AeroVironment achieved record Q2 FY2026 revenue of $472.5 million (up 151% YoY) with bookings of $1.4 billion and a book-to-bill ratio of 2.9. The company recently secured a five-year $874.26 million IDIQ contract from the U.S. Army Contracting Command. The organization has successfully integrated BlueHalo acquisition while maintaining strong legacy business growth of 21% organically.
Cyborg Score Rationale
AeroVironment demonstrates strong financial health with a gross margin of 26.5%, low debt-to-equity ratio of 0.19, and current ratio of 5.1. The company benefits from record defense contract backlog, expanded product portfolio across autonomous systems, and strategic positioning in the AI/autonomous weapons modernization cycle.
Top Insights
Record Q2 FY2026 results with $472.5M revenue (151% YoY growth) and all-time high bookings of $1.4B demonstrate exceptional demand for autonomous defense systems
Major multi-year contracts including $874M Army IDIQ and $13.2M P550 UAS contract provide long-term revenue visibility and margin expansion opportunity
Strategic BlueHalo acquisition adds space/cyber/directed energy capabilities to complement core autonomous systems, creating integrated multi-domain defense platform
Analyst consensus of "Strong Buy" with $370.47 average 12-month price target (44% upside) reflects confidence in sustained defense spending and company execution
Named Competitors
Kratos Defense & Security Solutions — Unmanned systems and defense electronics
Red Cat Holdings — Commercial and tactical drone systems