AeroVironment Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.90%.
Did AVAV Beat Earnings? Q2 2026 Results
AeroVironment delivered a mixed fiscal second quarter for 2026, posting headline revenue growth of 181.9% year-over-year to $472.51 million while falling short on both the top and bottom lines — revenue missed consensus by 2.84% and non-GAAP adjusted EPS of $0.44 came in 40.34% below the $0.74 estimate. The primary culprit was the May 2025 BlueHalo acquisition, which contributed $245.10 million in revenue but brought with it $48.20 million in intangible amortization and purchase accounting charges that <a href="https://247wallst.com/investing/2025/12/10/aerovironment-posts-record-revenue-but-swings-to-67-million-loss-on-integration-costs/">pressured margins sharply</a>, compressing gross margin to 22% from 39% a year earlier. Beneath the earnings miss, however, order momentum was striking — contract awards hit a record ceiling value of $3.50 billion, including an $874 million FMS contract for its UAS and Switchblade systems, driving a 2.9x book-to-bill ratio. A securities fraud investigation following the earnings miss added an unwelcome overhang. Management raised the lower end of full-year revenue guidance to $1.95–$2.00 billion, projecting non-GAAP EPS of $3.40–$3.55 with 93% revenue visibility already in place.
- BlueHalo acquisition closed May 1, 2025 contributing $245.1 million in quarterly revenue
- Legacy AeroVironment revenue grew 21% year-over-year to $227.4 million
- Strong product sales increase of $173.8 million and service revenue increase of $110.2 million
- Record contract awards with ceiling value of $3.5 billion
- Book-to-bill ratio of 2.9x in Q2 and 1.84x year-to-date
“AV is operating from a position of strength as evidenced by our record second quarter results, all-time high bookings and long-term contract wins.”
AeroVironment CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2026, AeroVironment raised the lower end of revenue guidance, now expecting $1.95 billion to $2.0 billion. The company expects GAAP net loss of ($38) million to ($30) million, GAAP loss per diluted share of ($0.76) to ($0.61), non-GAAP adjusted EBITDA of $300 million to $320 million (~15.7% margin at midpoint), and non-GAAP EPS of $3.40 to $3.55. Second-half revenue is expected to be weighted 45% Q3 and 55% Q4, with adjusted EBITDA split 30% Q3 and 70% Q4. Capital expenditures are guided at 6-8% of revenue. IRAD is expected at 6-8% of revenue, adjusted SG&A at 12-14%, stock-based compensation at approximately $38 million, and deal and integration expenses of $37-42 million for the full year. The company has 93% revenue visibility supporting guidance.
AVAV YoY Financials
AVAV Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.