AeroVironment Plunges 9% After Q3 Miss and FY26 EPS Cut
AeroVironment, representing 4.49% of the SPDR S&P Aerospace & Defense ETF, tumbled over 9% premarket after reporting Q3 earnings of $0.64 per share versus the $0.69 estimate and missing revenue forecasts by 14%. The company cut its fiscal 2026 adjusted EPS outlook to $2.75–$3.10 from $3.40–$3.55, likely pressuring XAR performance.
1. Q3 Earnings Miss and Share Decline
AeroVironment reported Q3 fiscal 2026 EPS of $0.64, missing estimates of $0.69, and revenue of $408.05 million fell 14% short of the $475.63 million consensus. Shares plunged over 9% in premarket trading on the disappointing figures.
2. Fiscal 2026 Guidance Cut
The company lowered its fiscal 2026 adjusted earnings guidance to a range of $2.75 to $3.10 per share from the prior $3.40 to $3.55 forecast, falling below analyst expectations near $3.31. This revision reflects revenue timing shifts and rising R&D investment.
3. Space Unit Impairment and Backlog Growth
AeroVironment recorded a $151.3 million goodwill impairment after a stop-work order halted BADGER phased array antenna deliveries for the Space Force’s SCAR program. Despite this, its funded backlog climbed to $1.1 billion from $726.6 million year-over-year, driven by defense and aerospace orders.
4. ETF Exposure and Potential Impact
AeroVironment represents 4.49% of the SPDR S&P Aerospace & Defense ETF, making it one of the fund’s largest holdings. The stock’s decline and lowered guidance are likely to exert downward pressure on ETF performance.