AVAV Stock Rises Overnight: AeroVironment Bets On 'Under $10 Per Shot' High-Energy Laser Weapon Systems

Investors focused on AeroVironment’s LOCUST laser system, strong Q1 results, and growing international demand for low-cost counter-drone technology.

• AeroVironment secured a nearly $465 million U.S. Army laser contract and its first international LOCUST order worth over $50 million. 
• CEO Wahid Nawabi said demand is growing for affordable laser defenses against drone attacks, with LOCUST costing under $10 per shot. 
• AeroVironment’s funded backlog rose 37% to a record $1.5 billion, while Q1 revenue reached $480 million. 

AeroVironment Inc. (AVAV) stock rose overnight as investors weighed the defense contractor’s growing push into high-energy laser weapons after a strong fiscal first-quarter (Q1) 2027 earnings. CEO Wahid Nawabi highlighted LOCUST systems that cost “under $10 per shot,” alongside a nearly $465 million U.S. Army award and a record $1.5 billion funded backlog. 

AeroVironment stock traded nearly 4% higher overnight Wednesday. 

AeroVironment’s Under-$10 Laser Shots Target Low-Cost Drone Threats 

In the Q1 earnings call, Nawabi highlighted major wins for AeroVironment’s LOCUST laser system, including a nearly $465 million U.S. Army award announced in late August. The deal covers the Army's enduring high-energy laser, or E-HEL, program and marks what the CEO described as the first production contract for directed-energy systems in U.S. military history.

“This is a defining moment, not only for our company but also for our customers, our country and the advancements of laser weapons technology as a critical tool in modern war pair.”

The company also announced its first international order for the LOCUST laser weapon system, worth more than $50 million. Nawabi said the sale signals rising interest in high-powered laser defenses as militaries look for economical ways to counter large numbers of relatively inexpensive drones.

“Under $10 per shot, LOCUST redefines the cost balance between offensive and deepness of systems and provides the war fighter with an essentially unlimited magazine.”

AeroVironment’s Backlog Reaches Record

The company's broader defense business also entered the new fiscal year with strong demand. Funded backlog climbed 37% year-on-year to a record $1.5 billion, giving AeroVironment substantial visibility into future revenue. Q1 revenue reached a company record of $480 million. Management is also expanding manufacturing capacity across several product lines, with a $100 million long-term investment at its Southern California facilities. 

Despite the rapid expansion, AeroVironment maintained its fiscal 2027 revenue forecast at $2.125 billion to $2.225 billion. 

AVAV Stock: Retail View 

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. The stock saw a 355% increase in message volume over the past week with a 4% gain in watchers. 

A user said, “In a normal market this would be 180 after the call. but this market wants drones red and chips green…”

Another user said, “The funding they need will get approved. It's just a timing issue. March funding lag is just DoD budget timing, not a demand problem.” 

AVAV stock has crashed 41% year-to-date. 

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