AeroVironment (NASDAQ:AVAV) Releases Earnings Results

AeroVironment (NASDAQ:AVAV) announced its earnings results on Tuesday, March 10th. The aerospace company reported $0.64 earnings per share for the quarter, missing analysts’ consensus estimates 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 company had revenue of $408.05 million during the quarter, compared to the consensus estimate of $487.94 million. During the same period in the prior year, the firm posted $0.30 earnings per share. The company’s revenue 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

AeroVironment stock opened at $215.85 on Thursday. The company has a current ratio of 5.51, a quick ratio of 4.54 and a debt-to-equity ratio of 0.17. The firm has a market capitalization of $10.78 billion, a P/E ratio of -49.73, a PEG ratio of 3.87 and a beta of 1.26. The business has a 50-day moving average of $275.34 and a 200-day moving average of $291.59. AeroVironment has a 1 year low of $102.25 and a 1 year high of $417.86.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. Jefferies Financial Group dropped their price objective on shares of AeroVironment from $390.00 to $305.00 and set a “buy” rating for the company in a research report on Thursday, March 12th. Citigroup reissued a “market outperform” rating on shares of AeroVironment in a research note on Monday, January 12th. UBS Group dropped their target price on AeroVironment from $259.00 to $236.00 and set a “neutral” rating for the company in a research report on Wednesday, March 11th. Zacks Research lowered AeroVironment from a “hold” rating to a “strong sell” rating in a research note on Wednesday, March 4th. Finally, Piper Sandler decreased 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. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, one has given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $318.78.

Insider Activity at AeroVironment

In related news, Director Stephen F. Page sold 250 shares of the business’s stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $212.52, for a total transaction of $53,130.00. Following the completion of the transaction, the director owned 49,751 shares in the company, valued at approximately $10,573,082.52. The trade was a 0.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Kevin Patrick Mcdonnell sold 396 shares of the company’s stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $224.55, for a total transaction of $88,921.80. Following the completion of the sale, the chief financial officer directly owned 16,026 shares of the company’s stock, valued at $3,598,638.30. The trade was a 2.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 4,924 shares of company stock worth $1,486,038 in the last ninety days. Company insiders own 0.81% of the company’s stock.

Institutional Trading of AeroVironment

A number of large investors have recently made changes to their positions in the company. J.W. Cole Advisors Inc. raised its stake in AeroVironment by 3.7% during the 4th quarter. J.W. Cole Advisors Inc. now owns 1,081 shares of the aerospace company’s stock worth $261,000 after buying an additional 39 shares during the period. Parkside Financial Bank & Trust grew its stake in AeroVironment by 29.7% in the fourth quarter. Parkside Financial Bank & Trust now owns 188 shares of the aerospace company’s stock valued at $45,000 after acquiring an additional 43 shares during the period. Vanguard Personalized Indexing Management LLC grew its stake in AeroVironment by 2.3% in the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 2,667 shares of the aerospace company’s stock valued at $645,000 after acquiring an additional 60 shares during the period. FIL Ltd increased its holdings in shares of AeroVironment by 0.7% in the fourth quarter. FIL Ltd now owns 9,731 shares of the aerospace company’s stock worth $2,354,000 after acquiring an additional 63 shares in the last quarter. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA increased its holdings in shares of AeroVironment by 30.4% in the third quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 300 shares of the aerospace company’s stock worth $94,000 after acquiring an additional 70 shares in the last quarter. Institutional investors own 86.38% of the company’s stock.

Key Stories Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Acquisition: AVAV closed a ~ $200M deal for Empirical Systems Aerospace (ESAero), expanding UAS/AAM engineering, AS9100 manufacturing and hybrid/electric propulsion capabilities — bolsters long‑term defense and product roadmap. AeroVironment Acquires ESAero
• Neutral Sentiment: Quarterly results showed strong top‑line growth ($408M, +143% YoY driven by BlueHalo) but AVAV missed consensus revenue and EPS; management set FY26 EPS guidance of $2.75–3.10 (below street consensus), creating mixed near‑term expectations. FQ3 Results
• Neutral Sentiment: Investor engagement: AVAV presented at the JPMorgan Industrials Conference (transcript available) — useful for detail and tone but not an immediate catalyst by itself. JPMorgan Presentation Transcript
• Neutral Sentiment: Insider moves: CAO Brian Shackley and director Stephen Page disclosed small share sales (200 and 250 shares); holdings remain substantial — routine but sometimes watched by investors. Insider Sales
• Negative Sentiment: Litigation/investigation risk: Pomerantz LLP has launched an investor investigation and other firms (Bronstein, Gewirtz & Grossman) are soliciting inquiries — increases headline and legal risk, which often pressures shares. Pomerantz Investigation
• Negative Sentiment: Analyst / sentiment pressure: BTIG trimmed its price target (from $415 to $330) and some media pieces highlight risks in AVAV’s profile — analyst cuts and negative commentary can weigh on sentiment despite strategic positives. BTIG Price Target Cut
• Negative Sentiment: Critical coverage: Articles calling out risks (operational or valuation) add downward pressure and may amplify selling in the short term. Critical Coverage

About AeroVironment

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.