Revenue has surged to over $640M in a single quarter, but this growth is accompanied by extreme gross margin volatility (ranging from 17.1% to 39.6%) and operating losses that indicate the company has not yet achieved operating leverage at scale.
AeroVironment, Inc. (AVAV) annual income statement — 22-year revenue, gross profit & net income history
| Metric | TTM | Apr'26 | Apr'25 | Apr'24 | Apr'23 | Apr'22 | Apr'21 | Apr'20 | Apr'19 | Apr'18 | Apr'17 | Apr'16 | Apr'15 | Apr'14 | Apr'13 | Apr'12 | Apr'11 | Apr'10 | Apr'09 | Apr'08 | Apr'07 | Apr'06 | Apr'05 |
|---|
| Sales/Revenue | 2B | 1.98B | 820.63M | 716.72M | 540.54M | 445.73M | 394.91M | 367.3M | 314.27M | 268.42M | 233.1M | 233.74M | 259.4M | 251.7M | 240.15M | 325.01M | 292.5M | 249.52M | 247.66M | 215.75M | 173.72M | 139.36M | 105.16M |
| Revenue Growth % | 84.44% | 140.89% | 14.5% | 32.59% | 21.27% | 12.87% | 7.52% | 16.87% | 17.08% | 15.15% | -0.27% | -9.89% | 3.06% | 4.81% | -26.11% | 11.11% | 17.23% | 0.75% | 14.79% | 24.19% | 24.66% | 32.53% | - |
| Cost of Goods Sold | 1.47B | 1.48B | 497.69M | 432.79M | 367.02M | 304.5M | 230.35M | 214.19M | 185.87M | 160.74M | 135.68M | 127.86M | 155.13M | 158.09M | 147.62M | 195.68M | 175.35M | 152.69M | 159.06M | 137.2M | 105.24M | 82.6M | 58.55M |
| COGS % of Revenue | - | 74.67% | 60.65% | 60.38% | 67.9% | 68.31% | 58.33% | 58.32% | 59.14% | 59.88% | 58.2% | 54.7% | 59.8% | 62.81% | 61.47% | 60.21% | 59.95% | 61.19% | 64.23% | 63.59% | 60.58% | 59.27% | 55.68% |
| Gross Profit | 530.12M | 500.64M | 322.94M | 283.93M | 173.51M | 141.24M | 164.56M | 153.1M | 128.4M | 107.69M | 97.43M | 105.87M | 104.27M | 93.61M | 92.54M | 129.33M | 117.15M | 96.83M | 88.6M | 78.55M | 68.48M | 56.76M | 46.61M |
| Gross Margin % | 26.47% | 25.33% | 39.35% | 39.62% | 32.1% | 31.69% | 41.67% | 41.68% | 40.86% | 40.12% | 41.8% | 45.3% | 40.2% | 37.19% | 38.53% | 39.79% | 40.05% | 38.81% | 35.77% | 36.41% | 39.42% | 40.73% | 44.32% |
| Gross Profit Growth % | - | 55.03% | 13.74% | 63.64% | 22.85% | -14.17% | 7.48% | 19.24% | 19.24% | 10.53% | -7.98% | 1.54% | 11.38% | 1.16% | -28.45% | 10.4% | 20.99% | 9.29% | 12.79% | 14.7% | 20.65% | 21.78% | - |
| Operating Expenses | 782.72M | 811.64M | 282.14M | 212.11M | 352.18M | 151.12M | 121.25M | 105.97M | 94.58M | 77.26M | 76.66M | 85.8M | 102.25M | 81.19M | 82.49M | 86.26M | 83.2M | 66.94M | 56.04M | 50.1M | 37.98M | 40.43M | 26.35M |
| OpEx % of Revenue | - | 41.06% | 34.38% | 29.59% | 65.15% | 33.9% | 30.7% | 28.85% | 30.09% | 28.78% | 32.89% | 36.71% | 39.42% | 32.26% | 34.35% | 26.54% | 28.44% | 26.83% | 22.63% | 23.22% | 21.86% | 29.01% | 25.06% |
| Selling, General & Admin | 423.45M | 443.25M | 158.82M | 112.55M | 97.32M | 95.5M | 60.51M | 60.32M | 55.95M | 49.8M | 46.86M | 50.06M | 55.33M | 52.29M | 51.52M | 55.28M | 47.43M | 42.43M | 34.25M | 33.66M | 24.04M | 24.34M | 16.55M |
| SG&A % of Revenue | - | 22.42% | 19.35% | 15.7% | 18% | 21.42% | 15.32% | 16.42% | 17.8% | 18.55% | 20.1% | 21.42% | 21.33% | 20.77% | 21.45% | 17.01% | 16.22% | 17% | 13.83% | 15.6% | 13.84% | 17.46% | 15.74% |
| Research & Development | 118.53M | 127.68M | 158.76M | 159.87M | 134.97M | 113.74M | 105.16M | 54.58M | 94.99M | 67.48M | 58.23M | 69.83M | 71.27M | 44.16M | 63.71M | 30.98M | 35.77M | 24.51M | 21.8M | 16.44M | 13.94M | 16.1M | 9.8M |
| R&D % of Revenue | - | 6.46% | 19.35% | 22.31% | 24.97% | 25.52% | 26.63% | 14.86% | 30.23% | 25.14% | 24.98% | 29.87% | 27.47% | 17.54% | 26.53% | 9.53% | 12.23% | 9.82% | 8.8% | 7.62% | 8.02% | 11.55% | 9.32% |
| Other Operating Expenses | -1000K | 240.71M | -35.44M | -60.31M | 119.89M | -58.12M | -44.43M | -8.93M | -56.36M | -40.02M | -28.42M | -34.08M | -24.34M | -15.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -252.59M | -311M | 40.8M | 71.82M | -178.66M | -9.89M | 43.31M | 47.13M | 33.83M | 30.43M | 20.77M | 20.07M | 2.01M | 12.42M | 3.8M | 43.08M | 33.95M | 29.89M | 32.55M | 28.44M | 30.5M | 16.32M | 20.26M |
| Operating Margin % | -12.61% | -15.73% | 4.97% | 10.02% | -33.05% | -2.22% | 10.97% | 12.83% | 10.76% | 11.34% | 8.91% | 8.59% | 0.78% | 4.93% | 1.58% | 13.25% | 11.61% | 11.98% | 13.14% | 13.18% | 17.56% | 11.71% | 19.26% |
| Operating Income Growth % | - | -862.34% | -43.2% | 140.2% | -1707.05% | -122.83% | -8.11% | 39.35% | 11.17% | 46.52% | 3.46% | 896.57% | -83.78% | 226.64% | -91.17% | 26.88% | 13.6% | -8.19% | 14.45% | -6.74% | 86.84% | -19.41% | - |
| EBITDA | -339.31M | -311M | 81.79M | 107.57M | -129.41M | 50.94M | 62.58M | 57.02M | 41.49M | 36.41M | 25.82M | 23.93M | 10.38M | 21.57M | 14.74M | 52.05M | 44.55M | 38.87M | 37.91M | 32.29M | 33.4M | 18.32M | 21.31M |
| EBITDA Margin % | -16.94% | -15.73% | 9.97% | 15.01% | -23.94% | 11.43% | 15.85% | 15.53% | 13.2% | 13.56% | 11.08% | 10.24% | 4% | 8.57% | 6.14% | 16.01% | 15.23% | 15.58% | 15.31% | 14.97% | 19.23% | 13.15% | 20.27% |
| EBITDA Growth % | -578.81% | -480.22% | -23.97% | 183.13% | -354.05% | -18.6% | 9.74% | 37.42% | 13.97% | 41.01% | 7.92% | 130.5% | -51.89% | 46.37% | -71.68% | 16.83% | 14.62% | 2.54% | 17.39% | -3.31% | 82.26% | -14.01% | - |
| D&A (Non-Cash Add-back) | -90.25M | 0 | 41M | 35.75M | 49.25M | 60.83M | 19.26M | 9.89M | 7.67M | 5.98M | 5.05M | 3.85M | 8.37M | 9.15M | 10.94M | 8.97M | 10.6M | 8.98M | 5.36M | 3.85M | 2.9M | 2M | 1.05M |
| EBIT | -249.02M | -311M | 63.39M | 73.7M | 11.94M | -8.95M | 50.28M | 46.3M | 38.22M | 31.45M | 22.1M | 20.77M | 2.45M | 15.81M | 3.8M | 43.08M | 33.95M | 29.89M | 32.55M | 28.44M | 30.5M | 15.85M | 20.26M |
| Net Interest Income | 15.94M | -5.61M | -2.19M | -4.22M | -9.37M | -5.44M | -618K | 4.83M | 4.67M | 2.24M | 1.62M | 1.03M | 882K | 855K | 726K | 462K | 277K | 195K | 1.24M | 0 | 0 | 0 | 0 |
| Interest Income | 4.14M | 0 | 0 | 0 | 0 | 0 | 0 | 4.83M | 4.67M | 2.24M | 1.62M | 1.03M | 882K | 855K | 726K | 462K | 277K | 195K | 1.24M | 0 | 0 | 0 | 0 |
| Interest Expense | -11.8M | 5.61M | 2.19M | 4.22M | 9.37M | 5.44M | 618K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 22.18M | 5.37M | 3.71M | -10.27M | -12.17M | -4.67M | -19.43M | 48K | 12.71M | 908K | 1.67M | -1.7M | -121K | 2.48M | 6.97M | 462K | 277K | 195K | 1.24M | 3.79M | 1.7M | -268K | -44K |
| Pretax Income | -230.41M | -305.62M | 44.5M | 61.56M | -190.83M | -14.55M | 23.88M | 47.18M | 46.53M | 31.33M | 22.44M | 18.38M | 1.89M | 14.9M | 10.77M | 43.54M | 34.23M | 30.08M | 33.8M | 32.24M | 32.2M | 16.29M | 20.21M |
| Pretax Margin % | -11.51% | -15.46% | 5.42% | 8.59% | -35.3% | -3.27% | 6.05% | 12.85% | 14.81% | 11.67% | 9.63% | 7.86% | 0.73% | 5.92% | 4.49% | 13.4% | 11.7% | 12.06% | 13.65% | 14.94% | 18.54% | 11.69% | 19.22% |
| Income Tax | -8.29M | -23.06M | 882K | 1.89M | -14.66M | -10.37M | 539K | 5.85M | 4.64M | 9.8M | 4.76M | 2.98M | -1M | 1.18M | 347K | 13.09M | 8.32M | 9.37M | 9.55M | 10.85M | 11.48M | 4.85M | 5.53M |
| Effective Tax Rate % | 3.6% | 7.54% | 1.98% | 3.07% | 7.68% | 71.25% | 2.26% | 12.39% | 9.97% | 31.28% | 21.21% | 16.23% | -52.93% | 7.91% | 3.22% | 30.06% | 24.3% | 31.13% | 28.26% | 33.66% | 35.66% | 29.77% | 27.36% |
| Net Income | -202.82M | -265.12M | 43.62M | 59.67M | -176.21M | -4.19M | 23.33M | 41.07M | 47.44M | 17.86M | 13.1M | 8.97M | 2.9M | 13.72M | 10.43M | 30.45M | 25.91M | 20.72M | 24.25M | 21.39M | 20.72M | 11.41M | 14.68M |
| Net Margin % | -10.13% | -13.41% | 5.32% | 8.32% | -32.6% | -0.94% | 5.91% | 11.18% | 15.09% | 6.65% | 5.62% | 3.84% | 1.12% | 5.45% | 4.34% | 9.37% | 8.86% | 8.3% | 9.79% | 9.91% | 11.93% | 8.19% | 13.96% |
| Net Income Growth % | -351.54% | -707.81% | -26.89% | 133.86% | -4107.55% | -117.95% | -43.2% | -13.42% | 165.57% | 36.36% | 46.11% | 209.71% | -78.9% | 31.57% | -65.76% | 17.53% | 25.07% | -14.56% | 13.37% | 3.22% | 81.59% | -22.29% | - |
| Net Income (Continuing) | -222.13M | -282.56M | 43.62M | 59.67M | -176.17M | -4.18M | 23.34M | 41.34M | 41.89M | 21.53M | 17.68M | 15.39M | 2.9M | 13.72M | 0 | 30.45M | 25.91M | 20.72M | 24.25M | 21.39M | 20.72M | 11.21M | 14.68M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -265K | 5.53M | -3.89M | -4.6M | -6.43M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 241K | 14K | 0 | 4K | 23K | 239K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -4.07 | -5.40 | 1.55 | 2.18 | -6.94 | -0.36 | 1.39 | 1.72 | 1.97 | 0.84 | 0.56 | 0.39 | 0.13 | 0.60 | 0.47 | 1.36 | 1.17 | 0.94 | 1.11 | 1.00 | 1.22 | 5.35 | 7.31 |
| EPS Growth % | -47.17% | -448.39% | -28.9% | 131.41% | -1827.78% | -125.9% | -19.19% | -12.69% | 134.52% | 50% | 43.59% | 200% | -78.33% | 27.66% | -65.44% | 16.24% | 24.47% | -15.32% | 11% | -18.03% | -77.2% | -26.81% | - |
| EPS (Basic) | - | -5.40 | 1.56 | 2.19 | -6.94 | -0.36 | 1.41 | 1.74 | 2.00 | 0.86 | 0.57 | 0.39 | 0.13 | 0.61 | 0.47 | 1.40 | 1.20 | 0.97 | 1.15 | 1.08 | 1.39 | 6.06 | 8.07 |
| Diluted Shares Outstanding | 49.82M | 49.09M | 28.17M | 27.33M | 25.04M | 24.69M | 24.36M | 24.09M | 24.07M | 23.81M | 23.31M | 23.15M | 23.15M | 22.72M | 22.39M | 22.32M | 22.08M | 21.98M | 21.78M | 21.37M | 16.99M | 2.13M | 2.01M |
| Basic Shares Outstanding | 49.82M | 49.09M | 28.02M | 27.2M | 25.04M | 24.69M | 24.05M | 23.81M | 23.66M | 23.47M | 23.06M | 22.94M | 22.87M | 22.35M | 22.07M | 21.78M | 21.59M | 21.39M | 21.02M | 19.77M | 14.95M | 1.88M | 1.82M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying AVAV stock.
For fiscal year 2026, AeroVironment, Inc. (AVAV) reported total revenue of $1.98B. This represents a 1779.9% increase compared to $105.2M in 2005.
AeroVironment, Inc. (AVAV) reported a net loss of $265.1M for the fiscal year ending 2026.
AeroVironment, Inc. (AVAV) reported an operating income of $-311.0M, resulting in an operating profit margin of -15.7%. This margin reflects the operational efficiency of the business before interest and taxes.
AeroVironment, Inc. (AVAV) generated $500.6M in gross profit for the year, representing a gross profit margin of 25.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent profitability gap
Metrics are mathematically derived from official filings.
Exceptional but Normalizing Top-Line Momentum
Revenue growth has been explosive, with the last five quarters averaging over 135% YoY, suggesting the Switchblade TMS segment is driving a major demand inflection, as noted in recent company filings.
The growth trajectory shows a clear acceleration from mid-single digits in early FY25 to triple-digit rates starting in FY26, indicating a successful pivot to higher-volume TMS deliveries. However, sequential revenue growth appears to be stabilizing, with Q1 FY27 revenue of $480.5M flat versus Q4 FY26, which may signal a normalization after the initial surge. This pattern is consistent with lumpy defense procurement cycles and raises questions about the durability of this growth pace absent new major contract awards.
Gross Margin Volatility Masks Core Profitability
Gross margin has swung dramatically from 43.0% in Q1 FY25 to as low as 17.1% in Q3 FY26, a pattern that suggests significant mix shifts between high-margin legacy systems and lower-margin, high-volume new contracts.
The pronounced margin volatility indicates the company's product mix is highly sensitive to contract type and delivery timing. Periods with high gross margins likely reflect profitable legacy hardware sales, while lower-margin quarters may correspond to initial, high-cost production ramp-ups for large TMS orders. The current Q1 FY27 margin of 25.9% sits below the historical average, implying that sustaining high-volume growth may require sacrificing near-term margin structure.
Operating Leverage Remains Elusive at Scale
Despite revenue scaling from ~$190M to over $640M quarterly, operating income has turned deeply negative, with SG&A and R&D overhead consuming more than 100% of gross profit in recent periods.
The company's operating structure exhibits severe diseconomies of scale, where growth in the top line has not translated to improved operating income. SG&A and R&D costs have grown nearly in lockstep with revenue, preventing the realization of operating leverage. This suggests that the current growth phase is being funded by heavy investment in R&D and overhead expansion, which will need to be reversed to achieve positive operating margins.
Net Income Distorted by One-Time Charges
The Q3 FY26 net loss of -$156.6M appears heavily impacted by non-cash or one-time items, as it is vastly disproportionate to the operating loss of -$20.8M for the period.
A net loss nearly eight times larger than the operating loss suggests the presence of significant non-operating charges, such as acquisition-related costs or asset impairments. This underscores the importance of focusing on operating metrics to assess core business performance. Furthermore, consistent negative EPS, including a Q1 FY27 miss versus estimates, indicates that reported profitability is not yet reflecting the operational performance of the underlying business.
R&D Intensity Continues to Pressure Margins
R&D spending has been elevated, ranging from 5% to over 20% of revenue in recent quarters, reflecting a heavy investment cycle that is currently masking the profitability of the core hardware business.
The company's cost structure is dominated by significant R&D investment, which spiked in Q4 FY25 and Q4 FY26. While this may be necessary to develop next-generation platforms like HAPS and maintain technological leadership, it is the primary reason operating margins remain deeply negative. Management's ability to control these expenses and transition from R&D to production-phase efficiencies is critical for the path to profitability.
Sustainability of Growth Amid Margin Pressure
The strongest challenge to the investment thesis is whether the recent high-growth, low-margin phase is a temporary transition or a new, less profitable equilibrium as the company scales into a different product mix.
A short-seller would focus on the company's inability to convert record revenue into positive earnings, highlighting the -2.3% operating margin in Q1 FY27 despite 5.7% revenue growth. The persistent negative margins, even at a larger revenue base, suggest that the incremental cost to win and fulfill new contracts may outweigh the gross profit they generate. Furthermore, the valuation premium compared to peers like Kratos is not supported by superior profitability, creating risk if growth merely funds cash burn.