Short answer
AeroVironment Inc (AVAV) filed its fiscal 2026 10-K annual report with the SEC on Jun 29, 2026. It reported revenue of $2.0B (+140.9% year over year) and net income of −$265M.
- Top risk flagged: U.S. govt. budget & spending risk: 85% revenue from U.S. govt., with 63% from DoD; DOGE spending review creates funding uncertainty as of FY2026
FY2026 key financial metrics · XBRL
- Revenue
- $2.0B
- +140.9% YoY
- Net income
- −$265M
- −707.8% YoY
- Operating margin
- -15.7%
- −20.7 pp YoY
- Gross margin
- 25.3%
- −13.5 pp YoY
- EPS (diluted)
- −$5.40
- −448.4% YoY
- ROE
- -6.0%
- −10.9 pp YoY
- Operating cash flow
- −$78M
- −5848.7% YoY
Source: XBRL data from the AeroVironment Inc (AVAV) FY2026 10-K on SEC EDGAR. USD.
AeroVironment Inc FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Defense tech provider delivering autonomous, precision strike, counter-UAS, space, directed energy, and cyber systems globally
- New segments post-May 1, 2025: Two reportable segments formed; Autonomous Systems and Space, Cyber, and Directed Energy after BlueHalo acquisition
- Strategic shift: Enhanced capabilities from BlueHalo acquisition including RF systems, digital phased array antennas, directed energy weapons, and cyber mission solutions
- Quantitative highlight: Funded backlog rose to $1,183M from $727M YoY; 3,991 full-time employees with 2,366 in R&D and engineering
- Noteworthy fact: Launch of new product Mayhem 10 supporting multi-role ISR, EW, decoy, comms relay, and precision strike across air, ground, maritime platforms
Management Discussion & Analysis
- Revenue $1.98B, up 141% YoY from $821M; product revenue up $723M including $526M from BlueHalo & ESAero acquisitions, service revenue up $434M
- Gross margin down to 25% from 39% due to increased amortization and higher service revenue proportion; operating loss $(311)M vs income $41M
- Best segment AxS: revenue $1.36B (+65%), adjusted EBITDA $289M (+97%); worst SCDE segment loss with adjusted EBITDA $(2.6)M on $619M revenue (new from BlueHalo acquisition)
- Cash flow: Operating cash used $(78.4)M vs $(1.3)M YoY; Investing cash used $1.23B due to acquisitions; Financing cash provided $1.65B from equity and notes to repay debt
- Forward outlook: $16.3M purchase option on Huntsville building executed; expect stable funding from operations and credit facilities; risks from goodwill impairment in Space segment ($241M charge)
Risk Factors
- U.S. govt. budget & spending risk: 85% revenue from U.S. govt., with 63% from DoD; DOGE spending review creates funding uncertainty as of FY2026
- Geopolitical supply risk: rare earth metals mostly sourced from China; Jan 2024 China sanctions and Mar 2025 export controls on AeroVironment may limit component availability
- Operational supply chain risk: $127.7M R&D spend (6% of revenue FY2026); reliance on sole-source specialized suppliers without long-term contracts increases component scarcity risk
- Competitive disruption: intense competition in UAS market from Lockheed Martin, Boeing, Anduril, Textron, and others; rapid tech change and AI integration essential to maintain advantage
- Financial leverage risk: $747.5M convertible notes outstanding (0% interest, maturity 2030); previous $700M term loan repaid in 2025 but revolving credit remains; debt covenants may restrict flexibility
Generated from the filing text; verify against the original. How to read a 10-K
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