AeroVironment Earnings Lift Revenue Visibility

AeroVironment, Inc. (NASDAQ: AVAV) reported on June 29, 2026, record fourth-quarter and full-year results that boosted revenue visibility. The company’s outlook signaled slower growth and heavier capital spending as it expands manufacturing capacity.

Record Results and Bookings

On June 29, AeroVironment issued a press release, filed a Form 8-K, and submitted its Form 10-K reporting results for the quarter and fiscal year ended April 30, 2026. The company recorded fourth-quarter revenue of $642 million, up 133% from $275 million a year earlier. The increase reflected higher product and service sales, with product revenue rising by $257 million and service revenue by $110 million. Management described the quarter as roughly 30% pro forma growth and about 31% organic growth, excluding acquisition effects.

Profitability improved on both GAAP and adjusted measures. GAAP net income was $63 million, or $1.25 per diluted share, compared with $17 million, or $0.59 per share, in the prior-year quarter. Gross margin dollars reached $203 million, though the margin rate declined to 32% from 36% due to a higher service mix and non-cash purchase accounting costs. On a non-GAAP basis, adjusted EBITDA was $140 million and diluted EPS was $1.84, up from $1.61 and about 24% above the consensus estimate.

For the full fiscal year, revenue rose 141% to $2.0 billion from $821 million. Product revenue increased by $723 million and service revenue by $434 million. The acquisitions of BlueHalo and Empirical Systems Aerospace contributed about $526 million of the product increase and roughly $413 million of the service increase.

GAAP results reflected large acquisition-related non-cash charges. The company posted a net loss of $265 million, or $5.40 per share, driven mainly by a $241 million goodwill impairment and significant intangible amortization and purchase accounting charges. Cost of sales included about $93 million of intangible amortization and related non-cash items. On a non-GAAP basis, adjusted EBITDA was $286 million, with a margin near 14%, and diluted EPS was $3.31, above the top end of prior guidance.

AeroVironment reported $2.7 billion in bookings for the year, implying a book-to-bill ratio of 1.4, and a funded backlog of $1.2 billion as of April 30, up from $727 million a year earlier. The funded backlog provides line-of-sight to near-term revenue.

The Autonomous Systems segment generated $1.4 billion in revenue, up $538 million (65%), driven by higher product sales (about $450 million) and service work (about $87 million).

Guidance and Capital Plans

For fiscal 2027, the company guided revenue to $2.1 billion–$2.2 billion, GAAP net income to $8 million–$24 million, adjusted EBITDA to $305 million–$325 million, GAAP EPS to $0.16–$0.48, and non-GAAP EPS to $3.02–$3.34. The midpoint implies roughly 10% year-over-year growth versus FY26, with revenue expected to be back-half weighted—about 45% in the first half and 55% in the second—as programs and production ramps phase in. Management characterized visibility at the midpoint at roughly 69%, based on bookings, backlog, and quarter-to-date orders.

The company signaled elevated capital spending for FY27 to expand manufacturing capacity, planning capital expenditures of roughly 12%–14% of revenue versus about 5% in FY26. Higher depreciation tied to these investments will weigh on non-GAAP earnings in the near term.

Executives flagged potential timing risks from U.S. government continuing resolutions and the timing of defense appropriations, which could affect the cadence of orders and revenue recognition in FY27.

Record annual bookings and a larger funded backlog provide near-term revenue visibility even as the FY27 outlook signals slower growth and heavier capital spending. These dynamics place backlog cadence and execution at the center of near-term investor focus.