AeroVironment Reports Q3 EPS Miss and Cuts Fiscal 2026 Outlook with $151M Impairment
AeroVironment reported Q3 fiscal 2026 EPS of $0.64, missing estimates by $0.05, and revenue of $408.05 million, 14.2% below forecasts despite 143% year-over-year growth. The company cut its fiscal 2026 adjusted EPS guidance to $2.75–$3.10 and recorded a $151.3 million Space unit goodwill impairment.
1. Q3 Earnings and Revenue Miss
AeroVironment reported Q3 fiscal 2026 EPS of $0.64, missing the consensus estimate of $0.69 per share, while revenue of $408.05 million fell 14.2% short of forecasts despite a 143% year-over-year increase driven by higher product and service sales.
2. Fiscal 2026 Guidance Reduced
The company lowered its full-year adjusted EPS guidance to a range of $2.75 to $3.10, down from prior guidance of $3.40 to $3.55 and below the analyst consensus of $3.31, reflecting ongoing revenue timing challenges.
3. Goodwill Impairment in Space Business
A $151.3 million goodwill impairment was recorded in the Space reporting unit after a stop-work order on the BADGER phased array antenna program prompted revised long-term cash flow projections and increased research, development and capital investment estimates.
4. Backlog Growth and Demand Outlook
Funded backlog climbed to $1.1 billion as of January 31, 2026, up from $726.6 million in April 2025, underpinning expectations for record fourth quarter revenue and solid growth into fiscal 2027.