AeroVironment Stock Surges 21% on Record Annual Revenue and Earnings Beat

Key Stats for AeroVironment Stock

• Pre-market price change for AeroVironment stock: 21%
• $AVAV Share Price as of Jun. 29: $139
• 52-Week High: $418
• $AVAV Stock Price Target: $286

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What Happened?

AeroVironment (AVAV) stock jumped roughly 21% today after the defense technology company posted fiscal Q4 results that blew past Wall Street estimates.

• Revenue for the quarter hit $641.6 million, up 133% from a year earlier and well above the $557.37 million analysts expected.
• For the full fiscal year, revenue rose 141% to a record $1.98 billion.
• Annual bookings reached $2.7 billion, with a book-to-bill ratio of 1.4, meaning the company booked more new business than it shipped during the year.
• Funded backlog grew to $1.2 billion.
• Earnings were just as strong. Quarterly net income jumped to $63.2 million, or $1.25 per diluted share, up sharply from $16.7 million, or $0.59 per share, a year earlier.
• Adjusted earnings per share came in at $1.84, topping the $1.48 analysts had forecast.
• Much of the growth came from AeroVironment’s acquisitions of BlueHalo and Empirical Systems Aerospace, which together contributed $282.3 million in quarterly revenue.

CEO Wahid Nawabi called fiscal 2026 a “transformational year,” pointing to the completed BlueHalo deal and the company’s strongest financial performance to date.

One area to watch: gross margin declined to 32% from 36% a year ago. That’s mostly due to a higher mix of service revenue following the BlueHalo acquisition, along with increased amortization tied to purchase accounting.

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What the Market Is Telling Us About AeroVironment Stock

AeroVironment stock’s surge reflects investor confidence that the company’s bet on diversification is paying off. Beyond its well-known drone business, AeroVironment now has meaningful exposure to counter-UAS systems, directed-energy weapons, and space and cyber technologies through its BlueHalo deal.

Demand signals remain strong across the portfolio. The company’s Titan counter-drone systems saw orders double this past year. Its LOCUST laser weapon system recently demonstrated a 100% success rate shooting down drones during a U.S. Navy exercise.

Freedom Eagle missile program is moving toward flight testing with growing Congressional support.

For fiscal 2027, AeroVironment guided to adjusted earnings per share of $3.02 to $3.34, below the $4.00 analyst consensus. Revenue guidance of $2.125 billion to $2.225 billion was roughly in line with the $2.18 billion midpoint expected by analysts.

The lighter earnings guidance reflects heavier investment ahead.

The company plans to spend 12% to 14% of revenue on capital expenditures next year as it expands manufacturing capacity across multiple facilities.

That’s a near-term cost, but management believes it positions AeroVironment stock for sustained growth as defense budgets continue shifting toward drone and counter-drone technology.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!