AeroVironment (NASDAQ:AVAV) Announces Earnings Results

AeroVironment (NASDAQ:AVAV) posted its earnings results on Tuesday. The aerospace company reported $0.64 EPS for the quarter, missing the consensus estimate of $0.68 by ($0.04), FiscalAI reports. AeroVironment had a positive return on equity of 3.26% and a negative net margin of 13.93%.The firm had revenue of $408.05 million during the quarter, compared to the consensus estimate of $487.94 million. During the same quarter last year, the company posted $0.30 EPS. AeroVironment’s revenue for the quarter was up 143.4% on a year-over-year basis. AeroVironment updated its FY 2026 guidance to 2.750-3.100 EPS.

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

• The company missed Q3 expectations due to government funding delays and a stop-work/termination on the SCAR/Badger program, took a $151 million non‑cash goodwill impairment, and lowered full‑year guidance to $1.85B–$1.95B revenue and $265M–$285M adjusted EBITDA.
• Order momentum remains strong with a $1.1 billion funded backlog, ~$3 billion unfunded backlog (including SCAR), $4.6 billion of year‑to‑date awards, and management expects a record fourth quarter and a solid start to FY2027.
• Management is accelerating production capacity — building a 140,000 sq ft Salt Lake City plant (target ~1 year) capable of >$2B annual Switchblade production and planning multi‑fold ramps for the Titan counter‑UAS family — supporting higher volume and margin expansion.
• AV is pivoting the terminated SCAR effort and several BlueHalo programs (e.g., LOCUST, laser comms, laser gunsights) toward commercial, firm‑fixed‑price offerings to scale manufacturing and improve long‑term profitability, but timing and near‑term revenue impact remain uncertain.

AeroVironment Price Performance

Shares of NASDAQ:AVAV traded up $4.84 during trading hours on Monday, hitting $211.91. 1,248,578 shares of the company’s stock traded hands, compared to its average volume of 1,980,629. The company’s fifty day simple moving average is $281.00 and its two-hundred day simple moving average is $292.52. The company has a market cap of $10.58 billion, a price-to-earnings ratio of -48.83, a price-to-earnings-growth ratio of 3.61 and a beta of 1.26. The company has a debt-to-equity ratio of 0.17, a quick ratio of 4.54 and a current ratio of 5.51. AeroVironment has a 52 week low of $102.25 and a 52 week high of $417.86.

Insider Activity at AeroVironment

In other news, CAO Brian Charles Shackley sold 200 shares of the firm’s stock in a transaction on Tuesday, December 30th. The stock was sold at an average price of $250.92, for a total transaction of $50,184.00. Following the completion of the sale, the chief accounting officer directly owned 5,994 shares of the company’s stock, valued at $1,504,014.48. This trade represents a 3.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Kevin Patrick Mcdonnell sold 396 shares of AeroVironment stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $224.55, for a total value of $88,921.80. Following the completion of the transaction, the chief financial officer owned 16,026 shares in the company, valued at $3,598,638.30. The trade was a 2.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 4,474 shares of company stock valued at $1,390,404 over the last ninety days. Insiders own 0.81% of the company’s stock.

Hedge Funds Weigh In On AeroVironment

Hedge funds and other institutional investors have recently modified their holdings of the stock. Marshall Wace LLP raised its stake in AeroVironment by 4,770.1% during the 4th quarter. Marshall Wace LLP now owns 260,207 shares of the aerospace company’s stock valued at $62,941,000 after purchasing an additional 254,864 shares during the period. Franklin Resources Inc. raised its holdings in shares of AeroVironment by 3,880.9% during the third quarter. Franklin Resources Inc. now owns 206,607 shares of the aerospace company’s stock worth $65,058,000 after acquiring an additional 201,417 shares in the last quarter. Bank of America Corp DE increased its position in AeroVironment by 2,668.1% in the 3rd quarter. Bank of America Corp DE now owns 148,927 shares of the aerospace company’s stock worth $46,896,000 after purchasing an additional 154,726 shares during the last quarter. Renaissance Technologies LLC acquired a new stake in shares of AeroVironment during the 4th quarter valued at about $27,299,000. Finally, Northern Trust Corp grew its stake in shares of AeroVironment by 30.7% in the 3rd quarter. Northern Trust Corp now owns 380,899 shares of the aerospace company’s stock valued at $119,941,000 after buying an additional 89,503 shares in the last quarter. Institutional investors and hedge funds own 86.38% of the company’s stock.

Analysts Set New Price Targets

AVAV has been the subject of a number of recent analyst reports. BNP Paribas Exane started coverage on AeroVironment in a report on Tuesday, November 18th. They issued an “outperform” rating and a $355.00 price objective for the company. KeyCorp decreased their price target on AeroVironment from $330.00 to $295.00 and set an “overweight” rating for the company in a research note on Wednesday, March 11th. Piper Sandler lowered their price target on AeroVironment from $391.00 to $290.00 and set an “overweight” rating on the stock in a report on Tuesday, March 3rd. Canaccord Genuity Group cut their price objective on shares of AeroVironment from $330.00 to $300.00 and set a “buy” rating on the stock in a research note on Thursday. Finally, Weiss Ratings lowered shares of AeroVironment from a “hold (c-)” rating to a “sell (d)” rating in a research report on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, AeroVironment currently has a consensus rating of “Moderate Buy” and a consensus price target of $318.78.

AeroVironment Company Profile

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.