AeroVironment Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.12%.
Did AVAV Beat Earnings? Q1 2026 Results
AeroVironment delivered a tale of two metrics in fiscal Q1 2026, posting record quarterly revenue of $454.68 million — up 140% year-over-year and ahead of the $436.94 million consensus by 4.06% — while its $0.32 adjusted EPS fell short of the $0.343 estimate by 6.71%, a divergence that tells the story of a company still absorbing a transformative acquisition. The May 2025 closing of the BlueHalo deal, which contributed $235.20 million in revenue and spawned an entirely new Space, Cyber and Directed Energy segment, drove the top-line surge but also unleashed $79.70 million in intangible amortization and purchase accounting charges, helping push the company to a <a href="https://247wallst.com/investing/2025/12/10/aerovironment-posts-record-revenue-but-swings-to-67-million-loss-on-integration-costs/">GAAP operating loss</a> of $69.27 million against operating income of $23.06 million a year earlier. Legacy organic revenue still grew 16% to $219.50 million, underscoring underlying business momentum. Management reaffirmed full-year FY26 revenue guidance of $1.90 billion to $2.00 billion and non-GAAP adjusted EBITDA of $300 million to $320 million, with margins expected to climb from 10–12% in Q1 to high-teens by the fourth quarter.
- BlueHalo acquisition contributed $235.2 million of revenue in Q1 FY26
- Legacy AeroVironment revenue of $219.5 million up 16% year-over-year
- Higher product sales of $154.0 million and higher service revenue of $111.2 million year-over-year
- Record first quarter funded backlog of $1.1 billion
- Strong bookings of $399.0 million in Q1
“As we complete the first quarter of our new fiscal year, we are excited by the continued strength across both our Autonomous Systems and Space, Cyber and Directed Energy segments with record revenue and backlog. With a broad and diversified portfolio of solutions, we are confident in our ability to deliver best-in-class solutions that are aligned to our customers' highest priorities in all domains across air, land, sea, space and cyber.”
AeroVironment CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2026, AeroVironment maintains revenue guidance of $1.9 billion to $2.0 billion, with first half expected at 45% and second half at 55% of full-year revenue. The company expects a net loss of $(77) million to $(72) million, GAAP loss per diluted share of $(1.63) to $(1.53), non-GAAP adjusted EBITDA of $300 million to $320 million (~16% margin at midpoint), and non-GAAP earnings per diluted share of $3.60 to $3.70. EBITDA margins are expected to trend from 10-12% in Q1 to high-teens by Q4. Adjusted gross margins are expected at 29% to 31%, IRAD at 6% to 7%, and SG&A at 11% to 13% (excluding intangible amortization and deal/integration expenses). Stock-based compensation is projected at approximately $38 million, capital expenditures at 6% to 8% of revenue, and deal and integration expenses of $40 million to $45 million excluding capital expenditures. As of September 9, 2025, the company has 82% visibility to the midpoint of the revenue guidance range.
AVAV YoY Financials
AVAV Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.