AeroVironment Misses Q3 Estimates, Cuts FY26 EPS Guidance and Impairs $151M
AeroVironment reported Q3 fiscal-year earnings of $0.64, missing the $0.69 estimate, and revenue of $408.1M, 14.2% below forecasts despite 143% year-over-year growth. It cut FY26 adjusted EPS guidance to $2.75–$3.10 from $3.40–$3.55, booked a $151.3M goodwill impairment on a SCAR antenna program stop-work order, and its funded backlog reached $1.1B.
1. Q3 Earnings and Revenue Miss
In its third quarter of fiscal 2026, AeroVironment reported adjusted earnings of $0.64 per share, falling short of the $0.69 analyst consensus. Quarterly revenue reached $408.05 million, 14.2% below forecasts but representing a 143% increase year over year, driven by higher product and service sales.
2. Fiscal 2026 Guidance Cut
The company reduced its full-year adjusted EPS outlook to a range of $2.75 to $3.10 per share from prior guidance of $3.40 to $3.55, signaling expectations for tighter margins and delayed Space segment revenues. This revised forecast also sits below the Wall Street estimate of $3.31 per share.
3. Goodwill Impairment and Backlog Growth
A $151.3 million goodwill impairment was recorded after a stop-work order paused deliveries of phased array antennas under the SCAR program, prompting revised long-term cash flow projections. Despite this setback, funded backlog climbed to $1.1 billion, up from $726.6 million in April 2025, highlighting robust defense and aerospace demand.