AeroVironment, Inc. (AVAV)

AeroVironment's stock has seen significant movement in the past six months, surging over 153.91%. In October 2025, the stock climbed after new developments were announced, with insider selling occurring. In September 2025, the stock fell 10% after a protest was filed against a $990 million U.S. Army contract, leading to a downgrade, but the Switchblade 600 achieved its first air launch from an MQ-9A, and Q1 FY2026 earnings reported a record revenue of $189.5 million. In August 2025, Q2 CY2025 results exceeded revenue expectations, with sales up 140% year-on-year. In July 2025, the stock surged after beating earnings expectations, and the Wildcat Uncrewed Aircraft System achieved development milestones. In June 2025, record Q4 FY2025 revenue of $275 million contributed to a record fiscal year revenue of $821 million, with $1.2 billion in total bookings for FY2025, and the Switchblade 600 was selected for Tranche 1 of the U.S. DoD's Replicator Initiative.

AeroVironment's revenue streams are heavily influenced by government contracts and global security needs, with increasing demand for its UAS and tactical systems. The company's business model includes product sales, service contracts, and software solutions. The business landscape has shifted with a higher service mix and several products in early stages of maturation. Revenue from Ukraine has fluctuated but is expected to remain between 5% and 8% of total revenue in FY2026. The timing of additional contracts and task orders under large U.S. Army contracts can introduce variability, but overall, demand appears to be robust and accelerating.

AeroVironment, Inc. is a defense contractor specializing in unmanned aircraft systems (UAS) and related technologies, operating in the defense, intelligence, and public safety sectors. The company's core business segments include Uncrewed Systems (UxS), Loitering Munition Systems (LMS), MacCready Works (MW), and Space, Cyber and Directed Energy (SCBE). The UxS segment focuses on small and medium UAS and unmanned ground vehicles. The LMS segment specializes in precision-strike solutions like the Switchblade loitering missile system. The MW segment is dedicated to research and development in robotics and related fields. The SCBE segment includes offerings in autonomy, AI, platform technologies, and cyber solutions.

AeroVironment is headquartered in Arlington, Virginia, and has a significant market presence in the United States, serving the Department of Defense and other government agencies. The company has expanded into international markets, including Europe, Asia, and the Middle East, collaborating with international defense forces. Testing and training operations are conducted at Spaceport America in New Mexico. In Q1 FY2026, 78% of revenue came from domestic customers and 22% from international customers, with Ukraine representing 8% and the rest of Europe 6%.

AeroVironment maintains a strong reputation as a trusted partner for mission-critical applications, recognized as a global leader in intelligent, multi-domain robotic systems and the U.S. military's top supplier of small drones. Chinese sanctions in January and March 2025 and a contract protest in September 2025 have posed challenges. Despite these challenges, the company's selection for the U.S. DoD's Replicator Initiative and ongoing contracts with the U.S. Army underscore its continued strong standing in the defense sector.

Institutional investors own a significant portion of AeroVironment's stock, approximately 86.38% to 89.87%. Major institutional owners include State Street Corp., Sumitomo Mitsui Trust Group, Inc., and Schweizerische Nationalbank. Stephens Investment Management Group LLC decreased its stake by 17.0% in Q2 2025, while Ritholtz Wealth Management acquired a new stake. Individuals own about 0.9% of the stock, with 88.5% of shareholders from the United States and 6.02% from the United Kingdom.