AeroVironment (NASDAQ: AVAV) reported record fiscal first-quarter revenue of $480.5 million on September 9, 2026, beating estimates while its funded backlog hit a record $1.5 billion. The defense technology company’s shares rose about 3% in after-hours trading after falling 5.4% during the regular session.
The setup for AVAV’s Q1 report
The quarter, which ended August 1, marks the first of fiscal 2027. Wall Street expected roughly $456 million in revenue and adjusted earnings near $0.25 per share. AeroVironment delivered $480.5 million in revenue, up 6% year over year, and adjusted earnings of $0.59 per share.
That is an 84% increase from the $0.32 the company earned a year earlier. Bookings of $700 million during the quarter drove funded backlog to $1.5 billion, up 37% from the prior year.
Key numbers from the quarter
| Metric | Q1 FY2027 result | Consensus estimate |
|---|---|---|
| Revenue | $480.5 million | about $456 million |
| Adjusted EPS | $0.59 | about $0.25 |
| Bookings | $700 million | — |
| Funded backlog | $1.5 billion, up 37% | — |
| GAAP net result | $5.1 million loss | — |
| Operating cash flow | $13.5 million | — |
The GAAP loss is worth noting. Adjusted figures exclude amortization and one-time costs tied to recent acquisitions, so the gap between $0.59 adjusted EPS and a $5.1 million net loss is real and worth understanding before buying.
What the segments show
| Segment | Q1 revenue | Role |
|---|---|---|
| Autonomous Systems | $346.0 million | Military drones and loitering munitions, the core engine |
| Space, Cyber and Directed Energy | $134.5 million | Satellites, laser weapons, and cybersecurity work |
| Adjusted core profit | $53.4 million | Company-wide, up on volume |
Chief Executive Wahid Nawabi called fiscal 2027 off to a strong start and said the priority is expanding manufacturing capacity across sites. The company builds loitering munitions, unmanned aircraft, and laser weapons for U.S. and allied forces.
Guidance held steady, and that matters
Management left full-year fiscal 2027 guidance unchanged: revenue of $2.125 billion to $2.225 billion, adjusted core profit of $305 million to $325 million, and adjusted earnings of $3.02 to $3.34 per share. A beat paired with unchanged guidance can signal timing risk later in the year, or plain caution on a government-contract book after one quarter.
Cash flow improved but remains tight. Operating cash flow turned positive at $13.5 million versus a $123.7 million outflow a year earlier. Capital spending of $44.0 million and an inventory build of $100.3 million pulled cash down $98.9 million to $278.4 million.
What to watch
The stock closed the regular session at $140.80 and traded near $144.65 after hours. Shares remain down roughly 40% year to date after a restatement episode and the loss of a key contract earlier in 2026. Analysts maintain a moderately bullish stance: of 24 covering firms tracked by MarketBeat, 19 rate the stock a buy and 2 a strong buy, against 2 holds and 1 sell.
Three variables drive the next move. Whether the $1.5 billion backlog converts on schedule. Whether the Space, Cyber and Directed Energy segment climbs back toward profitability. And whether the defense budget weather in Washington stays favorable through the midterm cycle.
Bottom line
AeroVironment just printed a genuine operational beat with record revenue, record backlog, and an 84% jump in adjusted earnings. The unchanged guidance, GAAP loss, and cash consumption argue for patience. This remains a growth holding, not an income stock, and the 40% year-to-date drawdown cuts both ways.
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