AeroVironment (AVAV) Q1 2027 Financial Results Summary
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AeroVironment (AVAV) Q1 2027: Record Revenue and Backlog Growth — Positive Momentum
AeroVironment, Inc. (NASDAQ: AVAV) reported its fiscal first quarter results for the period ending August 1, 2026, showcasing a strong performance with record revenue and significant backlog growth. The company achieved revenue of $480.5 million, reflecting an increase of $25.8 million or 6% year-over-year compared to $454.7 million in the same quarter last year.
This quarter's results are a positive indication for shareholders, as the company not only surpassed the previous year's revenue but also demonstrated robust operational improvements. The increase in revenue was driven by higher product sales of $15.5 million and an increase in service revenue of $10.3 million.
Key Financial Metrics:
- Revenue: $480.5 million, up $25.8 million or +6% YoY
- Bookings: $0.7 billion
- Book-to-bill ratio: 1.4
- Funded backlog: $1.5 billion, up 37% YoY
- Gross margin: $124.6 million, up 31% YoY from $95.1 million
- Gross margin percentage: 26%, up from 21%
- Loss from operations: $(10.9) million, improved from $(69.3) million YoY
- Net loss: $(5.1) million, or $(0.10) per diluted share, compared to $(67.4) million, or $(1.44) per diluted share in Q1 2026
- Non-GAAP adjusted EBITDA: $53.4 million, down from $56.6 million YoY
- Non-GAAP earnings per diluted share: $0.59, up from $0.32 YoY
The significant reduction in the loss from operations, from $(69.3) million to $(10.9) million, highlights the company's improved cost management and operational efficiency. The gross margin increase to 26% is particularly noteworthy, as it reflects a decrease in intangible amortization and other non-cash expenses, which had previously weighed heavily on profitability.
Operational Highlights:
- The company reported a book-to-bill ratio of 1.4, indicating strong demand and a healthy pipeline for future revenue.
- The funded backlog reached a record $1.5 billion, up 37% from the previous year, which positions AeroVironment well for sustained growth in the upcoming quarters.
Outlook and Guidance:
For the full fiscal year 2027, AeroVironment maintains its revenue guidance of between $2.125 billion and $2.225 billion and expects net income to range from $10 million to $27 million. The company also projects non-GAAP adjusted EBITDA between $305 million and $325 million and earnings per diluted share between $0.21 and $0.53.
Shareholder Returns:
While there were no announcements regarding dividends or share buybacks in this quarter, the improved financial metrics and positive outlook suggest that AeroVironment is focused on enhancing shareholder value through operational excellence and strategic growth initiatives.
Forward Catalyst:
Investors should closely monitor AeroVironment's ability to convert its substantial backlog into revenue in the upcoming quarters. Additionally, the company's efforts to expand manufacturing capacity and strengthen its supply chain will be critical as it seeks to meet increasing demand for its autonomous systems and related technologies. The next earnings report will provide further insights into how effectively the company can capitalize on its current momentum and navigate the challenges of the defense technology sector.
AeroVironment, Inc. Consolidated Statements of Operations (In thousands except share and per share data)
Note: All amounts are in thousands.
| Three Months Ended | ||
|---|---|---|
| August 1, 2026 | August 2, 2025 | |
| Revenue: | ||
| Product sales | $329,058 | $313,533 |
| Contract services | $151,432 | $141,143 |
| $480,490 | $454,676 | |
| Cost of sales: | ||
| Product sales | $213,565 | $230,687 |
| Contract services | $142,326 | $128,871 |
| $355,891 | $359,558 | |
| Gross margin: | ||
| Product sales | $115,493 | $82,846 |
| Contract services | $9,106 | $12,272 |
| $124,599 | $95,118 | |
| Selling, general and administrative | $111,508 | $131,276 |
| Research and development | $23,962 | $33,114 |
| Loss from operations | $(10,871) | $(69,272) |
| Other income (loss): | ||
| Interest income (expense), net | $4,136 | $(17,415) |
| Other (expense) income, net | $(595) | $2,361 |
| Loss before income taxes | $(7,330) | $(84,326) |
| Benefit from income taxes | $(397) | $(15,169) |
| Equity method investment income, net | $1,867 | $1,787 |
| Net loss | $(5,066) | $(67,370) |
| Net loss per share | ||
| Basic | $(0.10) | $(1.44) |
| Diluted | $(0.10) | $(1.44) |
| Weighted-average shares outstanding: | ||
| Basic | 49,822,595 | 46,882,350 |
| Diluted | 49,822,595 | 46,882,350 |
AeroVironment, Inc. Consolidated Balance Sheets (In thousands except share data)
Note: All amounts are in thousands.
| August 1, 2026 | April 30, 2026 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $278,390 | $377,325 |
| Short-term investments | $301,837 | $254,972 |
| Accounts receivable, net of allowance | $183,133 | $316,167 |
| Unbilled receivables and retentions | $637,832 | $570,408 |
| Inventories, net | $410,773 | $312,856 |
| Income taxes receivable | $5,806 | $6,210 |
| Prepaid expenses and other current assets | $63,863 | $52,485 |
| Total current assets | $1,881,634 | $1,890,423 |
| Long-term investments | $94,777 | $81,128 |
| Property and equipment, net | $202,653 | $166,719 |
| Operating lease right-of-use assets | $113,830 | $100,392 |
| Intangibles, net | $886,469 | $929,826 |
| Goodwill | $2,493,886 | $2,493,678 |
| Other assets | $57,444 | $54,576 |
| Total assets | $5,730,693 | $5,716,742 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | $174,836 | $160,507 |
| Wages and related accruals | $70,933 | $98,056 |
| Customer advances | $87,546 | $79,607 |
| Current operating lease liabilities | $17,823 | $17,594 |
| Income taxes payable | $487 | $524 |
| Other current liabilities | $90,105 | $82,949 |
| Total current liabilities | $441,730 | $439,237 |
| Long-term debt | $730,057 | $728,967 |
| Non-current operating lease liabilities | $102,943 | $88,228 |
| Other non-current liabilities | $1,984 | $1,986 |
| Liability for uncertain tax positions | $7,430 | $7,430 |
| Deferred income taxes | $50,494 | $50,494 |
| Commitments and contingencies | ||
| Stockholders’ equity: | ||
| Preferred stock, $0.0001 par value: | ||
| Authorized shares—10,000,000; none issued or outstanding at August 1, 2026 and April 30, 2026 | — | — |
| Common stock, $0.0001 par value: | ||
| Authorized shares—100,000,000 | ||
| Issued and outstanding shares — 50,822,963 shares at August 1, 2026 and 50,610,514 shares at April 30, 2026 | $6 | $6 |
| Additional paid-in capital | $4,397,684 | $4,396,845 |
| Accumulated other comprehensive loss | $(5,753) | $(5,635) |
| Retained (loss) earnings | $4,118 | $9,184 |
| Total stockholders’ equity | $4,396,055 | $4,400,400 |
| Total liabilities and stockholders’ equity | $5,730,693 | $5,716,742 |
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