A $1.2 billion backlog and better-than-expected fiscal fourth-quarter 2026 results fueled optimism.
- CEO Wahid Nawabi said AeroVironment expects strong contract demand over the next 12–24 months.
- Autonomous Systems generated 76% of Q4 revenue, while the company also secured new Army awards.
- Nawabi highlighted the growing demand for AeroVironment’s LOCUST laser weapon following successful drone interceptions during Navy testing.
AeroVironment Inc (AVAV) stock is on track for a weekly gain as investors focus on the defense contractor and drone maker’s growing contract pipeline rather than softer forward guidance.
After beating fiscal fourth-quarter Q4 2026 earnings expectations, CEO Wahid Nawabi said the company expects strong customer demand over the next 12 to 24 months, supported by expanding defense budgets, a $1.2 billion funded backlog, and growing adoption of autonomous drones and directed-energy weapons.
AVAV’s Autonomous Systems Drive Growth
During AeroVironment’s Q4 earnings call, Nawabi said the company is expanding manufacturing capacity and investing in new technologies.
“We are sensing strong customer indications that our solutions will receive significant contract wins in the next 12 to 24 months. AV is very well positioned for these unprecedented levels of demand in our served markets,” said Nawabi.
Autonomous Systems remained AeroVironment’s largest business, accounting for 76% of the company’s Q4 revenue. During the quarter, the company secured new U.S. Army awards for its VAPOR 55 CLE helicopter and P550 Group 2 drone, while its JUMP 20 family continued to gain traction through operational deployments and mission demonstrations.
Nawabi also highlighted progress across AeroVironment’s precision strike business. The company received new orders for Switchblade and Red Dragon systems while introducing the Mayhem 10 launched-effects platform, designed for future Army requirements.
AeroVironment stock traded over 19% higher overnight, heading into Tuesday.
Laser Weapons Could Become AVAV’s Next Growth Driver
Nawabi pointed to growing interest in the company’s LOCUST laser weapon system, which successfully intercepted drones during a maritime demonstration aboard the USS George H.W. Bush.
“At under $10 per shot, the LOCUST flips the cost advantage between offensive and defensive systems and provides the warfighter with an unlimited magazine. We believe our LOCUST directed energy solution is a game-changing capability which is at the very early stages of a large and strong market adoption cycle,” said Nawabi.
AVAV’s Swelling Backlog Shows Demand Remains Strong
For Q4, the company won $572 million in new contracts. Nawabi said Aerovironment’s book-to-bill ratio was 0.9, mainly because strong quarterly revenue was partly offset by delays in receiving some large contract awards. Over the past 12 months, the book-to-bill ratio was 1.4. The company ended the quarter with $1.2 billion in funded backlog and $1.5 billion in unfunded backlog, excluding the SCAR contract after it was canceled in March.
The company earned $1.84 per share in Q4, beating analysts’ $1.47 estimate, according to Fiscal IA data. Revenue jumped 133% year-on-year to $641.6 million, well above $559.1 million Street view.
AVAV Retail Traders View
On Stocktwits, retail sentiment around the stock jumped to ‘extremely bullish’ from ‘bearish’ territory the previous day with 2,666% increase in message volume in 24 hours.
A user said, there’s a 1.2 billion backlog. That’s what the market is focusing on. Not the soft guidance.
Another user said, “$AVAV still way undervalued at this price. 250 is fair value.”
AVAV stock has declined by over 42% year-to-date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<