SIMI VALLEY, CALIFORNIA — AeroVironment reported fourth-quarter earnings of $1.84 per share on revenue of $642 million, exceeding analyst estimates. The company provided fiscal year 2027 revenue guidance ranging from $2.13 billion to $2.23 billion.

The fourth-quarter earnings of $1.84 per share surpassed the LSEG analyst estimate of $1.46 per share. Revenue of $642 million exceeded the analyst estimate of $559 million. Autonomous systems revenue reached $492 million, compared to StreetAccount's estimate of $402 million.

AeroVironment's funded backlog increased 65% year-over-year to $1.2 billion, up from $1.1 billion in the prior period. The company posted net income of $63.17 million in the fourth quarter of 2026, with earnings of $1.25 per share. This compares to net income of $16.66 million and earnings of 59 cents per share in the fourth quarter of the prior year.

For fiscal year 2027, AeroVironment projects adjusted earnings per share between $3.02 and $3.34. LSEG analysts had anticipated fiscal year 2027 revenue of $2.17 billion and adjusted earnings per share of $3.94.

AeroVironment CEO Wahid Nawabi stated that conflicts in Ukraine and Iran have changed the fundamentals of warfare. "We knew that this inflection point was going to happen sooner or later," Nawabi said. "Not only the U.S. Department of War, but all of our allies are behind the eight ball in terms of adoption and deployment," he said. "Now we're playing catch-up. Our military is playing catch-up in a very fast pace."

AeroVironment stock rose 19% on Monday. The company's shares have decreased more than 40% during the current year.

Why It Matters

AeroVironment's reported earnings and revenue for the fourth quarter surpassed analyst expectations, leading the company to issue new guidance for fiscal year 2027. The increase in the company's funded backlog indicates potential future business. The CEO's comments regarding changes in warfare fundamentals provide context for the company's strategic outlook and the demand for its products.