AeroVironment Reports Missed Earnings and Revenue, Shares Drop 9%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AVAV?
Source: seekingalpha
- Disappointing Earnings: AeroVironment reported first-quarter revenue of $408 million, missing Wall Street's expectation of $476 million, with adjusted earnings of $0.64 per share falling short of the $0.69 estimate, indicating significant market pressures on the company.
- Widening Operating Loss: The company posted an operating loss of $179 million for the third quarter, a stark increase from a loss of $3.1 million a year earlier, primarily due to a $151.3 million goodwill impairment in its space division, highlighting increased execution risks.
- Record Backlog Growth: As of January 31, AeroVironment's funded backlog reached a record $1.1 billion, up from $726.6 million at the end of April, demonstrating strong market demand despite the downward revision of future revenue expectations.
- Revised Outlook: The company lowered its fiscal 2026 revenue forecast to between $1.85 billion and $1.95 billion, down from the previous range of $1.95 billion to $2.0 billion, while anticipating a net loss of $218 million to $201 million, reflecting concerns over future profitability.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AVAV?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AVAV
Wall Street analysts forecast AVAV stock price to rise
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 227.290
Low
315.00
Averages
390.75
High
450.00
Current: 227.290
Low
315.00
Averages
390.75
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.
AeroVironment Reports Missed Earnings and Revenue, Shares Drop 9%
- Disappointing Earnings: AeroVironment reported first-quarter revenue of $408 million, missing Wall Street's expectation of $476 million, with adjusted earnings of $0.64 per share falling short of the $0.69 estimate, indicating significant market pressures on the company.
- Widening Operating Loss: The company posted an operating loss of $179 million for the third quarter, a stark increase from a loss of $3.1 million a year earlier, primarily due to a $151.3 million goodwill impairment in its space division, highlighting increased execution risks.
- Record Backlog Growth: As of January 31, AeroVironment's funded backlog reached a record $1.1 billion, up from $726.6 million at the end of April, demonstrating strong market demand despite the downward revision of future revenue expectations.
- Revised Outlook: The company lowered its fiscal 2026 revenue forecast to between $1.85 billion and $1.95 billion, down from the previous range of $1.95 billion to $2.0 billion, while anticipating a net loss of $218 million to $201 million, reflecting concerns over future profitability.
See More
AVAV Reports $156.6 Million Net Loss in Q3 Fiscal 2026
- Poor Financial Performance: AVAV reported a net loss of $156.6 million for Q3 of fiscal 2026, translating to a diluted loss of $3.15 per share, which is a significant increase from a loss of $1.8 million in the same period last year, indicating mounting financial pressure and declining market confidence.
- Revenue Misses Expectations: The company generated $408 million in revenue for the third quarter, falling short of analyst expectations of $475.65 million, although this represents a 143% increase from $167.6 million in Q3 of fiscal 2025, highlighting strong growth in product and service sales but failing to meet market forecasts.
- Business Adjustments Impact: The CEO noted that revenue timing and adjustments in the Space business negatively impacted third-quarter results, particularly due to the U.S. Space Force's decision to reopen competition for the Satellite Communications Augmentation Resource program, significantly affecting the company's backlog.
- Gross Margin Improvement: Despite the losses, AVAV's gross margin reached $98.8 million in Q3, a 56% increase from $63.2 million in the same quarter last year, indicating enhanced profitability in both product and service segments, potentially laying the groundwork for future financial recovery.
See More
AeroVironment Q4 Preview: $1.4B Problem
- Earnings Preview Miss: AeroVironment's projected non-GAAP EPS of $0.64 for Q4 falls short by $0.05, indicating significant pressure on profitability that could undermine investor confidence.
- Revenue Shortfall: The anticipated revenue of $408.05 million is $67.6 million below analyst expectations, which may adversely affect the company's liquidity and future investment plans.
- Negative Market Reaction: The disappointing earnings forecast could lead to downward pressure on AeroVironment's stock price, prompting investors to closely monitor how the company addresses its current financial challenges to restore market confidence.
- Uncertain Industry Outlook: Despite the substantial potential in the drone and laser technology markets, AeroVironment's performance does not reflect this growth trend, suggesting a need for a reassessment of its market strategy to adapt to industry changes.
See More
AeroVironment Q3 Earnings Miss Expectations
- Earnings Miss: AeroVironment reported a Q3 non-GAAP EPS of $0.64, missing expectations by $0.05, indicating pressure on profitability that could undermine investor confidence.
- Revenue Growth Below Expectations: The company achieved revenue of $408.05 million in Q3, a 143.5% year-over-year increase, yet fell short of market expectations by $67.6 million, reflecting challenges from intensified market competition and demand fluctuations.
- Fiscal 2026 Outlook Downgraded: AeroVironment now anticipates fiscal year 2026 revenue between $1.85 billion and $1.95 billion, below the consensus of $1.96 billion, signaling a cautious outlook on future growth.
- Increased Net Loss Projections: The company expects a net loss between $218 million and $201 million, with diluted loss per share projected between $4.44 and $4.10, highlighting the financial pressures faced during its expansion efforts.
See More
AeroVironment Reports Earnings Miss and Revenue Guidance Cut
- Earnings Performance: AeroVironment reported quarterly earnings of 64 cents per share, missing the consensus estimate of 69 cents, indicating pressure on profitability that may affect investor confidence.
- Revenue Shortfall: The quarterly revenue of $408.05 million fell short of the Street estimate of $475.63 million by 14.21%, highlighting challenges in sales growth for the company.
- Orders and Backlog: Despite the revenue miss, AeroVironment achieved bookings of $2.1 billion and a funded backlog of $1.1 billion, significantly up from $726.6 million year-over-year, indicating strong future growth potential.
- Outlook Adjustment: The company lowered its fiscal 2026 adjusted EPS guidance to a range of $2.75 to $3.10, below the analyst estimate of $3.31, reflecting a cautious outlook on future performance.
See More
AeroVironment Faces Securities Fraud Investigation Amidst Poor Earnings
- Earnings Miss: AeroVironment reported earnings per share of only $0.44 for Q2 of fiscal 2026, significantly below the consensus estimate of $0.80, resulting in a major setback in financial performance that undermines investor confidence.
- Plummeting Gross Margins: The company's gross margins fell sharply from 43% in the prior year to 20.9%, with cost of goods sold surging to 79% of revenue, indicating severe cost control issues that could lead to ongoing profitability challenges.
- Stock Price Collapse: Following the earnings report, AeroVironment's stock price plummeted by $36.17, or 12.85%, on December 10, 2025, reflecting strong market concerns regarding its financial health.
- Downgrade Risks: On March 2, 2026, Raymond James downgraded AeroVironment from Strong Buy to Underperform, primarily due to uncertainties surrounding the U.S. Space Force's SCAR program, which poses significant risks to future revenue streams.
See More
AeroVironment Reports Missed Earnings and Revenue, Shares Drop 9%
- Disappointing Earnings: AeroVironment reported first-quarter revenue of $408 million, missing Wall Street's expectation of $476 million, with adjusted earnings of $0.64 per share falling short of the $0.69 estimate, indicating significant market pressures on the company.
- Widening Operating Loss: The company posted an operating loss of $179 million for the third quarter, a stark increase from a loss of $3.1 million a year earlier, primarily due to a $151.3 million goodwill impairment in its space division, highlighting increased execution risks.
- Record Backlog Growth: As of January 31, AeroVironment's funded backlog reached a record $1.1 billion, up from $726.6 million at the end of April, demonstrating strong market demand despite the downward revision of future revenue expectations.
- Revised Outlook: The company lowered its fiscal 2026 revenue forecast to between $1.85 billion and $1.95 billion, down from the previous range of $1.95 billion to $2.0 billion, while anticipating a net loss of $218 million to $201 million, reflecting concerns over future profitability.
See More
AVAV Reports $156.6 Million Net Loss in Q3 Fiscal 2026
- Poor Financial Performance: AVAV reported a net loss of $156.6 million for Q3 of fiscal 2026, translating to a diluted loss of $3.15 per share, which is a significant increase from a loss of $1.8 million in the same period last year, indicating mounting financial pressure and declining market confidence.
- Revenue Misses Expectations: The company generated $408 million in revenue for the third quarter, falling short of analyst expectations of $475.65 million, although this represents a 143% increase from $167.6 million in Q3 of fiscal 2025, highlighting strong growth in product and service sales but failing to meet market forecasts.
- Business Adjustments Impact: The CEO noted that revenue timing and adjustments in the Space business negatively impacted third-quarter results, particularly due to the U.S. Space Force's decision to reopen competition for the Satellite Communications Augmentation Resource program, significantly affecting the company's backlog.
- Gross Margin Improvement: Despite the losses, AVAV's gross margin reached $98.8 million in Q3, a 56% increase from $63.2 million in the same quarter last year, indicating enhanced profitability in both product and service segments, potentially laying the groundwork for future financial recovery.
See More
AeroVironment Q4 Preview: $1.4B Problem
- Earnings Preview Miss: AeroVironment's projected non-GAAP EPS of $0.64 for Q4 falls short by $0.05, indicating significant pressure on profitability that could undermine investor confidence.
- Revenue Shortfall: The anticipated revenue of $408.05 million is $67.6 million below analyst expectations, which may adversely affect the company's liquidity and future investment plans.
- Negative Market Reaction: The disappointing earnings forecast could lead to downward pressure on AeroVironment's stock price, prompting investors to closely monitor how the company addresses its current financial challenges to restore market confidence.
- Uncertain Industry Outlook: Despite the substantial potential in the drone and laser technology markets, AeroVironment's performance does not reflect this growth trend, suggesting a need for a reassessment of its market strategy to adapt to industry changes.
See More
AeroVironment Q3 Earnings Miss Expectations
- Earnings Miss: AeroVironment reported a Q3 non-GAAP EPS of $0.64, missing expectations by $0.05, indicating pressure on profitability that could undermine investor confidence.
- Revenue Growth Below Expectations: The company achieved revenue of $408.05 million in Q3, a 143.5% year-over-year increase, yet fell short of market expectations by $67.6 million, reflecting challenges from intensified market competition and demand fluctuations.
- Fiscal 2026 Outlook Downgraded: AeroVironment now anticipates fiscal year 2026 revenue between $1.85 billion and $1.95 billion, below the consensus of $1.96 billion, signaling a cautious outlook on future growth.
- Increased Net Loss Projections: The company expects a net loss between $218 million and $201 million, with diluted loss per share projected between $4.44 and $4.10, highlighting the financial pressures faced during its expansion efforts.
See More
AeroVironment Reports Earnings Miss and Revenue Guidance Cut
- Earnings Performance: AeroVironment reported quarterly earnings of 64 cents per share, missing the consensus estimate of 69 cents, indicating pressure on profitability that may affect investor confidence.
- Revenue Shortfall: The quarterly revenue of $408.05 million fell short of the Street estimate of $475.63 million by 14.21%, highlighting challenges in sales growth for the company.
- Orders and Backlog: Despite the revenue miss, AeroVironment achieved bookings of $2.1 billion and a funded backlog of $1.1 billion, significantly up from $726.6 million year-over-year, indicating strong future growth potential.
- Outlook Adjustment: The company lowered its fiscal 2026 adjusted EPS guidance to a range of $2.75 to $3.10, below the analyst estimate of $3.31, reflecting a cautious outlook on future performance.
See More
AeroVironment Faces Securities Fraud Investigation Amidst Poor Earnings
- Earnings Miss: AeroVironment reported earnings per share of only $0.44 for Q2 of fiscal 2026, significantly below the consensus estimate of $0.80, resulting in a major setback in financial performance that undermines investor confidence.
- Plummeting Gross Margins: The company's gross margins fell sharply from 43% in the prior year to 20.9%, with cost of goods sold surging to 79% of revenue, indicating severe cost control issues that could lead to ongoing profitability challenges.
- Stock Price Collapse: Following the earnings report, AeroVironment's stock price plummeted by $36.17, or 12.85%, on December 10, 2025, reflecting strong market concerns regarding its financial health.
- Downgrade Risks: On March 2, 2026, Raymond James downgraded AeroVironment from Strong Buy to Underperform, primarily due to uncertainties surrounding the U.S. Space Force's SCAR program, which poses significant risks to future revenue streams.
See More
