United States defence contractor, AeroVironment, has raised its earnings outlook in its first quarter report released overnight.
The drone maker and defence technology provider on Monday announced another contract for its growing backlog.
The Q1 2026 report showed earnings of 32 cents per share, down from 89 cents last year and slightly below market expectations of 33 cents.
Revenue broke records for the first quarter for AeroVironment, landing at US$454.7 million, a mark-up of 140% year-over-year.
A little over half of that revenue, US$235.2 mil, was attributed to the acquisition BlueHalo, a fellow defence technology provider.
First quarter backlog was another record for AeroVironment, coming in at US$1.1 billion, with another contract announced on Monday.
The 2026 revenue outlook was maintained, and earnings were lifted to $3.60-$3.70 per share adjusted, up from the previously forecast $2.80 and $3 per share.
“As we complete the first quarter of our new fiscal year, we are excited by the continued strength across both our Autonomous Systems and Space, Cyber and Directed Energy segments with record revenue and backlog,” said Wahid Nawabi, AeroVironment chairman, president and CEO.
"Our continued strong results underscore our confidence in the future of AV, and we are optimistic about the growth opportunities that lie ahead as we redefine the future of defense.”
At the time of writing, AeroVironment (NASDAQ: AVAV) stock was trading at US$240.29, up 4% from Tuesday's close of $230.99. The company maintains a market capitalisation of US$11.53 billion.
