AeroVironment (AVAV) Q3 2026 earnings summary

Executive summary

• Third quarter revenue reached $408 million, up 143% year-over-year, driven by the BlueHalo acquisition, higher product and service sales, and strong demand in defense markets.

• Net loss for the quarter was $156.6 million, primarily due to a $151.3 million goodwill impairment in the Space segment following a stop-work order on a major contract.

• Funded backlog reached a record $1.1 billion, with a book-to-bill ratio of 1.6 and total awards of $4.5 billion for the first nine months of FY26.

• The company is leveraging operational strengths, product innovation, and manufacturing scalability, with a strategic shift to commercial product solutions to improve long-term profitability and market adoption.

• Integration of BlueHalo expanded operations, added new business segments, and contributed $656.9 million in revenue since acquisition.

Financial highlights

• Q3 revenue was $408 million, up 143% year-over-year; organic growth was 38%.

• Adjusted EBITDA for Q3 was $44.5 million (10.9% margin), up from $21.8 million last year; full-year Adjusted EBITDA margin forecasted at 14%-15%.

• Gross margin for the quarter was 24%, down from 38% year-over-year, reflecting higher service revenue and amortization.

• Adjusted EPS was $0.64, more than double the prior year’s $0.30; GAAP net loss per share was $(3.15).

• Cash and investments at quarter-end were $289.9 million, up from $40.9 million at April 30, 2025, due to financing activities.

Outlook and guidance

• FY26 revenue guidance is $1.85–$1.95 billion, Adjusted EBITDA $265–$285 million, and non-GAAP EPS $2.75–$3.10.

• Full-year GAAP net loss forecasted between $(218) million and $(201) million.

• Q4 expected to be a record quarter, with strong demand and backlog supporting growth into FY27.

• Revenue visibility for FY26 at 98% based on current backlog and bookings.

• R&D expense expected to remain at 7–8% of revenue.