AeroVironment Inc
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.44%.
Did AVAV Beat Earnings? Q3 2026 Results
AeroVironment delivered a disappointing fiscal Q3 2026, missing on both top and bottom lines as <a href="https://247wallst.com/investing/2026/03/10/live-will-aerovironment-avav-beat-q3-earnings-tonight/">analysts had been watching closely</a> heading into the report. Revenue of $408.05 million fell 14.21% short of the $475.65 million consensus, though it still represented a striking 143.4% year-over-year gain, while non-GAAP EPS of $0.64 missed the $0.69 estimate by 7.39%, extending the company's miss streak to three consecutive quarters. The primary culprit was the Space, Cyber and Directed Energy segment, where a stop-work order on the BADGER SCAR program triggered a $151.31 million goodwill impairment and pushed SCDE revenue sharply lower sequentially. The Autonomous Systems segment provided an offset, generating $278.74 million in quarterly revenue on strong Switchblade and uncrewed aircraft demand. Looking ahead, AeroVironment trimmed its full-year FY2026 revenue guidance to $1.85 billion to $1.95 billion, though management pointed to record funded backlog of $1.10 billion and a 1.6x book-to-bill ratio as evidence that demand fundamentals remain intact heading into what it characterized as a record fourth quarter.
- 38% organic year-over-year revenue growth
- Strong AxS segment performance driven by Precision Strike & Defensive Systems and Uncrewed Aircraft Systems
- BlueHalo acquisition contributed $85.1M in product revenue and $91.4M in service revenue
- Record funded backlog of $1.1 billion
- Year-to-date bookings of $2.1 billion with 1.6x book-to-bill ratio
“While our third quarter results were impacted by revenue timing and adjustments in our Space business, demand for our unique solutions remains robust.”
AeroVironment CEO, on the earnings call
Forward Guidance & Outlook
AeroVironment lowered its FY2026 full-year guidance due to order timing and lower-than-anticipated contributions from SCDE. The company now expects revenue of $1.85B to $1.95B (down from $1.90B-$2.00B), GAAP net loss of ($218M) to ($201M), non-GAAP adjusted EBITDA of $265M to $285M (~14.5% margin at midpoint), and non-GAAP EPS of $2.75 to $3.10. Q4 adjusted EBITDA as a percentage of revenue is expected to be 21-24%. Capital expenditures are guided at 5-7% of revenue. Deal and integration expenses are expected at $40M-$45M for the full year. IRAD is expected at 6-7% of revenue and adjusted SG&A at 12-14%. Management indicated record funded backlog and strong order flow are setting the stage for record Q4 revenue and a solid start to FY2027.
AVAV YoY Financials
AVAV Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.