Aerovironment 2026 Q2 Earnings Record Revenue Amid Net Loss

Aerovironment (AVAV) reported a 150.7% year-over-year revenue surge to $472.51 million in Q2 2026, exceeding expectations. However, the company swung to a $0.34 per share loss, missing guidance, and raised full-year revenue projections to $1.95–$2 billion.

Revenue

Aerovironment’s Q2 revenue surged 150.7% year-over-year to $472.51 million, driven by robust demand across its product lines and contract services. Product sales accounted for $325.04 million, reflecting strong performance in unmanned systems and related technologies, while contract services contributed $147.47 million. The total revenue surpassed $470.29 million in estimates, underscoring the company’s ability to capitalize on defense and commercial contracts.

Earnings/Net Income

The company reported a net loss of $17.10 million, or $0.34 per share, in Q2 2026, marking a 326.7% deterioration from a $7.54 million profit in the prior-year period. The adjusted EPS of $0.44 fell short of the $0.79 consensus, as acquisition costs and operational challenges weighed on profitability. This stark decline highlights the pressure on margins despite record revenue.

Post-Earnings Price Action Review

The strategy of buying AVAV when revenues miss and holding for 30 days delivered strong results, with a 160.66% return, significantly outperforming the benchmark return of 86.69%. The strategy’s excess return of 73.97% and a CAGR of 21.25% underscore its growth potential, while a 0.00% maximum drawdown suggests a risk-averse profile.

CEO Commentary

Wahid Nawabi, CEO, emphasized Aerovironment’s $1.4 billion in Q2 bookings and $3.5 billion in contract awards, citing strategic investments in R&D and manufacturing. He highlighted the Salt Lake City facility for Switchblade systems and expressed confidence in scaling production amid U.S. defense modernization trends.

Guidance

AeroVironment raised FY2026 revenue guidance to $1.95–$2 billion, with 93% visibility to the midpoint. Adjusted EBITDA is projected at $300–$320 million, and non-GAAP EPS at $3.40–$3.55. Management anticipates 70% of second-half EBITDA to materialize in Q4, with gross margins improving to the high 30s by year-end.

Additional News

AeroVironment secured a $4.8 million contract with the U.S. Coast Guard for Mission Specialist Defender ROVs, enhancing its portfolio in underwater defense systems. Separately, the company was awarded an $874 million IDIQ contract by the U.S. Army for UAS and C-UAS solutions, underscoring its role in modernizing military capabilities. CEO Wahid Nawabi also announced a new Salt Lake City facility to scale Switchblade production, aligning with surging demand for agile, commercially driven defense solutions.