AVAV earnings analysis
What we found in AVAV's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
AeroVironment, Inc. reported substantial growth driven primarily by strategic acquisitions and demand in defense technologies, culminating in Q4 fiscal 2026 revenues of $641.6 million and EPS of $1.84, exceeding estimates. The company showed a significant increase in total revenue for fiscal 2026 to $1.98 billion, up 141% year-over-year, despite substantial goodwill impairment charges. Management continues to focus on product innovation while navigating challenges associated with contractual dependencies.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Robust Revenue Growth
- Fiscal 2026 revenue rose 141% to $1.98 billion, driven largely by acquisitions of BlueHalo and ESAero.
- Q4 EPS Beat
- Q4 EPS came in at $1.84, significantly beating the expected $1.48.
- Improved Segment Performance
- AxS segment revenue increased 65% to $1.36 billion, demonstrating strong demand for unmanned systems.
- Acquisition Synergies
- The BlueHalo acquisition is expected to enhance operational capabilities and market presence.
- R&D Focus
- R&D expenses increased 27% to $127.7 million, indicating strong investment in product development.
- No Cash Dividends Planned
- The firm has retained earnings for reinvestment, signaling prioritization of growth over immediate shareholder returns.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Goodwill Impairment Charges
- A goodwill impairment charge of approximately $240.7 million was recorded in Q4 2026, linked to the SCAR program termination.
- Dependence on Government Contracts
- 85% of revenue comes from U.S. government contracts, exposing the business to governmental budget cuts.
- Cybersecurity Vulnerabilities
- As highlighted in the filing, increased scrutiny on cybersecurity due to recent breaches poses risks to operations.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-5.4
- Gross margin
- 25.3%
- Operating margin
- -15.7%
- Segment
- AxS
- Segment
- SCDE
What they said about what is next.
Management guidance for fiscal 2027 indicates significant growth expectations; specific numeric guidance was not included in the 10-K.
The filing reads better than the one before it.
What came before.
- 10-Q · June 22, 2026
- AeroVironment's Q4 results reflect a significant revenue increase to $408M, a 143% increase from the previous year, but substantial goodwill impairment charges of approximately $241M led to a net loss of $243M.…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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