Is AeroVironment Inc a Buy After Its Latest Earnings Report?

AeroVironment (AVAV) reported fiscal 2026 Q4 revenue of $641.6M, doubling year-over-year, and net income of $63M, both crushing analyst expectations. The drone and tactical missile systems maker's backlog expanded to $1.2B, signaling sustained demand for its products.

Management guided fiscal 2027 revenue between $2.13B and $2.23B. The quarter's performance reflected organic growth alongside contributions from recent M&A activity, including the acquisitions of BlueHalo and Empirical Systems Aerospace. Both deals expand AeroVironment's capabilities in autonomous systems and aerospace technology.

The revenue doubling marks a significant inflection point for AVAV, which has traditionally operated at a smaller scale. The $1.2B backlog provides near-term revenue visibility, while the fiscal 2027 guidance suggests management expects the elevated growth trajectory to continue. The guidance range represents roughly 230-250% growth over fiscal 2026 levels, assuming comparable prior-year revenue.