NEW YORK, June 30, 2026, 04:13 EDT
- AeroVironment was quoted up 19.7% before the bell after a Q4 revenue and adjusted EPS beat.
- BlueHalo and ESAero supplied about 44% of Q4 revenue by a simple company-data calculation.
- Fiscal 2027 adjusted EPS guidance sits below the current $3.84 analyst estimate.
- The stock’s Russell label changed: out of Russell 2000, into Russell 1000 Value and Russell Midcap Value.
Shares of AeroVironment, Inc. NASDAQ:AVAV were quoted at $166.40 in premarket trade, up $27.40, or 19.7%, from Monday’s $139.00 close, after the drone and defense-technology company beat fourth-quarter estimates. MarketWatch listed the quote as delayed at 4:05 a.m. EDT.
The price move would add roughly $1.37 billion to equity value, using MarketWatch’s 49.93 million shares outstanding. Even at the premarket quote, the stock was still about 60% below its 52-week high of $417.86.
The headline beat was big. AeroVironment said fiscal fourth-quarter revenue rose 133% to $641.6 million, while non-GAAP EPS came in at $1.84. FactSet estimates cited by MarketScreener were $556.0 million for revenue and $1.46 for adjusted EPS.
| Q4 metric | Fiscal Q4 2026 | Fiscal Q4 2025 / estimate | Change |
|---|---|---|---|
| Revenue | $641.6 mln | $275.1 mln | +133% |
| FactSet revenue estimate | $641.6 mln actual | $556.0 mln est. | +15.4% vs est. |
| Non-GAAP EPS | $1.84 | $1.46 est. | +26.0% vs est. |
| Non-GAAP adjusted EBITDA | $140.1 mln | $61.6 mln | +127% |
| Funded backlog | $1.2 bln | $726.6 mln | +65% |
The less clean part is mix. AeroVironment said the BlueHalo and Empirical Systems Aerospace deals contributed $282.3 million of Q4 revenue. That is 44.0% of the quarter. Sales not attributed to those two acquisitions were about $359.3 million, up about 31% from the whole company’s year-earlier revenue.
Chief Executive Wahid Nawabi said the company is focused on “strengthening our supply chain” and sees “rising global demand” across drones, counter-drone systems, space and other defense technology. He also said fiscal 2026 was the strongest financial year in AeroVironment’s history. AeroVironment, Inc.
The margin split is the part investors may fight over once regular trading opens. Product gross margin improved, helped by scale. Contract services, swollen by BlueHalo, lost money at the gross-margin line in the quarter. AeroVironment said total gross margin fell to 32% from 36%, due mainly to more service revenue and higher amortization and purchase-accounting costs.
| Q4 line item | Revenue | Gross margin dollars | Gross margin rate |
|---|---|---|---|
| Product sales, FY2026 | $499.0 mln | $211.8 mln | 42.4% |
| Product sales, FY2025 | $242.2 mln | $91.5 mln | 37.8% |
| Contract services, FY2026 | $142.7 mln | -$9.2 mln | -6.4% |
| Contract services, FY2025 | $32.8 mln | $8.9 mln | 27.0% |
For fiscal 2027, AeroVironment guided to revenue of $2.125 billion to $2.225 billion. The midpoint is about 10% above fiscal 2026 revenue of $1.98 billion, a much slower rate after a year when revenue more than doubled. Funded backlog of $1.2 billion covers about 55% of the new revenue midpoint.
The earnings guide was cooler. AeroVironment forecast fiscal 2027 non-GAAP EPS of $3.02 to $3.34, below MarketWatch’s current-year analyst estimate of $3.84. The top end of company guidance is still about 13% below that estimate.
The stock also changed index homes just before the earnings release. S&P Capital IQ notices on MarketScreener showed AeroVironment dropped from the Russell 2000 Index and was added to the Russell 1000 Value Benchmark and Russell Midcap Value Benchmark. LSEG said the June Russell reset took effect after the June 26 close and that about $12.2 trillion in investor assets are benchmarked to or invested in products based on Russell U.S. indexes.
| Market or index fact | Latest data |
|---|---|
| Premarket quote | $166.40 |
| Change from Monday close | +19.7% |
| Monday regular close | $139.00 |
| 52-week range | $135.20-$417.86 |
| Russell 2000 | Removed |
| Russell 1000 Value | Added |
| Russell Midcap Value | Added |
There is still a GAAP drag behind the adjusted numbers. AeroVironment reported Q4 net income of $63.2 million, but full-year net loss was $265.1 million. Its fiscal 2026 results included a $240.7 million goodwill impairment and $51.4 million of Q4 intangible amortization and other purchase-accounting costs.
Analyst positioning remains positive but less euphoric than the price targets imply. MarketWatch listed 19 ratings, with 16 buys, one overweight and two holds, while the average target price was $277.56. Its FY2027 EPS estimate trend showed $3.84 now, down from $4.02 one month earlier.
