AeroVironment Backlog Hits Record High On Laser Contracts
AeroVironment posted record revenue and expanded margins as new laser weapon contracts drove a 37% surge in funded backlog.
AeroVironment Inc. reported first-quarter fiscal 2027 revenue of $480.5 million, up 6% year over year, alongside a record funded backlog of $1.5 billion. The company’s non-GAAP earnings per share reached $0.59, significantly exceeding analyst expectations of $0.22 to $0.25. This performance reflects improved operating leverage and gross margins expanding from 21% to 26% as the defense contractor scales its directed-energy portfolio.
Shares of AeroVironment climbed 7.03% on September 10, 2026, following the release of these results. The stock price closed at $150.70 after trading in a wide intraday range between $142.50 and $159.24. The positive reception, noted by GN stocks/shares-surge, underscores market confidence in the company’s growing order book and strategic shift toward high-margin technology solutions.
Laser Contracts Drive Revenue Growth
The financial strength of the quarter was anchored by significant wins in the counter-unmanned aerial systems sector. AeroVironment secured a $464.8 million multi-year contract from the U.S. Army for the LOCUST X3 laser weapon under the E-HEL program. This award represents the first large-scale directed-energy production contract in the United States, validating the company’s long-term technology roadmap.
International expansion also contributed to the bottom line, with the company securing a direct commercial sale exceeding $50 million for the LOCUST high-energy laser system. This first international sale confirms early global traction for AeroVironment’s directed-energy technology, diversifying revenue sources beyond domestic defense budgets.
Bookings Outpace Quarterly Revenue
AeroVironment recorded $700 million in bookings for the quarter, resulting in a 1.4x book-to-bill ratio. This metric indicates that new orders are growing faster than current sales, providing a strong foundation for future revenue. The surge in bookings pushed the total funded backlog to a record $1.5 billion, a 37% increase from the same period last year.
Profitability Improves Amid Accounting Loss
While AeroVironment reported a GAAP net loss of $5.1 million, this figure represents a substantial narrowing from a $67.4 million loss in the prior year. The discrepancy is attributed to non-operational accounting items, while core operating profitability improved markedly. The shift to positive non-GAAP EPS of $0.59 demonstrates that the underlying business is generating cash and becoming more efficient.
The company reaffirmed its full-year fiscal 2027 guidance, projecting revenue between $2.125 billion and $2.225 billion. Expected earnings per share remain in the range of $3.02 to $3.34. These targets align with prior consensus estimates, suggesting that management believes the current momentum will sustain through the remainder of the fiscal year without requiring significant adjustments.
