AeroVironment (NASDAQ:AVAV) shares surged about 15% in early trading following the company’s fiscal fourth-quarter results, as investors reacted to stronger-than-expected revenue and earnings, alongside a sharply higher backlog and upbeat defense demand outlook.
AeroVironment (NASDAQ:AVAV) reported Q4 revenue of $641.6 million, a 133% increase from $275.1 million a year earlier and well above Wall Street expectations of about $558 million
The company attributed the jump to higher product and service revenue, as well as contributions from recent acquisitions, including BlueHalo and Empirical Systems Aerospace. Adjusted non-GAAP earnings per diluted share came in at $1.84, compared with consensus estimates of $1.47. Net income for the quarter rose to $63.2 million, or $1.25 per diluted share, compared with $16.7 million, or $0.59 per diluted share, in the prior-year period.
AeroVironment also reported total annual bookings of $2.7 billion, with a book-to-bill ratio of 1.4 for fiscal 2026. Funded backlog increased to $1.2 billion, up 65% year-over-year, which the company said reflects sustained demand across its autonomous systems and defense technology portfolio. “Fiscal 2026 marked a transformational year for AV, which included the completion of our largest acquisition, meaningful investments toward diversifying our portfolio in critical areas aligned to our customer’s highest priorities, and the strongest financial performance in our history,” AeroVironment CEO Wahid Nawabi said in a statement. “We are confident our proven ability to deliver at speed will continue to drive opportunities for AV across our global customer base.” Investors also appeared to be weighing broader sector tailwinds, including proposed increases in U.S. Department of Defense spending, particularly around drone and autonomous systems programs extending into 2027