Corrected: AeroVironment Q4 revenue more than doubles on acquisitions, higher product sales

AeroVironment

29/06/2026 21:21

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(Corrects second Result Drivers bullet to clarify the figures represent YoY increase, not reported numbers)
Overview
    * U.S. defense tech firm's fiscal Q4 revenue more than doubled yr/yr, driven by acquisitions
    * Adjusted EPS for fiscal Q4 beat analyst expectations
    * Gross margin fell to 32% from 36%, mainly due to higher service revenue and amortization

Outlook
    * AeroVironment expects fiscal 2027 revenue between $2.125 bln and $2.225 bln
    * Company sees fiscal 2027 net income of $8 mln to $24 mln
    * AeroVironment forecasts fiscal 2027 non-GAAP adj EBITDA of $305 mln to $325 mln

Result Drivers
    * ACQUISITIONS - BlueHalo and Empirical Systems Aerospace acquisitions contributed $282.3 mln to Q4 revenue
    * HIGHER PRODUCT AND SERVICE SALES - Q4 revenue rose due to an increase in product sales of $256.7 mln and an increase in service revenue of $109.8 mln YoY
    * GROSS MARGIN PRESSURE - Gross margin percentage fell due to increased service revenue mix and higher amortization expenses

Company press release:  ID:nBwbbRDwCa 
Key Details
 Metric    Beat/Mis  Actual    Consensu
           s                   s
                               Estimate
 Q4        Beat      $1.84     $1.46
 Adjusted                      (16
 EPS                           Analysts
                               )
 Q4 Gross            32%        
 Margin                        
 Q4                  $56.90     
 Operatin            mln       
 g Income                      
 Analyst Coverage
    * The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "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 $300.00, about 117.5% above its June 26 closing price of $137.95
    * The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 58 three months ago

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(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.)