Q3 25 EPS
$0.30
MISS 54.77%
Est. $0.66
Q3 25 Revenue
$167.6M
MISS 18.78%
Est. $206.4M
vs S&P Since Q3 25
-4.1%
TRAILING MARKET
AVAV +23.0% vs S&P +27.1%
Market Reaction
Did AVAV Beat Earnings? Q3 2025 Results
AeroVironment delivered a sharply disappointing fiscal Q3 2025, with both earnings and revenue falling well short of Wall Street expectations as a confluence of operational disruptions weighed heavily on results. The drone and munitions maker reporte… Read more AeroVironment delivered a sharply disappointing fiscal Q3 2025, with both earnings and revenue falling well short of Wall Street expectations as a confluence of operational disruptions weighed heavily on results. The drone and munitions maker reported non-GAAP adjusted EPS of $0.30, missing the $0.66 consensus estimate by 54.77%, while revenue slid 10.2% year-over-year to $167.64 million, an $38.77 million shortfall against the $206.41 million analysts had anticipated. The primary culprits were a steep 44% collapse in UnCrewed Systems revenue and the January Southern California wildfires, which physically disrupted operations and prevented the company from fulfilling scheduled deliveries, sending shares down roughly 13% to their lowest level in a year. A 46% surge in Loitering Munitions Systems revenue to $83.94 million provided only partial cushion. On a more constructive note, AeroVironment's funded backlog hit a record $763.50 million, up 65% from fiscal year-end, and management now guides FY2025 revenue of $780 million to $795 million, with a record Q4 expected to close the year on stronger footing.
Key Takeaways
- • Record Switchblade and Jump-20 orders drove funded backlog to record $763.5 million
- • LMS revenue grew 46% year-over-year driven by increased Switchblade demand
- • Gross margin percentage improved to 38% from 36% due to favorable LMS contract definitizations
- • Southern California high winds, fires and resulting blackouts negatively impacted Q3 revenue
- • UxS revenue declined 44% year-over-year, reflecting transition away from Ukraine demand
- • SG&A increased $16.0 million year-over-year including $10.1 million in BlueHalo acquisition-related expenses
AVAV YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
AVAV Revenue by Segment
With YoY comparisons, source: SEC Filings
“We faced a number of short-term challenges in the third quarter, including the unprecedented high winds and fires in Southern California, which impacted our ability to meet our goals. Nevertheless, we made significant progress towards executing our long-term growth strategy and building resiliency for the future.”
— Wahid Nawabi, Q3 2025 Earnings Press Release
AVAV Earnings Trends
AVAV vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
AVAV EPS Trend
Earnings per share: estimate vs actual
AVAV Revenue Trend
Quarterly revenue: estimate vs actual
AVAV Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 26 BEAT FY | $1.47 | $1.84 | +25.01% | $641.6M | +14.76% |
| FY Full Year | $2.87 | $3.31 | +15.27% | $1.98B | +4.14% |
| Q3 26 MISS | $0.69 | $0.64 | -7.39% | $408.0M | -14.21% |
| Q2 26 MISS | $0.79 | $0.44 | -44.23% | $472.5M | +1.48% |
| Q1 26 MISS | $0.34 | $0.32 | -6.71% | $454.7M | +4.06% |
| Q4 25 BEAT FY | $1.41 | $1.61 | +13.92% | $275.1M | +13.33% |
| FY Full Year | $3.07 | $3.28 | +6.74% | $820.6M | +4.25% |
| Q3 25 MISS | $0.66 | $0.30 | -54.77% | $167.6M | -18.78% |