.00
Current: 293.220
Low
285.00
Averages
387.00
High
450.00
About AVAV
AeroVironment, Inc. is a defense technology provider delivering integrated capabilities across air, land, sea, space, and cyber. The Company develops and deploys autonomous systems, precision strike systems, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities. The Company’s segments include Autonomous Systems (AxS) and Space, Cyber, and Directed Energy (SCDE). The AxS segment focuses on the design, development, production, delivery, and support of intelligent, multi-domain robotic systems, including uncrewed aircraft systems (UAS) and ground robot systems. It includes the Company’s former Uncrewed Systems, Loitering Munitions Systems, and MacCready Works segments as well as Radio Frequency and Kinetic Counter-UAS Electronic Warfare Systems and others. The SCDE segment focuses on advanced technologies in the space domain providing space-based and ground-based platforms, cyber capabilities, and directed energy systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
