AeroVironment (NASDAQ:AVAV) Posts Quarterly Earnings Results, Misses Estimates By $0.08 EPS

AeroVironment (NASDAQ:AVAV) released its quarterly earnings data on Tuesday. The aerospace company reported $0.64 earnings per share for the quarter, missing the consensus estimate of $0.72 by ($0.08), FiscalAI reports. AeroVironment had a negative net margin of 5.08% and a positive return on equity of 3.42%. The firm had revenue of $408.05 million during the quarter, compared to the consensus estimate of $487.94 million. During the same quarter in the previous year, the firm earned $0.30 earnings per share. The business’s revenue was up 143.4% compared to the same quarter last year. 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 AVAV stock opened at $221.57 on Wednesday. AeroVironment has a fifty-two week low of $102.25 and a fifty-two week high of $417.86. The company has a debt-to-equity ratio of 0.16, a quick ratio of 4.29 and a current ratio of 5.08. The firm has a market capitalization of $11.06 billion, a price-to-earnings ratio of -177.26, a PEG ratio of 3.60 and a beta of 1.26. The stock’s 50-day simple moving average is $283.26 and its 200-day simple moving average is $293.28.

Wall Street Analyst Weigh In

Several research firms have issued reports on AVAV. Weiss Ratings lowered AeroVironment from a “hold (c-)” rating to a “sell (d)” rating in a research note on Monday, February 9th. Cantor Fitzgerald decreased their price target on shares of AeroVironment from $335.00 to $315.00 and set an “overweight” rating for the company in a research report on Wednesday, December 10th. KeyCorp raised their price target on shares of AeroVironment from $285.00 to $330.00 and gave the company an “overweight” rating in a report on Wednesday, January 28th. BNP Paribas Exane began coverage on shares of AeroVironment in a research report on Tuesday, November 18th. They issued an “outperform” rating and a $355.00 price objective on the stock. Finally, Citizens Jmp reiterated a “market outperform” rating and set a $400.00 price objective on shares of AeroVironment in a research note on Thursday, February 12th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, one has issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, AeroVironment currently has a consensus rating of “Moderate Buy” and an average price target of $348.33.

Trending Headlines about AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Revenue jumped year‑over‑year and management highlighted strategic progress in product lines (counter‑drone, AI sensing). These fundamentals support long‑term demand as militaries increase drone/C‑UAS spending. How Is AeroVironment Expanding Its Counter-Drone Defense Capabilities?
• Neutral Sentiment: Company released the full Q3 presentation and earnings call materials — useful for parsing management commentary on order timing, backlog and SCAR next steps. Q3 Slide Deck / Press Release
• Negative Sentiment: Q3 results: adjusted EPS of $0.64 and revenue of $408.1M missed Wall Street estimates (EPS and revenue). Management cited timing issues that delayed orders — the shortfall and miss vs. consensus drove the initial selloff. AeroVironment Misses Q4 Sales Expectations
• Negative Sentiment: FY26 guidance was cut to $2.75–$3.10 in adjusted EPS (previously $3.40–$3.55) and revenue guidance centered ~ $1.9–$2.0B, both below Street expectations — a clear near‑term negative for sentiment and valuation. AeroVironment Cuts Guidance, Says Timing Issues Hurt Results
• Negative Sentiment: Contract uncertainty: reports cite potential termination or loss of a ~$1.7B Space Force SCAR contract, amplifying revenue visibility concerns and driving downside risk. AVAV Stock Plunges on Q3 Miss and $1.7B Contract Uncertainty
• Negative Sentiment: Analyst reaction: at least one sell‑side rating was cut from strong‑buy to hold after the “reality check,” adding selling pressure. Rating Downgrade Article
• Negative Sentiment: Investor/litigation risk: a law firm (Pomerantz) has opened an investigation, which can increase headline volatility and legal overhangs. Pomerantz Law Firm Investigation

Insider Transactions at AeroVironment

In other AeroVironment news, CAO Brian Charles Shackley sold 200 shares of AeroVironment stock in a transaction dated 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 owned 5,994 shares of the company’s stock, valued at approximately $1,504,014.48. The trade was a 3.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Stephen F. Page sold 250 shares of the business’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $300.00, for a total value of $75,000.00. Following the sale, the director owned 50,001 shares in the company, valued at approximately $15,000,300. The trade was a 0.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 4,078 shares of company stock worth $1,301,482. Company insiders own 0.81% of the company’s stock.

Institutional Investors Weigh In On AeroVironment

Institutional investors and hedge funds have recently modified their holdings of the company. Ameriprise Financial Inc. boosted its position in AeroVironment by 17.2% in the second quarter. Ameriprise Financial Inc. now owns 504,270 shares of the aerospace company’s stock valued at $143,692,000 after buying an additional 73,963 shares during the last quarter. Alliancebernstein L.P. raised its position in AeroVironment by 7.4% during the 2nd quarter. Alliancebernstein L.P. now owns 477,055 shares of the aerospace company’s stock worth $135,937,000 after buying an additional 32,721 shares during the last quarter. ARK Investment Management LLC raised its position in AeroVironment by 8.2% during the 4th quarter. ARK Investment Management LLC now owns 433,129 shares of the aerospace company’s stock worth $104,770,000 after buying an additional 32,672 shares during the last quarter. Alyeska Investment Group L.P. lifted its stake in AeroVironment by 28.0% during the 4th quarter. Alyeska Investment Group L.P. now owns 389,772 shares of the aerospace company’s stock valued at $94,282,000 after acquiring an additional 85,236 shares during the period. Finally, Northern Trust Corp lifted its stake in AeroVironment by 30.7% during the 3rd quarter. Northern Trust Corp now owns 380,899 shares of the aerospace company’s stock valued at $119,941,000 after acquiring an additional 89,503 shares during the period. Institutional investors and hedge funds own 86.38% of the company’s stock.

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.