AeroVironment, Inc. (AVAV) AI Stock Analysis

AeroVironment, Inc. specializes in designing, developing, manufacturing, delivering, and supporting robotic systems and associated services for government agencies and commercial enterprises globally. The company operates through four segments: Unmanned Aircraft Systems (UAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS). Serving primarily the U.S. Department of Defense and allied international governments, its offerings include airborne vehicles, integrated payloads, ground control systems, unmanned ground vehicles, and repair support. Founded in 1971 and headquartered in Arlington, Virginia, the company also develops high-altitude pseudo-satellite UAS systems to enhance aerial surveillance and communications.

AeroVironment's revenue expanded at a 5-year CAGR of 38.0% from FY2021 to FY2026, rising from $445.7M in FY2022 to $1.98B in FY2026. Revenue growth accelerated to 140.9% in FY2026, up from 14.5% in FY2025. However, profitability contracted, with gross margin dropping from 39.4% in FY2025 to 25.3% in FY2026, and operating margin declining from 5.0% to -3.6%. Net income fell from $43.6M in FY2025 to -$265.1M in FY2026. For the latest quarter ended July 31, 2026, quarterly revenue increased 5.7% year-over-year, while quarterly earnings grew 175.7%. Over the trailing twelve months, revenue reached $2.00B with a profit margin of -10.1%.

As of July 31, 2026, AeroVironment held $580.2M in cash and short-term investments against $850.8M in total debt, resulting in net debt of $270.6M. Its liquidity profile shows a current ratio of 4.26 and a debt-to-equity ratio of 0.19 on shareholders' equity of $4.40B. Operating cash flow stood at -$78.4M in FY2026, alongside free cash flow of -$164.6M. In FY2026, capital expenditures were $86.2M, while share count expanded 100.2% over five years.

AeroVironment trades at a forward P/E of 55.2x and an EV/EBITDA of 69.6x, compared to medians of 17.2x and 13.9x, respectively, for US-listed Industrials peers. The company has a price-to-sales ratio of 3.1x versus the peer median of 1.5x, and a PEG ratio of 1.57. Over the past year, the stock declined 67.4%, significantly lagging the S&P 500's return of 16.8%. Over a 5-year period, AVAV gained 35.2% compared to 83.0% for the S&P 500.

Wall Street coverage includes 12 Strong Buy, 6 Buy, and 5 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target of $216.16 implies an upside of 77.5% from the last close of $121.79. Consensus forecasts project revenue of $2.20B and EPS of $3.26 for the fiscal year ending April 30, 2027. AeroVironment beat EPS estimates in 2 of the last 4 quarters, and its next earnings release is scheduled for December 8, 2026.

This page is an AI-written research summary of AeroVironment, Inc. (AVAV). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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