AeroVironment’s Record Earnings Send Drone and Defense Stocks Higher

TLDR

• AeroVironment posted record fiscal fourth quarter revenue of $641.6 million, more than double last year’s results.
• Adjusted earnings per share hit $1.84, beating analyst estimates of around $1.47.
• Kratos Defense, Vishay Precision, and Unusual Machines all gained Tuesday in sympathy with AeroVironment.
• The company’s Autonomous Systems unit brought in $492 million, about 76% of total sales.
• AeroVironment’s fiscal 2027 guidance came in above revenue estimates but below earnings expectations.

AeroVironment shares jumped Tuesday after the company reported record fiscal fourth quarter results. The drone maker posted revenue of $641.6 million, more than doubling from a year earlier.

That figure beat Wall Street’s expectation of roughly $557 million. Adjusted earnings per share came in at $1.84, topping estimates of $1.47 to $1.48.

The strong report sent ripples through the wider defense sector. Several other companies tied to drones and military technology rose alongside AeroVironment.

How Other Stocks Reacted

Kratos Defense climbed 8% during Tuesday’s session. Vishay Precision Group gained 5%, while Unusual Machines also moved higher.

Kratos Defense & Security Solutions, Inc., KTOS
These gains followed AeroVironment’s pre-market surge of 32% after its earnings release. Investors appeared to treat the report as a positive signal for the broader drone and defense industry.

Red Cat Holdings rose 3% in extended trading Monday after the news. Ondas gained close to 2%, and Kratos added nearly 3.5% in that same after-hours session.

The optimism also touched exchange-traded funds tied to the sector. The ARK Space and Defense Innovation ETF has gained more than 10% so far this year.

The Defiance Drone and Modern Warfare ETF has also posted gains in 2026. The REX Drone ETF, by contrast, has fallen this year despite Tuesday’s rally.

Breaking Down AeroVironment’s Results

AeroVironment’s Autonomous Systems segment was the main driver of growth. That division generated $492 million in revenue, well above the roughly $402 million analysts had expected.

The segment accounted for about 76% of the company’s total quarterly sales. This includes products like the Switchblade line of loitering munitions.

During the earnings call, AeroVironment’s chief executive said the company’s counter-drone business is still in its early stages. He suggested that unit could grow to two or three times the size of the company’s current core business over the next three to five years.

Funded backlog reached $1.2 billion, up 65% from a year earlier. Total bookings for the quarter were reported at $2.7 billion.

Looking ahead, AeroVironment guided for fiscal 2027 revenue between $2.13 billion and $2.23 billion. That range sits above the analyst consensus of $2.19 billion.

However, the company’s adjusted earnings per share guidance of $3.02 to $3.34 came in below the $3.98 estimate. One fund manager noted that AeroVironment has historically guided conservatively at the start of its fiscal year.

After Monday’s close, AeroVironment shares had risen 0.76% to $139. The stock then jumped more than 20% in pre-market trading Tuesday following the earnings release.

The company’s momentum score remains low according to one ranking system, despite the recent rally. Its price trend has been negative across short, medium, and long time frames leading into this report.

Investors will be watching whether the gains in AeroVironment and its peers hold through the rest of the week. The next earnings reports from companies like Kratos Defense will offer more insight into whether this momentum extends across the defense sector.

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