AeroVironment Surges 28% on Fiscal Q4 Beat, Eyes $1.2B Backlog

According to its fiscal fourth-quarter earnings released this week, AeroVironment (AVAV) shares surged over 30%, driven by better-than-expected results. The Virginia-based dronemaker more than doubled revenue to $642 million from a year ago, while its funded backlog jumped 65% to $1.2 billion. Autonomous systems revenue totaled $492 million, surpassing the $402 million StreetAccount consensus estimate.

The rally reflects strong demand fueled by U.S. defense modernization plans. The Department of Defense is requesting a record $75 billion for drones in 2027, as the Trump administration prioritizes drone dominance amid rising geopolitical tensions. CEO Wahid Nawabi noted the company is scaling manufacturing to meet unprecedented demand.