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

AeroVironment (NASDAQ:AVAV) posted 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 13.93% and a positive return on equity of 3.52%. The firm had revenue of $408.05 million for the quarter, compared to the consensus estimate of $487.94 million. During the same period in the previous year, the firm posted $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 Stock Performance

Shares of AeroVironment stock opened at $207.73 on Thursday. The stock has a market cap of $10.37 billion, a price-to-earnings ratio of -47.86, a PEG ratio of 3.51 and a beta of 1.26. The company has a debt-to-equity ratio of 0.16, a current ratio of 5.08 and a quick ratio of 4.29. AeroVironment has a 1 year low of $102.25 and a 1 year high of $417.86. The firm’s 50-day moving average is $282.58 and its 200 day moving average is $292.68.

Analysts Set New Price Targets

A number of research firms have issued reports on AVAV. UBS Group decreased their price objective on AeroVironment from $259.00 to $236.00 and set a “neutral” rating for the company in a report on Wednesday. Jefferies Financial Group reiterated a “buy” rating and issued a $390.00 price target on shares of AeroVironment in a research note on Monday, March 2nd. Citigroup reissued a “market outperform” rating on shares of AeroVironment in a research report on Monday, January 12th. Needham & Company LLC dropped their price objective on shares of AeroVironment from $450.00 to $400.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Raymond James Financial restated an “underperform” rating on shares of AeroVironment in a report on Monday, March 2nd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, AeroVironment presently has a consensus rating of “Moderate Buy” and a consensus target price of $329.89.

Key Stories Impacting AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Ongoing defense demand and strategic positioning could support long?term upside — analysts and commentary note strong secular demand for drones/C?UAS and AeroVironment’s product set (Titan RF, counter?drone tech) as a tailwind. KeyBanc Flags AeroVironment (AVAV) as Top Iran Conflict Winner
• Positive Sentiment: MarketBeat frames the pullback as a value opportunity given a still?healthy balance sheet, backlog and institutional buying; this view supports a potential rebound if execution and contract clarity improve. AeroVironment Touches Down On Value Opportunity
• Neutral Sentiment: Corporate insider activity — the CFO sold 396 shares (SEC filing). Small in size but worth noting for active traders who monitor insider transactions. SEC Form 4 – Kevin Patrick McDonnell
• Negative Sentiment: Q3 results missed expectations: revenue of ~$408M (vs. ~\$488M est.) and adjusted EPS of $0.64 missed consensus; management cut FY2026 adjusted EPS guidance to $2.75–$3.10 and trimmed revenue guidance — the core reason for the selloff. AeroVironment Shares Plunge on Q3 Miss and Weak Outlook
• Negative Sentiment: Material contract uncertainty: reports highlight potential termination/uncertainty around the SCAR program and exposure tied to a ~$1.7B Space Force contract — a direct hit to revenue visibility. AeroVironment (AVAV) Stock Plunges 9% on Q3 Miss and $1.7B Contract Uncertainty
• Negative Sentiment: New debt issuance: AeroVironment disclosed $727M in notes which raises leverage, tightens covenants and increases liquidity risk — a balance?sheet factor investors may view unfavorably while revenue visibility is reduced. AeroVironment’s $727 Million Notes Raise Leverage, Tighten Covenants and Heighten Liquidity Risk
• Negative Sentiment: Analyst targets and ratings were trimmed across multiple firms (Stifel, RBC, KeyBanc, UBS, others), reflecting reduced near?term expectations and weighing on sentiment. Analyst Price Target Moves (Benzinga roundup)
• Negative Sentiment: Investor litigation alert: a law firm announced an investigation into shareholder claims, which adds legal/overhang risk. Pomerantz Investor Alert

Insider Activity at AeroVironment

In other AeroVironment news, Director Stephen F. Page sold 250 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $300.00, for a total transaction of $75,000.00. Following the sale, the director directly owned 50,001 shares in the company, valued at approximately $15,000,300. This trade represents a 0.50% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Brian Charles Shackley sold 200 shares of the company’s stock in a transaction on Tuesday, December 30th. The shares were sold at an average price of $250.92, for a total value of $50,184.00. Following the transaction, the chief accounting officer directly owned 5,994 shares in the company, valued at approximately $1,504,014.48. The trade was a 3.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 4,474 shares of company stock valued at $1,390,404 over the last 90 days. Corporate insiders own 0.81% of the company’s stock.

Institutional Investors Weigh In On AeroVironment

Hedge funds have recently modified their holdings of the business. Ameriprise Financial Inc. raised 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 worth $143,692,000 after purchasing an additional 73,963 shares during the period. Alliancebernstein L.P. raised its stake 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 worth $135,937,000 after buying an additional 32,721 shares during the period. ARK Investment Management LLC lifted its position in shares of AeroVironment by 8.2% during the 4th 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. grew its stake in shares of 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 increased its holdings in AeroVironment by 30.7% in the 3rd quarter. Northern Trust Corp now owns 380,899 shares of the aerospace company’s stock worth $119,941,000 after acquiring an additional 89,503 shares in the last quarter. Institutional investors 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.