Why AeroVironment Stock Is Losing Altitude in After-Hours Trading
Key Points
AeroVironment surpassed analysts' revenue expectations for the second quarter of 2026.
Management downwardly revised fiscal 2026 guidance.
The current sell-off provides a potential buying opportunity for investors willing to endure some volatility.
- 10 stocks we like better than AeroVironment ›
Shares of drone manufacturer AeroVironment (NASDAQ: AVAV) are encountering turbulence late this afternoon. The company reported disappointing financial results for the second quarter of 2026, and management's downward revision of guidance for fiscal 2026 is also contributing to the stock losing altitude this afternoon.
As of 4:50 p.m. ET, shares of AeroVironment are down 4.7% from their closing price of $281.42 at 4:00 p.m.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Shrugging off the company's strong year-over-year revenue growth
Despite a strong performance at the top of the income statement, investors are placing more weight on the company's inability to meet analysts' profitability expectations. While analysts anticipated the company would report adjusted diluted earnings per share (EPS) of $0.79, AeroVironment posted adjusted EPS of $0.44, a 6.4% year-over-year decrease.
In addition to examining the company's recent performance, management's increasingly bearish outlook on the remainder of fiscal 2026 is prompting investors to consider move the drone stock from their portfolios. AeroVironment now expects to report adjusted diluted EPS of $3.40 to $3.55 -- lower than the adjusted diluted EPS of $3.60 to $3.70 that it projected in September, when it reported Q1 2026 financial results.
Reporting Q2 2026 revenue of $472.5 million, AeroVironment achieved a 151% year-over-year increase on the top line, surpassing analysts' estimates of $465.6 million.
Now may be a good time to fly AeroVironment into your portfolio
While investors are sending AeroVironment stock lower in after-hours trading, those with the resilience to withstand some near-term turbulence would be wise to consider shares of this leading drone stock. The company projects strong revenue growth in fiscal 2026, and while it expects to report lower adjusted diluted EPS than it did several months ago, this is hardly enough to justify a steep sell-off.
Should you invest $1,000 in AeroVironment right now?
Before you buy stock in AeroVironment, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AeroVironment wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $521,982!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,137,459!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 194% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of December 8, 2025
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment. The Motley Fool has a disclosure policy.
Recommended Articles
