AeroVironment (NASDAQ:AVAV) Trading Down 2.5% After Earnings Miss

AeroVironment, Inc. (NASDAQ:AVAV)’s stock price was down 2.5% on Tuesday following a dissappointing earnings announcement. The stock traded as low as $220.90 and last traded at $221.57. Approximately 1,952,699 shares were traded during mid-day trading, an increase of 3% from the average daily volume of 1,902,694 shares. The stock had previously closed at $227.29.

The aerospace company reported $0.64 EPS for the quarter, missing the consensus estimate of $0.72 by ($0.08). The business had revenue of $408.05 million for the quarter, compared to analysts’ expectations of $487.94 million. AeroVironment had a positive return on equity of 3.42% and a negative net margin of 5.08%.AeroVironment’s quarterly revenue was up 143.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.30 earnings per share. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS.

Trending Headlines about AeroVironment

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Revenue surged 143% year-over-year in the quarter, showing strong top-line growth despite the miss — a sign demand remains elevated for drone products. AeroVironment (NASDAQ:AVAV) Misses Q4 CY2025 Sales Expectations, Stock Drops
• Positive Sentiment: Company is expanding counter-drone/C-UAS capabilities (Titan RF, AI sensing, kinetic interceptors), which could drive future contract opportunities as militaries boost C-UAS spending. How Is AeroVironment Expanding Its Counter-Drone Defense Capabilities?
• Neutral Sentiment: Press release and slide deck published with full Q3 details (adjusted EPS $0.64; GAAP loss due to impairment). Investors can review the deck for order timing and backlog details. AeroVironment Q3 Press Release / Slide Deck
• Negative Sentiment: Q3 revenue ($408.05M) and adjusted EPS ($0.64) missed Street estimates; revenue shortfall and EPS miss drove the immediate negative reaction. AeroVironment (AVAV) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Company cut FY26 adjusted EPS guidance to $2.75–$3.10 (from $3.40–$3.55) and set revenue guidance around $1.9–$2.0B; guidance is below consensus and cited “timing issues,” amplifying investor concerns about near-term execution. AeroVironment Cuts Guidance, Says Timing Issues Hurt Results
• Negative Sentiment: Pomerantz announced an investor investigation into AVAV, which can increase legal risk and add to short-term volatility. Pomerantz Law Firm Investigates Claims On Behalf of Investors of AeroVironment, Inc.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. KeyCorp upped their price objective on shares of AeroVironment from $285.00 to $330.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 28th. BNP Paribas Exane assumed coverage on shares of AeroVironment in a research note on Tuesday, November 18th. They issued an “outperform” rating and a $355.00 price target for the company. Cantor Fitzgerald decreased their price target on shares of AeroVironment from $335.00 to $315.00 and set an “overweight” rating on the stock in a report on Wednesday, December 10th. JPMorgan Chase & Co. began coverage on shares of AeroVironment in a research report on Tuesday, February 17th. They set an “overweight” rating and a $320.00 price objective on the stock. Finally, Citizens Jmp reiterated a “market outperform” rating and issued a $400.00 target price on shares of AeroVironment in a research report on Thursday, February 12th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $348.33.

Insider Activity

In related news, CAO Brian Charles Shackley sold 200 shares of AeroVironment stock in a transaction on Tuesday, December 30th. The shares were sold at an average price of $250.92, for a total value of $50,184.00. Following the transaction, the chief accounting officer owned 5,994 shares in the company, valued at $1,504,014.48. This trade represents a 3.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Stephen F. Page sold 250 shares of the business’s stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $300.00, for a total transaction of $75,000.00. Following the completion of the sale, the director directly owned 50,001 shares of the company’s stock, valued at $15,000,300. This represents a 0.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 4,078 shares of company stock valued at $1,301,482. Corporate insiders own 0.81% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. N.E.W. Advisory Services LLC lifted its stake in shares of AeroVironment by 60.0% in the 3rd quarter. N.E.W. Advisory Services LLC now owns 80 shares of the aerospace company’s stock valued at $25,000 after acquiring an additional 30 shares during the last quarter. AlphaQuest LLC bought a new position in AeroVironment during the 3rd quarter worth approximately $25,000. Tema Etfs LLC purchased a new position in AeroVironment in the 4th quarter worth approximately $26,000. Hilton Head Capital Partners LLC purchased a new position in AeroVironment in the 4th quarter worth approximately $26,000. Finally, TD Waterhouse Canada Inc. lifted its position in AeroVironment by 100.0% in the third quarter. TD Waterhouse Canada Inc. now owns 80 shares of the aerospace company’s stock valued at $28,000 after purchasing an additional 40 shares during the last quarter. 86.38% of the stock is owned by institutional investors.

AeroVironment Stock Down 2.5%

The stock has a market cap of $11.06 billion, a P/E ratio of -177.26, a P/E/G ratio of 3.60 and a beta of 1.26. The company has a quick ratio of 4.29, a current ratio of 5.08 and a debt-to-equity ratio of 0.16. The company has a 50-day simple moving average of $283.26 and a two-hundred day simple moving average of $293.28.

About AeroVironment

AeroVironment, Inc (NASDAQ:AVAV) is a technology company specializing in unmanned aerial systems (UAS), tactical missiles and precision loitering munitions, electric vehicle charging and scalable energy systems. Headquartered in Monrovia, California, the company develops solutions for defense, public safety and commercial markets. Their offerings include small UAS for intelligence, surveillance and reconnaissance, as well as advanced weapons systems designed to meet the needs of modern military operations.

The company’s unmanned aerial systems portfolio features platforms such as the Raven, Puma and Switchblade series, which are deployed by the U.S.