AeroVironment (AVAV) Earnings Date & Reports

Key Takeaways

• AeroVironment posted record quarterly revenue of $480.5 million, up 6% from $454.7 million a year earlier.
• Adjusted EPS (earnings per share) came in at $0.59, up 84% year over year and far above the roughly $0.30 consensus estimate.
• Funded backlog reached a record $1.5 billion, up 37% year over year, supported by a 1.4x book-to-bill ratio.
• Full-year fiscal 2027 guidance was reaffirmed: revenue of $2.125 billion to $2.225 billion and adjusted EPS of $3.02 to $3.34.
• The net loss narrowed sharply to $5.1 million from $67.4 million a year earlier.
• Shares rose roughly 4% in after-hours trading following the announcement.

Earnings Context and Why It Matters

AeroVironment is a leading supplier of uncrewed aircraft systems (UAS, or drones), loitering munitions, and counter-drone technologies for defense customers. Because the company's fiscal year ends in late April, its fiscal first quarter ran through August 1, 2026. With global defense spending on autonomous systems expanding, AeroVironment's results offer investors a real-time read on how quickly rising orders are translating into revenue and profit. The quarter also matters because the company is in the middle of a major capacity buildout, and investors are watching whether growing demand can offset the near-term costs of expanding manufacturing.

Reported Results

For the first quarter of fiscal 2027, AeroVironment reported record revenue of $480.5 million, up 6% from $454.7 million in the prior-year period and above the consensus estimate of roughly $460 million. Adjusted EPS was $0.59, an 84% increase year over year that comfortably exceeded the approximately $0.30 analysts had expected.

On a GAAP (generally accepted accounting principles) basis, the company recorded a net loss of $5.1 million, or $0.10 per diluted share, a sharp improvement from a net loss of $67.4 million, or $1.44 per diluted share, a year earlier. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $53.4 million, compared with $56.6 million in the same quarter last year.

Demand indicators were a highlight. Bookings reached about $683 million, producing a book-to-bill ratio of 1.4x, and funded backlog climbed to a record $1.5 billion, up 37% year over year. Total funded and unfunded backlog was approximately $2.8 billion. Within the results, the Autonomous Systems segment generated $346 million in revenue, up 21% year over year, while the Space, Cyber and Directed Energy segment contributed $134 million, down 21% from the prior year.

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

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Market Reaction and Investor Sentiment

Investors responded positively to the quarter. AeroVironment shares rose about 4% in after-hours trading on September 9, 2026, as the earnings beat and record backlog outweighed a modest miss in adjusted EBITDA versus the prior year. Sentiment had been cautious heading into the print, with the stock down sharply over the prior 12 months amid concerns about near-term margins and heavy capital spending. The stronger-than-expected adjusted EPS and a 1.4x book-to-bill ratio helped reassure investors that demand remains robust even as the company invests aggressively in production capacity.

Forward Outlook and Key Factors to Monitor

AeroVironment's reaffirmed fiscal 2027 guidance points to a back-half-weighted year. Management expects roughly 45% of revenue to arrive in the first half and 55% in the second half, with about one-third of adjusted EBITDA recognized in the first half and two-thirds in the second. That mix reflects anticipated volume growth and improving sales composition later in the fiscal year.

Investors will want to monitor free cash flow, which management expects to remain negative in fiscal 2027. Capital expenditures are projected at 12% to 14% of revenue as the company expands production facilities and supply-chain capacity, while research and development spending is expected to run at 7% to 9% of revenue. These investments are aimed at meeting accelerating customer demand, but they create near-term pressure on cash generation.

Other factors to watch include progress on recent contract wins, such as high-energy laser and loitering munitions awards, and the pace at which funded backlog converts into revenue. Segment-level margins, particularly in services, and the trajectory of the Space, Cyber and Directed Energy business will also be important signals. Finally, broader defense-budget timing and international order flow remain key swing factors for a company whose growth is closely tied to global demand for autonomous defense systems.

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