AeroVironment shares jump on strong earnings beat, record backlog and Pentagon spending tailwinds

AeroVironment (NASDAQ:AVAV) shares surged astir 15% successful aboriginal trading pursuing the company's fiscal fourth-quarter results, arsenic investors reacted to stronger-than-expected gross and earnings, alongside a sharply higher backlog and upbeat defence request outlook.

AeroVironment (NASDAQ:AVAV) reported Q4 gross of $641.6 million, a 133% summation from $275.1 cardinal a twelvemonth earlier and good supra Wall Street expectations of astir $558 million.

The institution attributed the leap to higher merchandise and work revenue, arsenic good arsenic contributions from caller acquisitions, including BlueHalo and Empirical Systems Aerospace.

Adjusted non-GAAP net per diluted stock came successful astatine $1.84, compared with statement estimates of $1.47. Net income for the 4th roseate to $63.2 million, oregon $1.25 per diluted share, compared with $16.7 million, oregon $0.59 per diluted share, successful the prior-year period.

AeroVironment besides reported full yearly bookings of $2.7 billion, with a book-to-bill ratio of 1.4 for fiscal 2026. Funded backlog accrued to $1.2 billion, up 65% year-over-year, which the institution said reflects sustained request crossed its autonomous systems and defence exertion portfolio.

"Fiscal 2026 marked a transformational twelvemonth for AV, which included the completion of our largest acquisition, meaningful investments toward diversifying our portfolio successful captious areas aligned to our customer's highest priorities, and the strongest fiscal show successful our history," AeroVironment CEO Wahid Nawabi said successful a statement.  

"We are assured our proven quality to present astatine velocity volition proceed to thrust opportunities for AV crossed our planetary lawsuit base."

Investors besides appeared to beryllium weighing broader assemblage tailwinds, including projected increases successful U.S. Department of Defense spending, peculiarly astir drone and autonomous systems programs extending into 2027.