Key Stats for AVAV Stock
- Price Change for AeroVironment stock: 16%
- Current Share Price: $272
- 52-Week High: $272
- AVAV Stock Price Target: $202
What Happened?
AeroVironment (AVAV) stock is up 40% in the last two trading sessions after the defense drone manufacturer delivered a knockout fourth-quarter earnings beat that exceeded Wall Street expectations on both revenue and profits.
AVAV stock reported adjusted earnings of $1.61 per share, beating the $1.39 consensus estimate, while revenue of $275 million surpassed expectations of $242 million.
The momentum gained additional fuel when CNBC’s Jim Cramer dubbed AeroVironment “the Palantir of hardware” on “Squawk on the Street,” highlighting the company’s position as a leading provider of defense technology with cutting-edge autonomous systems.
The stellar quarter capped off a record fiscal year 2025, with total revenue reaching $820.6 million, representing 14% growth despite reduced sales in Ukraine.
Most impressively, AeroVironment secured $1.2 billion in total bookings throughout the year, ending with a record funded backlog of $726 million, an 82% increase from the prior year.
A key catalyst for investor excitement is AeroVironment’s recently completed $4.1 billion acquisition of BlueHalo, which closed on May 1.
This transformative deal adds space technology, directed energy weapons, electronic warfare, and cyber capabilities to AeroVironment’s existing drone portfolio, positioning the company as a comprehensive defense technology prime contractor.
See AVAV’s full analyst estimates, earnings results, and earnings transcript (It’s free) >>>
AeroVironment’s Loitering Munition Systems (LMS) business, featuring the battle-proven Switchblade drone family, drove exceptional growth with Q4 revenue surging 87% to $138 million.
AeroVironment secured a historic $1 billion sole-source Army contract for Switchblade products and is now shipping to eight countries with another eight allies in the procurement pipeline.
What the Market Is Telling Us About AVAV Stock
The explosive rally in AVAV stock reflects Wall Street’s growing confidence in AeroVironment’s transformation from a specialized drone maker into a diversified defense technology powerhouse.
The BlueHalo acquisition creates an “all-domain” portfolio spanning air, land, sea, space, and cyber, directly aligned with Pentagon priorities and the Army’s modernization initiatives.
For fiscal 2026, management provided robust guidance of $1.9-2 billion in revenue and $2.80-3.00 in earnings per share, representing approximately 15% growth over pro forma combined results.
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Investors are particularly excited about AVAV stock due to its position in high-growth defense categories, including autonomous drones, counter-drone systems, loitering munitions, and space communications.
With the Pentagon emphasizing these exact capabilities in its modernization strategy, AeroVironment appears well-positioned to capitalize on increased defense spending and evolving warfare requirements.
The combination of record financial performance, transformative acquisition integration, and strong forward guidance suggests this defense technology leader is entering a new phase of accelerated growth and market expansion.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!