AeroVironment Q4 Earnings Beat, Shares Jump 19%

AeroVironment Q4 Earnings Beat, Shares Jump 19%

AeroVironment reported fiscal fourth‑quarter results that beat Wall Street expectations, sending the stock up roughly 19%. Adjusted earnings per diluted share were $1.84, surpassing the consensus estimate of $1.48, while revenue reached $641.6 million, well above the $557.37 million forecast. The revenue figure represented a 133% increase year‑over‑year. For the full fiscal year, revenue rose 141% to a record $1.98 billion. Annual bookings totaled $2.7 billion, delivering a book‑to‑bill ratio of 1.4, and the funded backlog grew to $1.2 billion.

Chief Executive Officer Wahid Nawabi described fiscal 2026 as a "transformational year," highlighting the completion of the BlueHalo acquisition and investments aimed at diversifying the portfolio. The acquisitions of BlueHalo and Empirical Systems Aerospace contributed $282.3 million to quarterly revenue. Gross margin declined to 32% from 36% because of a higher proportion of service revenue following the BlueHalo deal and increased amortization related to purchase accounting. Net income climbed to $63.2 million, or $1.25 per diluted share, compared with $16.7 million, or $0.59 per diluted share, a year earlier.

Looking ahead, AeroVironment forecast fiscal 2027 adjusted earnings per share in the range of $3.02 to $3.34, below the analyst consensus of $4.00. Revenue guidance for fiscal 2027 was set between $2.125 billion and $2.225 billion, roughly in line with the consensus midpoint of $2.18 billion. The company indicated that the guidance reflects continued strong demand for its lethal and non‑lethal drones, counter‑UAS, space, and advanced technology offerings.