AeroVironment shares skyrocketed Wednesday after the drone maker crushed Wall Street expectations for its fiscal fourth-quarter results, fueled by sustained demand for its military-grade unmanned aerial systems.
Shares surged 25% in early trading, putting the stock on track for its biggest single-day gain since March 5 of last year.
Demand across the defense sector for unmanned systems and military hardware remains strong, with analysts projecting continued growth amid rising geopolitical tensions.
Revenue for the quarter jumped 40% year-over-year to $275.1 million, easily beating analysts’ estimates of $241.6 million, according to LSEG data. Adjusted earnings per share came in at $1.61, topping consensus estimates of $1.39.
“AeroVironment finished out fiscal year 2025 with a remarkable fourth quarter, which included record revenue, significantly higher profits, and a robust backlog nearly double that from fiscal year 2024,”
— CEO Wahid Nawabi said in a statement
The company capped off its fiscal year with $1.2 billion in total bookings—its highest on record—setting up a strong pipeline for future revenue. By 10:30 a.m. ET, shares of AeroVironment (NASDAQ: AVAV) were up 26%.
AeroVironment, known for manufacturing small-to-midsize unmanned aerial vehicles (UAVs), has seen its battlefield-proven technology—like the Switchblade drone—gain prominence, particularly due to its role in Ukraine. That spotlight has translated into heightened investor interest.
In its fiscal fourth quarter ending April 30, the company posted earnings of $1.61 per share on revenue of $275.1 million, handily surpassing Wall Street’s forecast of $1.38 in EPS on $242 million in revenue.
In recent years, AeroVironment has evolved from a company with innovative drone technology to a proven, in-demand defense contractor. With its acquisition of BlueHalo, the company is also positioning itself to expand into space and maritime defense systems, as well as scaling up to larger, more sophisticated UAV platforms.
Still, the stock isn’t cheap. AeroVironment currently trades at 63 times expected earnings—well above the 17–20x range typical of more established defense names like General Dynamics, Northrop Grumman, and Lockheed Martin. However, as a smaller and more agile player, AeroVironment may have greater room for growth compared to its larger peers.
Pump Radar
Stock Alerts
