AeroVironment Is Supposed to Be the Next Palantir, But Its Earnings Disappointed in Q2. How Should You Play AVAV Stock?

Core Insights - AeroVironment (AVAV) is experiencing a strong rally of 60% year-to-date, driven by positive fundamental developments, despite a recent correction of 40% from its October 2025 highs of $417 [1][4] - The company is projected to achieve $2 billion in revenue for FY 2026, supported by a robust growth outlook in the aerospace and defense sector [3] Order Intake and Backlog - As of November 2025, AeroVironment reported a funded order backlog of $1.1 billion and an unfunded order backlog of $3.0 billion, indicating strong revenue and growth visibility [5] - The company received orders worth $874 million from the U.S. Army Contracting Command for unmanned aerial systems and counter-UAS systems, further enhancing its order intake [5] Innovation and Product Portfolio - The order intake is expected to remain strong, bolstered by innovation and the expansion of the product portfolio, including the recent acquisition of BlueHalo, which allows exploration in the space-based communication segment [6]