AeroVironment, Inc. (NASDAQ:AVAV) stock rose 1.67% (As on September 10, 11:21:57 AM UTC-4, Source: Google Finance) after the company posted mixed result for in the first quarter of FY 26. The defense technology company’s quarterly performance was significantly bolstered by its recent acquisition of BlueHalo, which contributed $235.2 million in revenue. Legacy revenue grew 16% YoY to $219.5 million. The company reported a record first quarter backlog of $1.1 billion as compared to $726.6 million as of April 30, 2025 and bookings of $399 million. Despite the strong top-line growth, AeroVironment posted a net loss of -$67.4 million or -$1.44 per diluted share, compared to net income of $21.2 million or $0.75 per diluted share in the prior-year period. The loss was primarily due to $79.7 million in intangible amortization and other non-cash purchase accounting expenses related to the BlueHalo acquisition. Other loss, net, for the first quarter of fiscal 2026 was $15.1 million, as compared to $0.5 million for the first quarter of fiscal 2025.
Further, gross margin for the first quarter of fiscal 2026 was $95.1 million, an increase of 17% as compared to $81.5 million for the first quarter of fiscal 2025, reflecting higher product margin of $8.9 million and higher service gross margin of $4.8 million. Loss from operations for the first quarter of fiscal 2026 was $(69.3) million as compared to income from operations of $23.1 million for the first quarter of last fiscal year. Non-GAAP adjusted EBITDA for the first quarter of fiscal 2026 was $56.6 million as compared to $37.2 million for the first quarter of fiscal 2025.
AVAV in the first quarter of FY 26 has reported the adjusted earnings per share of 32 cents, missing the analysts’ estimates for the adjusted earnings per share of 34 cents, according to Zacks investment Research. The company had reported the adjusted revenue growth of 140 percent to $454.7 million in the first quarter of FY 26, beating the analysts’ estimates for revenue of $453.5 million. This is due to higher product sales of $154.0 million and higher service revenue of $111.2 million. The acquisition of BlueHalo on May 1, 2025 contributed to $123.7 million and $111.5 million of the current quarter product and service revenue, respectively. From a segment standpoint, Autonomous Systems (“AxS”) recorded revenue of $285.3 million and Space, Cyber and Directed Energy (“SCDE”) recorded revenue of $169.4 million.
AeroVironment reaffirmed its fiscal 2026 guidance, projecting revenue between $1.9 billion and $2.0 billion, which aligns with the analyst consensus of $1.994 billion. The company expects adjusted earnings per share of $3.60 to $3.70, above the consensus estimate of $3.44. The company noted it has visibility of 82% to the midpoint of its fiscal year 2026 revenue guidance range as of September 9, 2025.