AeroVironment, Inc. AVAV is strengthening its revenue visibility through a rapidly expanding backlog position. As of Jan. 31, 2026, the company’s funded backlog stood at approximately $1.12 billion, reflecting growing demand for its defense technologies and unmanned systems across multiple mission areas. The increase highlights continued order momentum and improving visibility into future business activity.
One of the biggest advantages of this backlog strength is the level of future revenue support it provides. AeroVironment expects nearly 39% of its remaining performance obligations to be recognized as revenues during fiscal 2026, while the remaining 61% is expected to convert in fiscal 2027 or beyond. This visibility helps the company better align production schedules, resource allocation and operational planning.
The company is also benefiting from broader demand across autonomous systems, precision strike technologies, space systems, directed energy and cyber capabilities. Rising investments in defense modernization and mission-focused technologies continue to support contract activity and long-term order flow. This expanding pipeline could provide additional support for future revenue generation and operational growth.
While execution and delivery timing remain important, AeroVironment’s growing backlog position reflects healthy demand trends and supports stronger long-term revenue stability. The company’s expanding order pipeline also strengthens confidence in its ability to support future production activity and maintain steady business momentum.
Defense Companies Benefiting From Strong Order Pipelines
Healthy aerospace and defense demand continues to support large backlog positions across the industry, improving long-term revenue visibility and business stability. Companies like Lockheed Martin Corporation LMT and Northrop Grumman Corporation NOC are also maintaining sizeable order pipelines backed by ongoing defense and space program demand.
Lockheed Martin reported a backlog of nearly $186.4 billion as of March 31, 2026, supported by continued demand for fighter jets, missile programs and classified defense contracts.
Northrop Grumman’s backlog totaled approximately $95.6 billion as of March 31, 2026, driven by strength in missile defense, space systems and strategic deterrence programs.
Earnings Estimates for AVAV Stock
The Zacks Consensus Estimate for fiscal 2026 earnings per share suggests a year-over-year decline of 10.37%, and for fiscal 2027, estimates indicate growth of 26.94%.
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AVAV Stock Trading at a Discount
AeroVironment is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 3.59X compared with the industry average of 11.89X.
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AVAV Stock Price Performance
Over the past year, AVAV shares have fallen 1.9% against the industry’s 19.9% growth.
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AVAV’s Zacks Rank
AeroVironment currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
