AeroVironment (NASDAQ:AVAV) Announces Earnings Results

AeroVironment (NASDAQ:AVAV) issued its quarterly earnings results on Tuesday. The aerospace company reported $0.64 EPS for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.04), FiscalAI reports. The business had revenue of $408.05 million for the quarter, compared to analyst estimates of $487.94 million. AeroVironment had a negative net margin of 13.93% and a positive return on equity of 3.52%. AeroVironment’s revenue for the quarter was up 143.4% on a year-over-year basis. During the same period last year, the business posted $0.30 earnings per share. 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 Trading Down 0.2%

Shares of AeroVironment stock traded down $0.31 on Thursday, hitting $207.42. 976,283 shares of the company’s stock traded hands, compared to its average volume of 1,968,261. The firm’s 50-day moving average price is $282.58 and its two-hundred day moving average price is $292.68. The company has a debt-to-equity ratio of 0.16, a current ratio of 5.08 and a quick ratio of 4.29. The stock has a market capitalization of $10.36 billion, a PE ratio of -47.97, a price-to-earnings-growth ratio of 3.51 and a beta of 1.26. AeroVironment has a one year low of $102.25 and a one year high of $417.86.

Analysts Set New Price Targets

A number of research firms have recently issued reports on AVAV. Zacks Research downgraded AeroVironment from a “hold” rating to a “strong sell” rating in a report on Wednesday, March 4th. Jefferies Financial Group reiterated a “buy” rating and issued a $390.00 price objective on shares of AeroVironment in a research note on Monday, March 2nd. Citizens Jmp decreased their target price on shares of AeroVironment from $400.00 to $350.00 and set a “market outperform” rating for the company in a research note on Wednesday. Piper Sandler dropped their price target on shares of AeroVironment from $391.00 to $290.00 and set an “overweight” rating on the stock in a research note on Tuesday, March 3rd. Finally, BTIG Research cut their price objective on AeroVironment from $415.00 to $330.00 and set a “buy” rating for the company in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, AeroVironment has a consensus rating of “Moderate Buy” and a consensus price target of $325.17.

Insider Activity at AeroVironment

In related news, CAO Brian Charles Shackley sold 200 shares of the firm’s stock in a transaction on Tuesday, December 30th. The shares were sold at an average price of $250.92, for a total transaction of $50,184.00. Following the sale, the chief accounting officer directly owned 5,994 shares in the company, valued at $1,504,014.48. This trade represents a 3.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Kevin Patrick Mcdonnell sold 999 shares of the stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $367.60, for a total value of $367,232.40. Following the transaction, the chief financial officer owned 17,301 shares of the company’s stock, valued at approximately $6,359,847.60. This trade represents a 5.46% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 4,474 shares of company stock worth $1,390,404. 0.81% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of AVAV. Ameriprise Financial Inc. boosted its holdings in AeroVironment by 17.2% in the 2nd quarter. Ameriprise Financial Inc. now owns 504,270 shares of the aerospace company’s stock valued at $143,692,000 after purchasing an additional 73,963 shares during the period. Alliancebernstein L.P. raised its position in shares of AeroVironment by 7.4% in the second quarter. Alliancebernstein L.P. now owns 477,055 shares of the aerospace company’s stock valued at $135,937,000 after buying an additional 32,721 shares in the last quarter. ARK Investment Management LLC raised its position in shares of AeroVironment by 8.2% in the fourth quarter. ARK Investment Management LLC now owns 433,129 shares of the aerospace company’s stock valued at $104,770,000 after buying an additional 32,672 shares in the last quarter. Alyeska Investment Group L.P. boosted its stake in shares of AeroVironment by 28.0% in the fourth quarter. Alyeska Investment Group L.P. now owns 389,772 shares of the aerospace company’s stock valued at $94,282,000 after buying an additional 85,236 shares during the period. Finally, Northern Trust Corp boosted its stake in shares of AeroVironment by 30.7% in the third 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 during the period. 86.38% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: MarketBeat argues the pullback creates a long?term value entry: technical indicators show a near?term bottom, institutional buying remains strong, and the firm highlights upside if AeroVironment executes on backlog and commercial expansion. AeroVironment Touches Down On Value Opportunity
• Positive Sentiment: BTIG lowered its price target but kept a “buy” rating (PT cut to $330), signaling some analysts still see meaningful upside despite the near?term headwinds. BTIG Research price target note (Benzinga)
• Neutral Sentiment: Q3 results: revenue surged ~143% YoY to ~$408M but missed analyst revenue and EPS estimates; company provided FY2026 EPS guidance of $2.75–$3.10 (below consensus). The underlying growth is strong, but guidance disappointed. Q3 results and call
• Neutral Sentiment: Multiple firms trimmed price targets (KeyBanc, Stifel, RBC, UBS, others). Ratings mostly remain Overweight/Outperform/Buy but with lower target prices — a mixed signal for medium?term sentiment. Analyst reactions and target cuts
• Negative Sentiment: Market reaction: shares plunged after the Q3 miss and outlook cut — investors punished short?term visibility and growth assumptions. Shares plunge on Q3 miss
• Negative Sentiment: Contract risk: reports on potential SCAR/Space Force contract termination or timing disruptions ( ~$1.7B uncertainty) amplify revenue visibility concerns. SCAR contract uncertainty
• Negative Sentiment: Financing risk: AeroVironment disclosed a $727M notes issuance that raises leverage, tightens covenants and heightens liquidity risk — a material new risk for investors. Notes raise and leverage risk
• Negative Sentiment: Legal/insider signals: a Pomerantz investor probe was announced, and the CFO disclosed a sale of ~396 shares—both items add short?term headline risk. Pomerantz investigation CFO Form 4

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.