NEW YORK, June 30, 2026, 17:04 (EDT)
- AeroVironment ended the day up 18.8% at $165.07. Shares opened at $176.50 and traded as high as that before slipping to close 7.5% below the session peak.
- AeroVironment’s funded backlog stands at $1.2 billion, which is roughly 55% of the midpoint in its fiscal 2027 revenue forecast.
- Acquisitions drove the fourth-quarter results, with BlueHalo and Empirical Systems Aerospace bringing in $282.3 million in revenue for the period.
AeroVironment, Inc. NASDAQ:AVAV surged Tuesday after posting strong fiscal Q4 numbers, but action was choppy. The drone and defense stock ended at $165.07, up 18.76%. Shares opened at $176.50, hit $178.50 during the day, then eased back. Volume was heavy at 7.98 million shares, 5.4 times the norm. After hours, the stock moved to $165.55.
| Tuesday close | Level/price | Change |
|---|---|---|
| AeroVironment NASDAQ:AVAV | $165.07 | up 18.76% |
| Nasdaq Composite | 26,213.72 | added 1.5% |
| S&P 500 | 7,499.36 | rose 0.8% |
| Dow Jones Industrial Average | 52,319.20 | gained 0.3% |
| Russell 2000 | 3,024.37 | increased 0.5% |
The stock outperformed the indexes by a lot, but closing under the open tells the story. Buyers bought the earnings beat, then stepped back after seeing gross margin, the latest acquisition, and profit targets for fiscal 2027. AP said the broader U.S. market climbed, with the Nasdaq gaining 1.5% and the S&P 500 adding 0.8%.
AeroVironment posted Q4 revenue of $641.6 million, up 133%. For the full year, revenue climbed 141% to $1.98 billion. Non-GAAP EPS came in at $1.84, topping the $1.47 estimate tracked by Google Finance. Revenue also beat the $559.09 million estimate.
There’s also a mix problem. Product sales were still the main driver in the quarter. Contract services moved to a gross loss. Total gross margin dropped to 32%, down from 36%.
| Q4 line item | Fiscal 2026 | Fiscal 2025 | Investor read |
|---|---|---|---|
| Revenue | $641.6 mln | $275.1 mln | Up 133% |
| Product sales | $499.0 mln | $242.2 mln | Made up 78% of Q4 revenue, lower than 88% |
| Contract services gross margin | -$9.2 mln | $8.9 mln | Margin reversed, down to -6.4% from 27.0% |
| Total gross margin | 32% | 36% | Dropped 4 points |
| Acquisition revenue contribution | $282.3 mln | n/a | 44% of Q4 revenue |
The fiscal 2027 outlook makes investors pay up for planned growth before all the deals are locked in. AeroVironment is guiding for revenue between $2.125 billion and $2.225 billion. The $1.2 billion funded backlog covers about 55% of the $2.175 billion midpoint. GAAP EPS is guided at 16 to 48 cents, and non-GAAP EPS at $3.02 to $3.34.
CEO Wahid Nawabi said fiscal 2026 is set to be the company’s “strongest financial performance.” Nawabi said AeroVironment can “deliver at speed.” He said management is focused on “strengthening our supply chain.” AeroVironment, Inc.
Analyst calls leaned positive, but hardly unanimous. Google Finance showed eight buys and one hold out of nine analysts over three months, with the average 12-month target at $217.63. UBS’s Gavin Parsons stuck with Hold on Tuesday, setting his target at $166, right around the last close. Wedbush’s Sam Brandeis launched coverage with Buy and a $250 target.
There’s another risk off the books. Bleichmar Fonti & Auld said Tuesday that investors have a securities fraud class action pending in the U.S. District Court for the Eastern District of Virginia over comments about the Space Force SCAR program. The lead plaintiff deadline is July 27. The complaint includes only allegations.
AeroVironment will hold its investor day in New York on July 8. Management is set to begin presenting at 8:30 a.m. EDT.
