AeroVironment Q1 results beat estimates on higher product and service sales growth

AeroVironment

09/09/2026 21:21

Overview
U.S. defense tech firm's fiscal Q1 revenue rose 6%, beating analyst expectations
Adjusted EPS for fiscal Q1 beat consensus, rising to $0.59 from $0.32 last yr
Company's net loss narrowed, driven by higher gross margin and lower operating expenses

Outlook
AeroVironment maintains fiscal 2027 revenue guidance of $2.125 bln to $2.225 bln
Company expects fiscal 2027 net income of $10 mln to $27 mln
AeroVironment sees fiscal 2027 non-GAAP EPS of $3.02 to $3.34

Result Drivers
HIGHER PRODUCT AND SERVICE SALES - Co said Q1 revenue growth was due to increased product sales of $15.5 mln and higher service revenue of $10.3 mln
LOWER NON-CASH EXPENSES - Gross margin improvement was primarily due to a decrease in intangible amortization and other non-cash purchase accounting expenses
REDUCED OPERATING EXPENSES - Co attributed lower operating loss to decreased selling, general and administrative expense, including lower acquisition-related and amortization costs, and reduced R&D expense

Company press release: ID:nBw8TspXWa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$480.50 mln
$456.20 mln (17 Analysts)
Q1 Adjusted EPS
Beat
$0.59
$0.25 (16 Analysts)
Q1 Gross Margin
 
26%
 
Q1 Operating Income
 
-$10.90 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for AeroVironment, Inc. is $229.50, about 54.3% above its September 8 closing price of $148.78
The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 51 three months ago

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Sept 8 - UK's James Fisher H1 revenue up 2.1% on defence product  lines demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)