AeroVironment Q1 2027: EPS Beats Expectations as Backlog Hits Record $1.5B
As seen on the 24/7 Wall St. homepage on September 9, 2026.
Funded backlog hit a record $1.5 billion, up 37% year over year, and the drone maker came in at more than double expectations after sliding 4.7% into the earnings report. Autonomous Systems revenue grew 21%, enough to cover a 21% drop in space, cyber and directed energy, with full-year guidance reaffirmed.
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AeroVironment's fiscal first quarter of 2027 adjusted earnings per share of $0.59 came in well above expectations, with revenue also topping estimates and growing year over year. The stock had slid into the report, so the upside is not yet priced in.
Funded backlog reached a record $1.5 billion, demand that has not yet flowed through the income statement. That kind of visibility is rare in defense contracting.
The Autonomous Systems segment drove the result, with revenue rising 21% on strength in Uncrewed Aircraft Systems and Precision Strike and Defensive Systems. Gross margin widened as non-cash purchase accounting charges tied to the BlueHalo acquisition eased.
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The Space, Cyber and Directed Energy segment declined 21%, a real drag to monitor, yet management reaffirmed full-year fiscal 2027 revenue and non-GAAP EPS guidance. Roughly 70% of non-GAAP earnings are expected in the second half.
Strategic wins disclosed with the quarter include a $500 million Titan system award for the JIATF-401 Domestic Shield program, alongside LOCUST and P550 contracts for the Army. A first international commercial LOCUST laser order underscores demand beyond the domestic defense budget.
Mentioned: AVAV