AeroVironment (AVAV) Earnings Date & Reports
AeroVironment Inc supplies unmanned aircraft systems, tactical missile systems, high-altitude pseudo-satellites, and other related services to government agencies within the United States Department of Defense as well as the United States allied international governments... Show more
AVAV is expected to report earnings to rise 131.25% to $1.48 per share on June 30
AeroVironment (AVAV) Fiscal Q3 2026 Earnings Recap: Revenue Surges 143% on Strong Demand
Key Takeaways
- Revenue jumped 143% year-over-year to $408.0 million, boosted by the BlueHalo acquisition and higher product sales.
- Non-GAAP adjusted EPS came in at $0.64, missing consensus estimates of around $0.68-$0.72.
- GAAP net loss widened to $156.6 million due to a $151.3 million goodwill impairment in the Space segment.
- Funded backlog hit a record $1.1 billion, with nine-month bookings of $2.1 billion and a 1.6 book-to-bill ratio.
- FY2026 guidance updated to $1.85-$1.95 billion in revenue and non-GAAP EPS of $2.75-$3.10.
Earnings Context and Why It Matters
AeroVironment, a leader in unmanned aircraft systems (UAS) and defense technologies, reported Fiscal Q3 2026 results amid robust demand for its Switchblade loitering munitions and other autonomous platforms. The quarter reflected integration challenges from the May 2025 BlueHalo acquisition, which expanded capabilities in space, cyber, and directed energy. Investors watched closely for execution on international orders and U.S. defense contracts, as rising geopolitical tensions drive demand for affordable precision strike solutions. Strong backlog growth underscores long-term potential, but margin pressures and program delays highlight risks in the defense sector.
AeroVironment posted Q3 revenue of $408.0 million, surpassing prior-year figures by 143% from $167.6 million, primarily due to $176.5 million from BlueHalo and organic growth. However, it fell short of consensus expectations of approximately $473 million. Product revenue drove the top line at 68% of total, with Autonomous Systems (AxS) at $278.7 million and Space, Cyber and Directed Energy (SCDE) at $129.3 million.
Gross profit rose 56% to $98.8 million, though margins contracted to 24% from 38% due to higher service mix and amortization expenses. GAAP operating loss deepened to $179.0 million from $3.1 million, driven by the $151.3 million goodwill impairment tied to a Space Force program stop-work order. Non-GAAP adjusted EPS was $0.64, below estimates, while nine-month revenue reached $1.3 billion.
Guidance for FY2026 (ending April 30, 2026) was narrowed to $1.85-$1.95 billion in revenue, reflecting Q4 acceleration, with non-GAAP adjusted EBITDA of $265-$285 million. Funded backlog stood at a record $1.1 billion.
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Market Reaction and Investor Sentiment
Shares of AVAV dropped 7-9% in after-hours trading and the following day after the March 10 release, as the revenue miss and large impairment overshadowed backlog strength. Investors expressed caution over SCDE segment delays and margin compression, though optimism persists around AxS demand and Q4 visibility.
Forward Outlook and Key Factors to Monitor
Following Q3, AeroVironment anticipates a record Q4 with revenue ramping toward the high end of FY2026 guidance. The $1.1 billion funded backlog provides visibility, particularly in UAS and precision munitions amid ongoing global conflicts.
Investors should track BlueHalo integration for margin recovery, as adjusted product margins held at 32%. Resolution of the SCAR program stop-work order and SCDE cash flow revisions will be critical, alongside R&D investments for commercialization.
Nine-month bookings of $2.1 billion signal sustained demand, but execution risks include supply chain constraints and government funding delays. Upcoming catalysts include potential new international contracts and FY2027 outlook in late June. Monitor defense budget trends and peer performance for sector context.
Disclaimer
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General Information
a developer of unmanned aircraft and charging systems
Industry AerospaceDefense