AeroVironment (AVAV) is down as the market continues to react to the company’s March 10, 2026 disclosure that the U.S. government intends to terminate for convenience the company’s agreement tied to BADGER phased array antenna systems supporting the Space Force’s SCAR program, while still allowing AeroVironment to compete for future SCAR work. That language leaves investors modeling a near-term revenue/margin hole plus a longer, less-certain path to recapture the opportunity via rebid or follow-on awards. (sec.gov)

The selloff is occurring against the backdrop of AeroVironment’s fiscal Q3 results (reported March 10, 2026) that included a cut to full-year fiscal 2026 revenue guidance to $1.85 billion–$1.95 billion and a wider focus on profitability and integration execution. Even without new headlines, the combination of reduced outlook and SCAR uncertainty has kept the stock sensitive to incremental selling and position de-risking. (avinc.com)

Key near-term catalysts are (1) any formal follow-through on the termination process and associated financial impacts, (2) clarity on timing/structure of any SCAR re-competition and AeroVironment’s role, and (3) whether management can sustain bookings and backlog conversion enough to offset the SCAR/BADGER disruption. Investors will also be monitoring for incremental legal/claims-related headlines after investor-law-firm announcements that can add volatility even if they don’t change the underlying contract math. (prnewswire.com)