AeroVironment surges 17% on Q4 earnings beat and record backlog

AeroVironment reported Q4 revenue of $642 million, more than double a year earlier and above the $559 million analyst estimate.

"The fundamentals of warfare have changed due to recent conflicts in Ukraine and Iran," Chief Executive Officer Wahid Nawabi said during a tour of the company's Simi Valley, California, facility.

Earnings came in at $1.84 per share, beating the $1.46 consensus compiled by LSEG. Autonomous systems revenue, the company's largest segment, reached $492 million, topping the $402 million StreetAccount estimate. The funded backlog of $1.2 billion rose 65% year over year, though it grew only slightly from $1.1 billion in the prior quarter.

Shares surged 17% in extended trading, reversing a difficult stretch for the stock. The company's acquisitions of BlueHalo and Empirical Systems Aerospace contributed to the record quarterly revenue.

Nawabi said AeroVironment is well positioned to benefit from rising global demand for drones, counter-drone systems and space technology. "We knew that this inflection point was going to happen sooner or later," he said, "and these last couple of conflicts that have become globally well known has essentially brought this thing to the forefront."

For fiscal 2027, revenue guidance aligned closely with analyst expectations, though the company's projected adjusted earnings per share came in below Wall Street consensus, pointing to caution on profitability.

The earnings beat and backlog growth confirm that AeroVironment is capturing demand from shifting military priorities. Investors will watch the company's Q1 results for signs of continued momentum in autonomous systems and margin expansion from the recent acquisitions.

This article is for informational purposes only and does not constitute investment advice.