TLDR
- AeroVironment stock jumped over 20% in pre-market trading after smashing fiscal Q4 2026 estimates.
- Quarterly revenue more than doubled year-over-year to $641.6 million, beating the $557 million consensus.
- Non-GAAP earnings per share came in at $1.84, topping estimates by roughly 25%.
- Funded backlog grew to $1.2 billion, up from under $727 million a year earlier.
- FY2027 EPS guidance of $3.02–$3.34 fell short of the $4.00 analyst consensus, the lone soft spot in the report.
AeroVironment stock soared more than 20% in pre-market trading on Tuesday after the drone and defense systems maker posted blowout fiscal fourth-quarter results. Shares touched $167.43 before the open, well above the stock’s 52-week low of $135.20 set just days earlier.
The company released its fiscal Q4 and full-year 2026 results late Monday. Revenue came in at $641.6 million, more than doubling from $275 million a year ago.
That figure crushed the analyst consensus of roughly $557 million. Non-GAAP earnings per share landed at $1.84, beating expectations of $1.47 to $1.48 by about 25%.
$AVAV up over 20% after crushing earnings driven by rising demand for expendable drones & loitering munitions
Its Switchblade drones are low-cost strike systems built to launch, hit a target and be replaced making AeroVironment one of the clearest plays on modern drone warfare. https://t.co/vv4Ffdt0Dn pic.twitter.com/4kKv1X6KvM
— Shay Boloor (@StockSavvyShay) June 30, 2026
Product sales climbed to just under $499 million from $242 million a year earlier. Contract services revenue more than quadrupled to $142.7 million.
GAAP net income jumped to over $63 million, up from under $17 million in the same quarter last year. That’s a substantial swing in profitability for a company that’s been scaling fast.
Autonomous Systems Leads the Charge
The Autonomous Systems segment was the standout performer. It generated $492 million in revenue, well above the roughly $402 million analysts had penciled in, and made up about 76% of total quarterly sales.
Recent acquisitions played a big role too. BlueHalo and Empirical Systems Aerospace (ESAero) together contributed over $282 million to the quarter’s revenue.
CEO Wahid Nawabi struck an upbeat tone on the earnings call. He said the company is seeing “strong customer indications” that point to upcoming contract wins over the next 12 to 24 months.
That confidence is backed by numbers. Funded backlog rose to $1.2 billion from under $727 million a year earlier, with another $1.5 billion sitting in unfunded backlog.
Nawabi also flagged growing interest in the company’s LOCUST laser weapon system. He pointed to successful drone interception tests during recent Navy exercises as a sign of demand to come.
Guidance Falls Short, But Investors Shrug
Not everything in the report was rosy. FY2027 EPS guidance of $3.02 to $3.34 came in below the $4.00 consensus analysts were expecting.
Investors largely looked past that gap, focused instead on the strength of the backlog and demand pipeline. Full-year revenue for fiscal 2026 came in just under $2 billion, and management is guiding for $2.13 billion to $2.23 billion in fiscal 2027.
That range tops last year’s total, even if bottom-line growth looks more measured. Much of the expected margin pressure ties back to spending on production capacity and international sales infrastructure.
The broader market gave the stock a helpful tailwind on the day. The Nasdaq gained 2.1%, the S&P 500 added 1.2%, and the Dow rose 0.6%, all pointing to a risk-on session.
Much of AeroVironment’s backlog traces back to the U.S. Army, a steady and reliable customer base. The company defines backlog as remaining performance obligations under firm orders with funding already appropriated.
As of Tuesday’s pre-market session, AeroVironment shares stood at $139.00, up 0.76% on the day, with a market cap of $6.9 billion. The stock’s 52-week range spans from $135.20 to $417.86, reflecting how far the shares have swung over the past year.
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