AeroVironment (NASDAQ:AVAV) Updates FY 2026 Earnings Guidance

AeroVironment (NASDAQ:AVAV) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 2.750-3.100 for the period, compared to the consensus earnings per share estimate of 3.280. The company issued revenue guidance of $1.9 billion-$2.0 billion, compared to the consensus revenue estimate of $2.0 billion.

AeroVironment Trading Down 6.2%

AVAV opened at $207.73 on Thursday. The firm has a market capitalization of $10.37 billion, a price-to-earnings ratio of -47.86, a price-to-earnings-growth ratio of 3.51 and a beta of 1.26. The company’s 50 day simple moving average is $282.58 and its two-hundred day simple moving average is $292.68. AeroVironment has a 1-year low of $102.25 and a 1-year high of $417.86. The company has a debt-to-equity ratio of 0.16, a current ratio of 5.08 and a quick ratio of 4.29.

AeroVironment (NASDAQ:AVAV) last announced its quarterly earnings data on Tuesday, March 10th. The aerospace company reported $0.64 EPS for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.08). AeroVironment had a positive return on equity of 3.52% and a negative net margin of 13.93%.The company had revenue of $408.05 million for the quarter, compared to analysts’ expectations of $487.94 million. During the same quarter in the previous year, the business posted $0.30 EPS. The business’s quarterly revenue was up 143.4% compared to the same quarter last year. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS. Analysts expect that AeroVironment will post 3.38 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on AVAV shares. BNP Paribas Exane initiated coverage on shares of AeroVironment in a report on Tuesday, November 18th. They issued an “outperform” rating and a $355.00 target price on the stock. Citigroup reissued a “market outperform” rating on shares of AeroVironment in a research report on Monday, January 12th. Needham & Company LLC dropped their price objective on shares of AeroVironment from $450.00 to $400.00 and set a “buy” rating for the company in a report on Wednesday. Piper Sandler lowered their target price on AeroVironment from $391.00 to $290.00 and set an “overweight” rating for the company in a research note on Tuesday, March 3rd. Finally, Royal Bank Of Canada lowered their price objective on AeroVironment from $325.00 to $250.00 and set an “outperform” rating for the company in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, one has issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $329.89.

Insider Activity at AeroVironment

In other AeroVironment news, CFO Kevin Patrick Mcdonnell sold 396 shares of the business’s stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $224.55, for a total value of $88,921.80. Following the completion of the sale, the chief financial officer owned 16,026 shares in the company, valued at approximately $3,598,638.30. The trade was a 2.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Stephen F. Page sold 250 shares of the business’s stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $300.00, for a total transaction of $75,000.00. Following the completion of the transaction, the director directly owned 50,001 shares in the company, valued at $15,000,300. This represents a 0.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 4,474 shares of company stock valued at $1,390,404 over the last ninety days. Insiders own 0.81% of the company’s stock.

Key AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Ongoing defense demand and strategic positioning could support long‑term upside — analysts and commentary note strong secular demand for drones/C‑UAS and AeroVironment’s product set (Titan RF, counter‑drone tech) as a tailwind. KeyBanc Flags AeroVironment (AVAV) as Top Iran Conflict Winner
• Positive Sentiment: MarketBeat frames the pullback as a value opportunity given a still‑healthy balance sheet, backlog and institutional buying; this view supports a potential rebound if execution and contract clarity improve. AeroVironment Touches Down On Value Opportunity
• Neutral Sentiment: Corporate insider activity — the CFO sold 396 shares (SEC filing). Small in size but worth noting for active traders who monitor insider transactions. SEC Form 4 – Kevin Patrick McDonnell
• Negative Sentiment: Q3 results missed expectations: revenue of ~$408M (vs. ~\$488M est.) and adjusted EPS of $0.64 missed consensus; management cut FY2026 adjusted EPS guidance to $2.75–$3.10 and trimmed revenue guidance — the core reason for the selloff. AeroVironment Shares Plunge on Q3 Miss and Weak Outlook
• Negative Sentiment: Material contract uncertainty: reports highlight potential termination/uncertainty around the SCAR program and exposure tied to a ~$1.7B Space Force contract — a direct hit to revenue visibility. AeroVironment (AVAV) Stock Plunges 9% on Q3 Miss and $1.7B Contract Uncertainty
• Negative Sentiment: New debt issuance: AeroVironment disclosed $727M in notes which raises leverage, tightens covenants and increases liquidity risk — a balance‑sheet factor investors may view unfavorably while revenue visibility is reduced. AeroVironment’s $727 Million Notes Raise Leverage, Tighten Covenants and Heighten Liquidity Risk
• Negative Sentiment: Analyst targets and ratings were trimmed across multiple firms (Stifel, RBC, KeyBanc, UBS, others), reflecting reduced near‑term expectations and weighing on sentiment. Analyst Price Target Moves (Benzinga roundup)
• Negative Sentiment: Investor litigation alert: a law firm announced an investigation into shareholder claims, which adds legal/overhang risk. Pomerantz Investor Alert

Institutional Investors Weigh In On AeroVironment

Several institutional investors have recently made changes to their positions in AVAV. Marshall Wace LLP increased its holdings in shares of AeroVironment by 4,770.1% in the 4th quarter. Marshall Wace LLP now owns 260,207 shares of the aerospace company’s stock valued at $62,941,000 after purchasing an additional 254,864 shares in the last quarter. Franklin Resources Inc. grew its position in AeroVironment by 3,880.9% during the third quarter. Franklin Resources Inc. now owns 206,607 shares of the aerospace company’s stock worth $65,058,000 after buying an additional 201,417 shares during the period. Bank of America Corp DE grew its position in AeroVironment by 2,668.1% during the third quarter. Bank of America Corp DE now owns 148,927 shares of the aerospace company’s stock worth $46,896,000 after buying an additional 154,726 shares during the period. Renaissance Technologies LLC purchased a new position in AeroVironment in the fourth quarter valued at about $27,299,000. Finally, Northern Trust Corp lifted its position in shares of AeroVironment by 30.7% during the 3rd quarter. Northern Trust Corp now owns 380,899 shares of the aerospace company’s stock valued at $119,941,000 after acquiring an additional 89,503 shares during the period. 86.38% of the stock is currently owned by hedge funds and other institutional investors.

About AeroVironment

AeroVironment, Inc (NASDAQ:AVAV) is a technology company specializing in unmanned aerial systems (UAS), tactical missiles and precision loitering munitions, electric vehicle charging and scalable energy systems. Headquartered in Monrovia, California, the company develops solutions for defense, public safety and commercial markets. Their offerings include small UAS for intelligence, surveillance and reconnaissance, as well as advanced weapons systems designed to meet the needs of modern military operations.

The company’s unmanned aerial systems portfolio features platforms such as the Raven, Puma and Switchblade series, which are deployed by the U.S.