AeroVironment, Inc. (NASDAQ: AVAV - Get Free Report)'s share price traded down 2.3% during trading on Friday after Jefferies Financial Group lowered their price target on the stock from $390.00 to $305.00. Jefferies Financial Group currently has a buy rating on the stock. AeroVironment traded as low as $206.64 and last traded at $207.07. 1,364,891 shares
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
AeroVironment faces a setback with the SCAR contract termination, impacting credibility and removing $1.4B from its unfunded backlog. Despite Q3 revenue and EPS misses, AVAV's core counter-drone and directed energy solutions remain promising, with strengthening demand in key segments. Guidance for FY26 is reduced: revenue down $50–100M, EBITDA down $35M, and EPS now $2.75–$3.10, reflecting SCAR and government shutdown impacts.
AeroVironment ( NASDAQ:AVAV ) appeared set for liftoff when the U.S.
AeroVironment has sold off sharply amid worries about a key contract loss; it's now dropped 50% or more four times in a decade. Concerns are real; the BlueHalo acquisition is starting to look like a whiff, the company disclosed compliance issues, and valuation remains aggressive. But history suggests that investor optimism toward the industry will always bring buyers back to AVAV, and there isn't enough here to suggest that trend will change.
KeyBanc Capital Markets trimmed its price target on AeroVironment ( NASDAQ:AVAV ) to $295 from $330 following the company's fiscal third-quarter 2026 earnings report, while maintaining an Overweight rating on the shares.
AeroVironment shifts from a 'strong buy' to 'hold,' after Q3 FY26, reflecting margin pressure and integration challenges post-BlueHalo acquisition. Q3 revenue surged 143% YoY to $408M but missed consensus; gross margin collapsed to 24%, and a $151M goodwill impairment drove a $156.6M net loss. Guidance was sharply reduced: FY26 revenue is now $1.85–$1.95B (from $2B), and EPS is cut to $2.75–$3.10 (from $3.40–$3.55), driven by SCAR program uncertainty.
AeroVironment, Inc. (AVAV) Q3 2026 Earnings Call Transcript
Although the revenue and EPS for AeroVironment (AVAV) give a sense of how its business performed in the quarter ended January 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
AeroVironment (AVAV) came out with quarterly earnings of $0.64 per share, missing the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $0.3 per share a year ago.
The drone maker said it now expects adjusted earnings per share of $2.75 to $3.10 for the fiscal year, compared with $3.40 a share to $3.55 a share previously.
AVAV expands counter-drone defenses with Titan RF systems, AI-driven sensing and kinetic interceptors as militaries boost demand for C-UAS tech.