AVAV
AeroVironment, Inc.

AeroVironment, Inc.AVAV

Industrials · Aerospace & Defense
112.76USD
+10.46%
Nov 08, 2026
AVAV overview ready
Supplier of tactical uncrewed aircraft and counter-drone systems to defense
AeroVironment is a direct defense-technology supplier of tactical uncrewed aircraft, precision loitering munitions, counter-UAS systems, autonomy and command-and-control capabilities.
Primary theme is lagging
Defense / Drones is lagging (+0.2pp vs SPY over 21 sessions; 13 of 25 members ahead of SPY).
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Fair valuation
The price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.
Solid fundamentals
Ev / sales is strong.
Primary risk
Dependence on U.S. Allied government defense budgets.
Market Nov 6Filing Aug 1Price action Nov 7Research Aug 30

Conviction Level

PriceAction1.4BusinessPerformance4.0BusinessQuality3.0Valuation3.5ThemeMomentum1.0Decelerating — Revenue is still growing (+5.7% YoY), but growth has slowed for 3 consecutive quarters, down from +151%. The company is still loss-making: the diluted loss per share narrowed to -$0.10 from -$1.44 a year earlier. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
+0.2pp
Theme return
−4.8%
Beating SPY
13 of 25
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryDamaged / breakdown

The technical structure itself is broken across timeframes — the weakest entry profile.

Key Financials

Market Cap
$5.7B
Avg Volume (60D)
1.8M
60 sessions
Revenue Growth YoY
+140.9%
FY2026 vs FY2025
Gross Margin
+26.5%
Trailing twelve months
Operating Margin
-12.6%
Trailing twelve months
Free Cash Flow Yield
-0.4%
Distance from 200DMA
-37.2%
Next Earnings
2026-12-02
P/E
N/M
EV / Sales
2.9x
Market metrics as of Nov 6, 2026
Financial results for the period ended Aug 1, 2026
Filed balance-sheet data as of Aug 1, 2026

Business Performance

Decelerating

Revenue is still growing (+5.7% YoY), but growth has slowed for 3 consecutive quarters, down from +151%. The company is still loss-making: the diluted loss per share narrowed to -$0.10 from -$1.44 a year earlier.

Latest reported: Q1 FY2027, ended Aug 1
Revenue growthSlowing
+5.7%
$480M in Q1 FY2027 · YoY
YoY growth, last 4 quarters
  1. +151%
  2. +143%
  3. +133%
  4. +5.7%
Earnings growthLoss narrowing
-$0.10
Diluted EPS -$0.10 vs -$1.44 a year earlier · GAAP
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Gross marginSwinging
25.9%
+5.0 pp YoY
The share count is rising

Business Quality

3.0 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say cheap; intrinsic is the dissenting view. The published stance is held at fair because no positive free cash flow behind the low multiple.
AeroVironment, Inc. has a Fair valuation stance because the price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.

What changed

  • AVAV rose 10.5% in one session
    AVAV closed +10.5% while the broad market was close to flat (+0.3%).
    2026-11-06

Company Research

Thesis
AeroVironment is a direct defense-technology supplier of tactical uncrewed aircraft, precision loitering munitions, counter-UAS systems, autonomy and command-and-control capabilities.
Opportunity
High opportunity
Defense procurement and allied rearmament centered on scalable uncrewed ISR and strike platforms, loitering munitions, and systems that detect, disrupt, or defeat proliferating small-drone threats.
Key risk
Dependence on U.S. Allied government defense budgets.

Economic classification

Loading the economic classification…

Business & Markets

Industrials · Aerospace & Defense
What they do

AeroVironment designs, develops, produces, and supports robotic systems, primarily uncrewed aircraft and related technologies, for government and commercial customers in the U.S. Internationally.

How it earns

Primarily project-based and contract-driven revenue from defense and government procurement.

Products & services
Small and medium uncrewed aircraft systems (UAS)
Kinesis command and control software
Counter-UAS systems
Precision loitering munitions
Customers & end markets
U.S. government and defense agencies
International government defense customers
Market position

Leader in tactical uncrewed aircraft and counter-drone systems with expanding capabilities through acquisitions.

Demand drivers
Medium cyclicality

Dependent on defense procurement cycles and government budgets but supported by urgent rearmament demand.

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