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AeroVironment Posts Record Quarterly Revenue, Beats Estimates; 85% of Analysts Rate It a Buy
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AeroVironment (NASDAQ:AVAV) reported historic fiscal 2027 first-quarter results, with record revenue of $480.5 million, up 6% year over year, driven by strong sales in its autonomous systems segment. Adjusted diluted earnings per share surged 84% to $0.59, significantly beating analyst expectations of $0.25. The company also reported record bookings of $683 million, up 71%, and a record funded backlog of $1.5 billion. Key contract wins include a $464.8 million U.S. Army contract for a high-energy laser system and a $50 million international order for the LOCUST counter-drone system. Management maintained its full-year outlook for revenue between $2.125 billion and $2.225 billion and adjusted EPS of $3.16. Despite earlier stock volatility due to restated financials and a lost contract, Wall Street is bullish, with 85% of analysts rating the stock a buy or strong buy. The stock trades at 44 times forward earnings, down from much higher multiples earlier in the year.
Source report
Danny Vena, CPA, The Motley Fool Wed, September 9, 2026 at 5:24 PM PDT | 4 min read
- AVAV: +4.45%
- NVDA: -2.37%
This year has been a rollercoaster ride for AeroVironment (NASDAQ: AVAV) investors. After surging more than 60% at the start of 2026, the stock lost over 64% of its value due to restated financials and the loss of a key contract.
Despite these challenges, expectations were high heading into the defense company's quarterly financial report — and shareholders got what they were looking for. The results were a reminder that, like its drones, AeroVironment has further to fly.
For the Defense
AeroVironment reported results for its fiscal 2027 first quarter (ended Aug. 1), and there was much to like. The company delivered record revenue of $480.5 million, up 6% year over year, driven by strong sales in the autonomous systems segment. Adjusted diluted earnings per share (EPS) rose 84% to $0.59.
For context, analysts' consensus estimates called for revenue of $456.1 million and adjusted EPS of $0.25 — meaning AeroVironment sailed past expectations.
- Automated Systems (AxS) segment — which includes drones — grew 21% year over year to $346 million.
- Space, Cyber, and Directed Energy (SCDE) segment declined 21% to $134 million.
Other metrics confirmed the strength of the results:
- Bookings: $683 million, up 71% year over year
- Book-to-bill ratio: 1.4
- Funded backlog: A record $1.5 billion, up 37% year over year and 23% sequentially
- Unfunded backlog: $1.4 billion (expected but not yet obligated future funding)
On Tuesday, the company secured its first international order for the LOCUST directed energy counter-drone system, valued at $50 million. This followed AeroVironment's U.S. Army contract for $464.8 million for its Enduring-High Energy Laser (E-HEL) — the first-ever production contract for a high-energy laser weapons system in U.S. history. These were just two of several major contract wins during the quarter.
What the Future Holds
Management remains optimistic. AeroVironment maintained its full-year outlook:
- Revenue: Between $2.125 billion and $2.225 billion, representing 10% growth at the midpoint
- Adjusted diluted EPS: $3.16, a decline of 4% at the midpoint
Management cited a planned facility and capacity expansion, which will increase depreciation expense, as the reason for the lower profit forecast.
AeroVironment's challenges earlier this year have weighed on its stock price while making its valuation much more reasonable. The stock is currently trading at 44 times forward earnings and 32 times next year's expected earnings — less than one-third of their levels from earlier this year.
Wall Street is firmly onboard. Of the analysts who offered an opinion in September, 85% rate the stock a buy or strong buy, and none rate it a sell.
This article originally appeared on The Motley Fool.
Source
Yahoo FinanceWestern