| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 25 | — | 17.8x | Bottom tier | |
Growth | 78 | 84.4% | 7.1% | Top tier | |
Quality | 24 | -4.6% | 4.5% | Bottom tier | |
Safety | 55 | — | 2.6x | Around median | |
Capital Return | 52 | — | 2.12% | Around median | |
Momentum | 10 | -28.5% | 2.9% | Bottom tier | |
Sentiment | 41 | 10 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
AeroVironment develops and produces defense solutions that include multi-mission reconnaissance systems, precision-strike systems, counter-unmanned aircraft systems, and space and directed-energy technologies. The company generates revenue from selling platforms such as P550, JUMP 20, Puma, Switchblade, Titan, and LOCUST, in addition to service contracts and government programs; in the first quarter of fiscal 2027, the Autonomous Systems segment represented $346 million, or 72% of revenue, while the Space, Cyber and Directed Energy segment contributed approximately $134.5 million, or 28%.
Revenue for the first quarter of fiscal 2027 was approximately $480.5 million, and gross profit was $124.6 million, equivalent to a GAAP gross margin of approximately 25.9%. The company reported a net loss of $5.1 million and earnings per share of negative $0.10, while adjusted gross margin was 30%, adjusted earnings before interest, taxes, depreciation, and amortization were $53 million at a margin of 11%, and adjusted earnings per share were $0.59 compared with $0.32 in the corresponding period.
The segment comparison reveals a clear divergence within the portfolio: Autonomous Systems revenue increased 21% year over year, and Unmanned Aircraft Systems revenue surged 71% to $120 million, but Space, Cyber and Directed Energy segment revenue declined 21% to approximately $134 million due to the termination of the SCAR contract and other government programs. For fiscal 2026, revenue totaled $2.0 billion and gross profit was $500.6 million, compared with a net loss of $265.1 million and negative earnings per share of $5.40.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average price target of $216.73 and a wide range between $170 and $250; the average is above the 52-week low of $135.20 but approximately 48% below the high of $417.86. No positive price-to-earnings multiple is available due to accounting losses, so the valuation depends more heavily on backlog execution, improving margins in the Space, Cyber and Directed Energy segment, and converting capital expenditures into profitable growth, while the wide range of analyst targets remains evidence of differing assessments of execution risk.
Figures in the text are as of 2026-09-11; the live price is shown at the top of the page.
The leading drivers are LOCUST, Titan, P550, Switchblade, and the Freedom Eagle-1 system. LOCUST secured a $464.8 million E-HEL contract, while P550 won a $117 million contract and Titan MS received a contract with a $500 million ceiling and an initial $80 million order. These contracts were reflected in bookings of $683 million and funded backlog of $1.5 billion at the end of the first quarter of fiscal 2027.
Under GAAP, the company reported a net loss of $5.1 million and negative earnings per share of $0.10 on revenue of $480.5 million. On an adjusted basis, earnings per share were $0.59, up from $0.32 in the corresponding period, and adjusted earnings before interest, taxes, depreciation, and amortization reached $53 million at a margin of 11%. Gross profit according to EDGAR data was approximately $124.6 million, equivalent to a margin of approximately 25.9%.
LOCUST is a counter-unmanned aircraft laser system with a cost of less than $10 per shot, according to management, and is designed to address the economic disparity between low-cost drones and expensive interceptor missiles. In August 2026, the company secured a $464.8 million U.S. Army E-HEL contract and then announced the first direct international order for the system. Management expects fixed-price contracts and higher volumes to support improved profitability for LOCUST and the Space, Cyber and Directed Energy segment during the second half of fiscal 2027 and beyond.
Funded backlog reached $1.5 billion at the end of the first quarter of fiscal 2027, up 37% year over year, while unfunded backlog was $1.4 billion. The total reached slightly more than $2.8 billion and did not include remaining ceilings under large IDIQ contracts such as the $990 million Switchblade contract and the $500 million Titan contract. The company stated that this base provides visibility equal to 86% of the revenue needed to reach the midpoint of fiscal 2027 guidance.
The company recorded positive operating cash flow of $13 million in the first quarter of fiscal 2027, but free cash flow was negative $36 million due to capital investments. Management is targeting capital expenditures equal to 12% to 14% of revenue to increase production capacity for LOCUST, Switchblade, Freedom Eagle-1, and other platforms. The projects include a $100 million investment in Southern California, a 200,000-square-foot facility in Salt Lake City, and expanded facilities in Albuquerque and Huntsville.
The main risks are delays in approving the U.S. defense budget, the difficulty of rapidly increasing production, and the need for components with long lead times. Space, Cyber and Directed Energy segment revenue also declined 21% in the first quarter of fiscal 2027, and the segment recorded an adjusted loss of $9 million, while services margin fell to 8%. Nevertheless, on September 9, 2026, management maintained its guidance for revenue between $2.125 billion and $2.225 billion and adjusted earnings before interest, taxes, depreciation, and amortization between $305 million and $325 million.
