AeroVironment (AVAV) Posts Fiscal Q2 2026 Results, Stock Down More Than 3.88% Since the Release

Core Insights - AeroVironment, Inc. reported a significant revenue growth of 150.72% year-over-year, reaching $472.51 million, but the EPS of $0.44 fell short of expectations by $0.35 [2] - The company raised its full-year revenue guidance to a range of $1.95 billion to $2 billion, while the net loss is expected to improve to between $38 million and $30 million [3] - AeroVironment secured a five-year contract worth $874.26 million from the US Army, which will support future foreign military sales and allow flexible orders of unmanned aerial systems [4][5] Financial Performance - Revenue grew to $472.51 million, exceeding estimates by $6.88 million, with BlueHalo contributing $245.1 million and legacy revenue at $227.4 million, reflecting a 22% year-over-year growth [2] - Gross margin increased from $73.6 million to $104.1 million, a 41% rise, although impacted by $24.2 million in intangible amortization and related non-cash expenses [2] Guidance and Expectations - The updated full-year revenue guidance is an increase from the previous range of $1.9 billion to $2.0 billion, while the net loss guidance shows improvement from $77 million to $72 million [3] - Despite the positive adjustments, the guidance fell short of Wall Street expectations, with the midpoint of revenue missing by $0.03 billion and EPS by $0.14 [3] Contract and Market Position - The awarded contract includes a range of UAS systems and counter-UAS systems, along with training, initial spare parts, and logistical support [5] - The stock has shown strong performance, returning over 81% year-to-date [5]