AeroVironment (NASDAQ: AVAV) opened fiscal 2027 with record first-quarter revenue of $480.5 million, a book-to-bill ratio of 1.4 and a funded backlog of $1.5 billion, up 37% year over year, as demand for its loitering munitions, uncrewed aircraft and directed-energy systems continued to outpace its ability to build them.
Record Backlog As Autonomy And Directed Energy Scale
Reporting on September 9, 2026 for the quarter ended August 1, the Arlington-based defense technology company said bookings hit $0.7 billion in the quarter, taking trailing twelve-month bookings above $3 billion. Funded backlog rose from $1.2 billion at April 30 to a fresh record of $1.5 billion, giving management multiple quarters of visibility into fiscal 2027.
The Autonomous Systems segment, which houses the Switchblade family and JUMP 20-X, contributed $346.0 million of revenue. The Space, Cyber and Directed Energy unit, built out through the BlueHalo acquisition, added $134.5 million and continues to benefit from wins around the LOCUST directed-energy weapon and VigilantHalo counter-UAS kit.
Profitability Recovers From BlueHalo Deal Weight
Non-GAAP adjusted EBITDA landed at $53.4 million and non-GAAP diluted earnings came in at $0.59 per share, well ahead of consensus of about $0.30. Reported loss from operations narrowed to $(10.9) million from $(69.3) million a year earlier, as the drag from BlueHalo purchase-accounting amortization fell from $79.7 million to $43.4 million. Net loss was $(5.1) million, or $(0.10) per diluted share, compared with $(1.44) in Q1 fiscal 2026.
Gross margin rose to 26% from 21%, reflecting the tail of intangible amortization coming down and stronger product mix. Chairman and CEO Wahid Nawabi said the company's priority is now "expanding manufacturing capacity across our sites and strengthening our supply chain so we can deliver for our customers at the speed their missions require." Read our earlier coverage of AV's first international LOCUST laser order and its Halo_Shield counter-drone kit unveil at Eurosatory 2026.
Full-Year FY27 Guidance Held
Management kept full-year fiscal 2027 guidance unchanged despite the beat: revenue of $2.125 billion to $2.225 billion, net income of $10 million to $27 million, non-GAAP adjusted EBITDA of $305 million to $325 million, and non-GAAP EPS of $3.02 to $3.34. The unchanged outlook implies management is deferring any upgrade until it has more visibility into second-half deliveries against the swelling backlog. Related reading: AeroVironment's $80.5M Titan-MS task order for Air Force base defense.
Reporting based on coverage from AeroVironment, Investing.com and 24/7 Wall St.