Chief Executive Wahid Nawabi said fiscal 2027 “is off to a strong start, with record first-quarter revenue and funded backlog and landmark strategic wins.”

  • The company’s priority is expanding manufacturing capacity across its sites and strengthening the supply chain to meet customer timelines, the CEO said. 
  • Management left full-year guidance unchanged: revenue of $2.125 billion to $2.225 billion, adjusted core profit of $305 million to $325 million, and adjusted earnings of $3.02 to $3.34 a share.
  • Results remain weighted toward the second half.


AeroVironment Inc. (AVAV) shares jumped as much as 7% after-hours on Wednesday, reversing a regular-session drop, after the defense technology company that makes military drones, loitering munitions and laser weapons beat estimates on revenue and adjusted earnings and reaffirmed full-year guidance.

Investors focused on record first-quarter revenue of $480.5 million, up 6% from a year earlier and above the roughly $456 million consensus, plus adjusted earnings of $0.59 a share versus about $0.25 expected. Bookings of $700 million lifted funded backlog to a record $1.5 billion, up 37% year over year. Autonomous Systems segment revenue rose to $346 million while Space, Cyber and Directed Energy segment fell to $134.5 million. Adjusted core profit was $53.4 million.

Outlook And Capacity Expansion

Chief Executive Wahid Nawabi said fiscal 2027 “is off to a strong start, with record first-quarter revenue and funded backlog and landmark strategic wins.” Customers “are continuing to field autonomous capabilities at increasing scale,” he said, and the company’s priority is expanding manufacturing capacity across its sites and strengthening the supply chain “so we can deliver for our customers at the speed their missions require.”

That push showed up in spending. Capital expenditures on property and equipment rose to $44 million in the quarter from $22.7 million a year earlier.

Management left full-year guidance unchanged: revenue of $2.125 billion to $2.225 billion, adjusted core profit of $305 million to $325 million, and adjusted earnings of $3.02 to $3.34 a share. Results remain weighted toward the second half.

Recent Contract Wins

The results announcement follows several large awards. Earlier this month, the Army awarded AeroVironment a $464.8 million production contract for LOCUST X3 high-energy lasers under the Enduring-High Energy Laser program, the first U.S. production contract for such weapons. A day before earnings, the company booked its first international LOCUST order, valued at more than $50 million.

Earlier wins include a $117.3 million Army contract in July for 82 P550 eVTOL drones and a $51 million August order for Switchblade 600 loitering munitions. The company is investing to expand production, including in Albuquerque and a planned Southern California campus.

How Did AVAV Retail Traders React?

On Stocktwits, retail sentiment around AVAV stock stayed within the extremely bullish territory over the past 24 hours, while message volume rose from high to extremely high levels.

A Stocktwits user expected an increase in forecasts, owing to the company’s backlog.

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Another user said the stock is overvalued for the earnings and guidance it put forth on Wednesday.

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AVAV stock has fallen 42% year-to-date. 

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