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Mar 11, 2026 8:01 AM

Why Is AeroVironment Stock Tanking Wednesday?

AeroVironment Inc. (NASDAQ:AVAV) shares tumbled more than 9% in Wednesday’s premarket trading after the defense technology company reported quarterly earnings and revenue that missed Wall Street expectations and lowered its fiscal 2026 profit outlook.

Earnings, Revenue Fall Short of Estimates

AeroVironment reported third-quarter fiscal 2026 earnings of 64 cents per share, missing the consensus estimate of 69 cents per share.

Quarterly revenue totaled $408.05 million, also below the Street estimate of $475.63 million, representing a 14.21% shortfall.

Despite the miss, revenue for the third quarter of fiscal 2026 rose 143% year over year, driven by higher product sales and increased service revenue.

Fiscal 2026 Guidance Reduced

The company also lowered its fiscal 2026 adjusted earnings outlook, projecting earnings of $2.75 to $3.10 per share. The new forecast is below both its prior guidance of $3.40 to $3.55 per share and the analyst estimate of $3.31 per share.

CEO Points to Strong Demand

“While our third quarter results were impacted by revenue timing and adjustments in our Space business, demand for our unique solutions remains robust,” said Wahid Nawabi, AeroVironment chairman, president and CEO.

“Strong order flow and growth in funded backlog during the quarter are setting the stage for ...