WS Investor
30 Jun 2026, 09:57
AeroVironment (AVAV) Stock Soars 21% Premarket After Record Earnings, Revenue Surge, and Strong 2027 Outlook
AeroVironment (NASDAQ: AVAV) stock jumped more than 21% in premarket trading on Tuesday after reporting record fiscal fourth-quarter and full-year results, fueled by surging demand for autonomous defense systems and contributions from recent acquisitions.
Record Revenue Driven by Defense Demand
Fourth-quarter revenue climbed 133% year over year to $641.6 million, while fiscal 2026 revenue reached a record $1.98 billion, up 141% from the previous year.
Growth was supported by strong demand across autonomous systems and meaningful contributions from the BlueHalo and Empirical Systems Aerospace acquisitions, which expanded the company's capabilities in counter-UAS, space, cyber, and directed energy technologies.
Earnings More Than Double
Net income rose to $63.2 million, or $1.25 per diluted share, from $16.7 million, or $0.59 per share, a year earlier.
Adjusted earnings also improved, with adjusted EPS increasing to $1.84 from $1.61, while adjusted EBITDA surged to $140.1 million from $61.6 million.
Backlog Signals Continued Growth
One of the strongest takeaways from the report was AeroVironment's expanding order book.
Fiscal 2026 bookings: $2.7 billion
Book-to-bill ratio: 1.4x
Funded backlog: $1.2 billion, up from $726.6 million a year ago
The growing backlog provides strong revenue visibility as governments continue increasing investments in drones, counter-drone systems, and advanced defense technologies.
AeroVironment Issues Fiscal 2027 Guidance
The company expects:
Revenue: $2.125B–$2.225B
Adjusted EBITDA: $305M–$325M
Adjusted EPS: $3.02–$3.34
Management noted that reported GAAP earnings will continue to be affected by acquisition-related amortization expenses following the BlueHalo acquisition.
Why AVAV Stock Is Rising Today
Investors reacted positively to several catalysts:
Record quarterly and annual revenue
Triple-digit sales growth
Strong adjusted earnings
$2.7 billion in new bookings
Record funded backlog
Positive fiscal 2027 guidance
Continued strength in defense spending and autonomous systems demand
CEO Wahid Nawabi described fiscal 2026 as a transformational year, citing successful integration of acquisitions and growing opportunities across global defense markets.
With defense budgets expanding worldwide and demand for autonomous military technologies continuing to accelerate, investors view AeroVironment as one of the key beneficiaries of the long-term modernization trend.
AeroVironment (NASDAQ: AVAV) stock jumped more than 21% in premarket trading on Tuesday after reporting record fiscal fourth-quarter and full-year results, fueled by surging demand for autonomous defense systems and contributions from recent acquisitions.
Record Revenue Driven by Defense Demand
Fourth-quarter revenue climbed 133% year over year to $641.6 million, while fiscal 2026 revenue reached a record $1.98 billion, up 141% from the previous year.
Growth was supported by strong demand across autonomous systems and meaningful contributions from the BlueHalo and Empirical Systems Aerospace acquisitions, which expanded the company's capabilities in counter-UAS, space, cyber, and directed energy technologies.
Earnings More Than Double
Net income rose to $63.2 million, or $1.25 per diluted share, from $16.7 million, or $0.59 per share, a year earlier.
Adjusted earnings also improved, with adjusted EPS increasing to $1.84 from $1.61, while adjusted EBITDA surged to $140.1 million from $61.6 million.
Backlog Signals Continued Growth
One of the strongest takeaways from the report was AeroVironment's expanding order book.
Fiscal 2026 bookings: $2.7 billion
Book-to-bill ratio: 1.4x
Funded backlog: $1.2 billion, up from $726.6 million a year ago
The growing backlog provides strong revenue visibility as governments continue increasing investments in drones, counter-drone systems, and advanced defense technologies.
AeroVironment Issues Fiscal 2027 Guidance
The company expects:
Revenue: $2.125B–$2.225B
Adjusted EBITDA: $305M–$325M
Adjusted EPS: $3.02–$3.34
Management noted that reported GAAP earnings will continue to be affected by acquisition-related amortization expenses following the BlueHalo acquisition.
Why AVAV Stock Is Rising Today
Investors reacted positively to several catalysts:
Record quarterly and annual revenue
Triple-digit sales growth
Strong adjusted earnings
$2.7 billion in new bookings
Record funded backlog
Positive fiscal 2027 guidance
Continued strength in defense spending and autonomous systems demand
CEO Wahid Nawabi described fiscal 2026 as a transformational year, citing successful integration of acquisitions and growing opportunities across global defense markets.
With defense budgets expanding worldwide and demand for autonomous military technologies continuing to accelerate, investors view AeroVironment as one of the key beneficiaries of the long-term modernization trend.