AeroVironment (AVAV) Earnings Date & Reports

Key Takeaways

• AeroVironment reported record first-quarter revenue of $480.5 million, up 6% year over year and ahead of consensus estimates of roughly $456 million.
• Non-GAAP (adjusted) earnings per share (EPS) reached $0.59, up 84% from $0.32 a year earlier and well above the roughly $0.25 analysts expected.
• Funded backlog climbed 37% year over year to a record $1.5 billion, supported by $683 million in quarterly bookings and a book-to-bill ratio of 1.4.
• The GAAP net loss narrowed sharply to $5.1 million ($0.10 per diluted share) from a $67.4 million loss a year earlier.
• Management reaffirmed its full-year fiscal 2027 outlook across revenue, adjusted EBITDA, and adjusted EPS.

Earnings Context and Why It Matters

AeroVironment's first quarter of fiscal 2027, which ended August 1, 2026, was the first full reporting period to follow a blockbuster fiscal 2026 that was lifted by the acquisitions of BlueHalo and Empirical Systems Aerospace. The defense technology company has become a focal point for investors watching surging demand for loitering munitions, uncrewed aircraft systems (UAS), and counter-drone capabilities. After a sharp run-up and subsequent pullback in the stock earlier in the year, this report mattered because it tested whether organic demand could sustain the growth story and whether a record backlog would convert into visible, profitable revenue.

Reported Results

AeroVironment posted record first-quarter revenue of $480.5 million, a 6% increase from $454.7 million in the prior-year period and above the analyst consensus of approximately $456 million. Growth was led by the Autonomous Systems (AxS) segment, which rose 21% year over year to $346 million, while the Space, Cyber, and Directed Energy (SCDE) segment declined 21% to $134.5 million, reflecting the termination of the SCAR program and other discontinued government work.

On a GAAP (generally accepted accounting principles) basis, the company reported a net loss of $5.1 million, or $0.10 per diluted share, a significant improvement from a $67.4 million loss, or $1.44 per share, in the same quarter last year. Non-GAAP adjusted EPS came in at $0.59, up 84% from $0.32 a year earlier and well ahead of consensus expectations of about $0.25.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $53 million, or 11% of revenue. The company also reported $683 million in bookings, producing a book-to-bill ratio of 1.4, meaning new orders outpaced revenue. Funded backlog reached a record $1.5 billion, up 37% from a year earlier, with total funded and unfunded backlog of roughly $2.8 billion.

Management reaffirmed full-year fiscal 2027 guidance, calling for revenue of $2.125 billion to $2.225 billion, adjusted EBITDA of $305 million to $325 million, and non-GAAP EPS of $3.02 to $3.34.

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Market Reaction and Investor Sentiment

Shares of AeroVironment responded positively to the report, with the stock rebounding after a volatile stretch earlier in the fiscal year. The combination of record revenue, a strong beat on adjusted EPS, and a record backlog reassured investors that demand remains robust despite concerns about government budget timing and the SCDE segment's revenue decline. Analysts highlighted the 1.4 book-to-bill ratio and the roughly 86% revenue visibility to the midpoint of full-year guidance as evidence of a durable growth trajectory. Sentiment was tempered, however, by a back-half-weighted delivery profile, a still-soft SCDE segment, and expectations for negative free cash flow as the company funds capacity expansion.

Forward Outlook and Key Factors to Monitor

Looking ahead, AeroVironment's guidance implies roughly 10% revenue growth at the midpoint for fiscal 2027, but management has signaled that results will be heavily weighted toward the second half of the year. The company expects revenue to be split about 45% in the first half and 55% in the second half, with adjusted EBITDA following a one-third, two-thirds distribution.

Investors should watch several factors in the coming quarters. First, the ramp of the LOCUST directed-energy program and the Titan counter-UAS (counter-unmanned aircraft systems) franchise, both of which are central to management's growth thesis. Second, the pace of margin recovery in the SCDE segment, where service margins remain under pressure from lower volumes.

Third, capital spending and free cash flow. Management plans capital expenditures of 12% to 14% of revenue and has said free cash flow will be negative in fiscal 2027 as it expands production capacity. Finally, government budget timing matters: a continuing resolution or delayed appropriations could shift revenue recognition between quarters, even if full-year guidance remains intact. These dynamics will shape how investors interpret the company's progress toward its fiscal 2027 targets.

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