Defense technology company posts robust revenue growth, expanding backlog, and stronger-than-expected guidance as demand for autonomous systems accelerates
AeroVironment (AVAV) delivered a strong quarterly earnings report, surpassing Wall Street expectations on both revenue and profitability while issuing an upbeat outlook for fiscal 2027 that reflects continued momentum across its defense technology business.
The company reported quarterly revenue of $642 million, well above analysts’ expectations of $559 million. Adjusted earnings per share came in at $1.85, comfortably beating the consensus estimate of $1.47, while adjusted EBITDA reached $140 million, exceeding forecasts of $126 million.
The results underscore growing demand for AeroVironment’s portfolio of autonomous systems, loitering munitions, and defense technologies amid rising global military spending. The company’s funded backlog climbed to $1.2 billion, representing a 65% year-over-year increase, providing strong revenue visibility for future quarters.
AeroVironment also reported $2.7 billion in bookings, resulting in a healthy book-to-bill ratio of 1.4x. A ratio above 1.0 indicates the company continues to secure new business faster than it recognizes revenue, signaling sustained demand and a strong pipeline of future contracts.
Looking ahead, management raised its fiscal 2027 outlook. The company expects revenue of approximately $2.2 billion, significantly above Wall Street’s estimate of $1.9 billion, while forecasting earnings per share of $3.17, ahead of the consensus estimate of $2.87. The only softer point in the guidance was EBITDA, projected at $315 million, compared with analyst expectations of $345 million.
Overall, the earnings report reinforces AeroVironment’s position as a leading supplier of next-generation defense and autonomous technologies. With record bookings, a rapidly expanding backlog, and revenue guidance well above expectations, the company appears well positioned to benefit from the continued modernization of defense capabilities worldwide.
