How Is AeroVironment Broadening Its Defense Services Presence?

AeroVironment, Inc. AVAV is gradually expanding beyond its core unmanned systems focus by building a stronger presence in defense services. Instead of relying only on product sales, the company is putting more emphasis on engineering and mission support offerings that help customers operate and sustain complex systems. This shift allows it to stay more closely tied to defense programs over a longer period.

One important area of focus is lifecycle support. AeroVironment is involved in activities such as integration, testing, maintenance and operational assistance, ensuring its systems continue to perform as required after deployment. As defense technologies become more advanced, the need for ongoing technical support is increasing, making these services an essential part of the overall offering.

Another factor supporting this move is the company’s ability to link its products with services. By staying involved from development through deployment and maintenance, the company can play a broader role across defense programs. This not only strengthens its position with existing customers but also opens the door to more consistent, repeat business over time.

With defense agencies placing continued emphasis on system readiness and operational efficiency, demand for dependable support services is likely to remain steady. The company’s growing focus on this area reflects its effort to build a more balanced and durable business model.

Companies Broadening Defense Services Capabilities

As defense systems become more sophisticated, the need for ongoing support and technical expertise continues to rise. Companies like Leidos Holdings, Inc. LDOS and Science Applications International Corporation SAIC are also expanding their presence in this space.

Leidos supports a wide range of defense programs by offering engineering, technical and mission-focused services tailored to government needs.

Science Applications International focuses on system integration, logistics and long-term support solutions that help maintain and operate advanced defense technologies.

Earnings Estimates for AVAV Stock

The Zacks Consensus Estimate for fiscal 2026 and earnings per share suggests a year-over-year decline of 7.62%, and for fiscal 2027, it indicates growth of 23.34%, respectively.

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AVAV Stock Trading at a Discount

AeroVironment is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 4.36X compared with the industry average of 11.73X.

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AVAV Stock Price Performance

In the past year, AVAV shares have surged 55.9% compared with the industry’s 44.9% growth.

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AVAV’s Zacks Rank

AeroVironment currently has a Zacks Rank #5 (Strong Sell).

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AeroVironment, Inc. (AVAV): Free Stock Analysis Report

Science Applications International Corporation (SAIC): Free Stock Analysis Report

Leidos Holdings, Inc. (LDOS): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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