AeroVironment (AVAV) Delivers Record Q4 Revenue with Strong Backlog Growth
Key Takeaways
- AeroVironment reported record fourth-quarter revenue of $641.6 million, up 133% year-over-year.
- Full-year fiscal 2026 revenue reached $1.98 billion, reflecting 141% growth driven by acquisitions and demand.
- Non-GAAP earnings per diluted share came in at $1.84, exceeding analyst expectations of approximately $1.48 to $1.53.
- Funded backlog stood at $1.2 billion as of April 30, 2026, up significantly from the prior year.
- The company provided fiscal 2027 revenue guidance of $2.125 billion to $2.225 billion.
- GAAP net income for the quarter was $63.2 million, or $1.25 per diluted share.
Why These Results Matter
AeroVironment’s fiscal fourth quarter, ending April 30, 2026, closed a transformative year marked by major acquisitions and surging defense demand. The results highlight the company’s expanded capabilities in autonomous systems, counter-unmanned aerial systems (UAS), and related technologies. Strong backlog growth and revenue momentum position AeroVironment to benefit from increased global defense spending, making this report a key indicator of its ability to scale operations and integrate recent purchases like BlueHalo. From what I see, this kind of execution in a high-growth environment is worth monitoring closely.
Breaking Down the Numbers
Revenue for the fourth quarter totaled $641.6 million, a 133% increase from $275.1 million in the year-ago period, with product sales contributing significantly alongside services. Acquisitions accounted for a substantial portion of the growth. Full-year revenue reached $1,976.8 million. Gross margin rose to $202.6 million but declined as a percentage of revenue to 32% due to higher service mix and acquisition-related costs. Non-GAAP adjusted EBITDA reached $140.1 million, while non-GAAP earnings per diluted share of $1.84 beat consensus estimates. GAAP net income was $63.2 million ($1.25 per diluted share). Funded backlog grew to $1.2 billion. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
How the Market Reacted
Following the June 29, 2026, release, investor focus centered on the substantial revenue beat and backlog expansion, which signaled robust demand and successful acquisition integration. The non-GAAP earnings outperformance relative to estimates likely supported positive sentiment, though acquisition-related amortization weighed on GAAP figures. Broader defense sector trends and guidance for fiscal 2027 provided additional context for interpreting the results. One thing that stands out is how the backlog figure underscores the company’s visibility into future revenue.
Looking Ahead
AeroVironment issued fiscal 2027 guidance calling for revenue between $2.125 billion and $2.225 billion, with non-GAAP adjusted EBITDA expected in the $305 million to $325 million range. Investors should watch progress on integrating recent acquisitions, supply chain execution, and the conversion of backlog into revenue.
Additional catalysts include potential updates on government contract wins, demand trends in lethal and non-lethal drone systems, and performance in the Space, Cyber and Directed Energy segment. Margin trends will remain important given the shift toward service revenue and ongoing amortization expenses from acquisitions.
Broader industry dynamics, such as defense budget allocations and geopolitical developments affecting unmanned systems demand, will also influence results. Monitoring quarterly bookings and book-to-bill ratios can provide insight into sustained growth momentum. I’m watching this closely as the company moves into the new fiscal year.
Using AI Tools to Refine Analysis
When reviewing earnings like these, I often turn to Tickeron’s AI Screener to quickly filter for similar companies based on technical patterns, fundamentals, and industry trends. It helps surface comparable names and spot potential ideas without spending hours on manual research. The tool allows customization across market cap, volatility, performance metrics, and AI-driven signals, making it a practical part of staying on top of sectors like defense technology.
Disclaimer
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AVAV in -8.69% downward trend, falling for three consecutive days on July 09, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where AVAV declined for three days, in of 314 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 55 cases where AVAV's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
AVAV moved below its 50-day moving average on July 07, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AVAV crossed bearishly below the 50-day moving average on June 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
The Aroon Indicator for AVAV entered a downward trend on July 07, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where AVAV's RSI Oscillator exited the oversold zone, of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 01, 2026. You may want to consider a long position or call options on AVAV as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for AVAV just turned positive on July 01, 2026. Looking at past instances where AVAV's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where AVAV advanced for three days, in of 296 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.663) is normal, around the industry mean (10.554). P/E Ratio (149.026) is within average values for comparable stocks, (92.824). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (4.123). Dividend Yield (0.000) settles around the average of (0.019) among similar stocks. P/S Ratio (3.591) is also within normal values, averaging (32.098).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. AVAV’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AVAV’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock worse than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a developer of unmanned aircraft and charging systems
Industry AerospaceDefense
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