AeroVironment Stock Drops 2.5% After Weak Earnings

Aerospace company misses Q1 earnings estimates, lowers FY 2026 guidance

Mar. 10, 2026 at 9:07pm

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Shares of AeroVironment, Inc. (NASDAQ:AVAV) fell 2.5% on Tuesday after the aerospace company reported weaker-than-expected earnings for the first quarter of 2026. The company posted earnings of $0.64 per share, missing analysts' consensus estimate of $0.72 per share. AeroVironment also lowered its full-year 2026 earnings guidance to $2.75-$3.10 per share.

Why it matters

AeroVironment is a leading provider of unmanned aerial systems and tactical missile systems to the U.S. military and other government agencies. The company's disappointing earnings and guidance revision reflect ongoing challenges in the defense and aerospace sectors, which have been impacted by supply chain disruptions, labor shortages, and shifting government priorities.

The details

For the first quarter, AeroVironment reported revenue of $408.05 million, well below the $487.94 million analysts had expected. The company cited weaker-than-anticipated demand for its products and services. AeroVironment's gross margin also declined, contributing to the earnings miss. In response, the company lowered its full-year 2026 earnings guidance from a previous range of $3.50-$3.80 per share to $2.75-$3.10 per share.

  • AeroVironment reported Q1 2026 earnings on March 10, 2026.
  • The company lowered its FY 2026 guidance on March 10, 2026.

The players

AeroVironment, Inc.

A technology company specializing in unmanned aerial systems, tactical missiles, and precision loitering munitions, as well as electric vehicle charging and scalable energy systems. Headquartered in Monrovia, California.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

The takeaway

AeroVironment's earnings miss and guidance revision highlight the ongoing challenges facing the defense and aerospace sectors, which have been impacted by supply chain issues, labor shortages, and shifting government priorities. The company's performance will be closely watched as an indicator of broader trends in these industries.