AeroVironment Stock Soars As 80% Autonomous Systems Growth Outshines BlueHalo Weakness

AeroVironment, Inc’s (NASDAQ: AVAV ) results continue to highlight "the outsized momentum of the Autonomous Systems (AxS) segment," with 80% year-on-year growth, while the BlueHalo portfolio continues to weigh on the company’s revenue growth and profits, according to BTIG. • AeroVironment stock is among today’s top performers.

Why are AVAV shares rallying? The AeroVironment Analyst: Analyst Andre Madrid reiterated a Buy rating and price target of $205.

The AeroVironment Thesis: Supported by Precision Strike & Defense Systems, AxS generated 80% year-on-year sales growth in the fourth quarter and 61% in fiscal 2026, Madrid said in the note.

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Fourth-quarter adjusted EBITDA margin at AxS was strong, at 28%, partially offset by weaker SCDE margins, he added.

Madrid stated that the programmatic growth drivers were: Switchblade Red Dragon Titan "This growth was partially offset by weakness at the SCDE (Space, Cyber & Directed Energy) segment driven by the SCAR program termination and government funding delays that weighed on the Cyber and Mission Systems (CMS) business," the analyst further wrote.

While there is significant demand for SCDE platforms, timing remains uncertain with funding delays expected to persist into late 2026 or early 2027, Madrid said.

The Outlook: Management guided to fiscal 2027 sales of $2.125-$2.225 billion, representing 10% growth and coming in line with expectations, the analyst stated.

They projected adjusted EBITDA of $305-$325 million and adjusted earnings of $3.02-$3.34 per share.

Management’s fiscal 2027 outlook implies around 14.5% adjusted EBITDA margin, roughly flat as the company increasingly invests in growth, he further noted.

AVAV Price Action: Shares of AeroVironment had risen by 17.48% to $164.30 at the time of publication on Tuesday.

Read Also: These Analysts Slash Their Forecasts On AeroVironment After Q4 Results Photo: Piotr Swat via Shutterstock