AeroVironment Inc. (NASDAQ:AVAV) is one of the best AI stocks with huge upside potential. On March 10, AeroVironment reported FQ3 2026 revenue of $408.0 million, representing a 143% increase year-over-year. This growth was driven by the acquisition of BlueHalo, which contributed $176.5 million to the quarter’s total product & service revenue. While the Autonomous Systems segment led with $278.7 million in revenue, the company also saw demand reflected in a record-funded backlog of $1.1 billion.

Despite higher sales, the company faced non-cash charges that impacted the bottom line. AeroVironment recognized a $151.3 million goodwill impairment charge within its Space reporting unit following a stop-work order on the BADGER phased array antenna systems for the Space Force. Additionally, gross margin as a percentage of revenue decreased to 24%, down from 38% the prior year, due to an increased proportion of service revenue from BlueHalo and $43.9 million in intangible amortization & purchase accounting expenses. These factors led to a loss from operations of $179.0 million for the quarter.

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For FQ3, AeroVironment Inc. (NASDAQ:AVAV) reported a net loss of $156.6 million, or $3.15 per diluted share. Looking ahead, the company has updated its full-year fiscal 2026 guidance, projecting total revenue between $1.85 billion and $1.95 billion, supported by a strong book-to-bill ratio of 1.6 for the first nine months of the fiscal year.

AeroVironment Inc. (NASDAQ:AVAV) is a global defense technology leader that designs, develops, produces, delivers, and supports a portfolio of robotic systems & related services in the US and internationally. It operates in two segments: Autonomous Systems; and Space, Cyber & Directed Energy.

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