AeroVironment Inc. (NASDAQ:AVAV) shares are trading higher Wednesday after the company posted better-than-expected fourth-quarter results and strong revenue growth, driven by demand in its defense technology segments.

What To Know: The drone and defense contractor reported fourth-quarter earnings of $1.61 per share, above analyst expectations of $1.42, according to Benzinga Pro.

Quarterly revenue came in at $275.1 million, beating the consensus estimate of $242.7 million and representing a 40% year-over-year increase. The company attributed the revenue jump to higher product sales across its Loitering Munition Systems, MacCready Works and Uncrewed Systems divisions, which saw respective revenue increases of 87%, 24% and 9%.

CEO Wahid Nawabi highlighted a strong fiscal year-end backlog of $726.6 million and total bookings of $1.2 billion, nearly double the previous year, indicating sustained demand. Nawabi credited strategic investments in advanced defense systems and the recent acquisition of BlueHalo for strengthening the company's position in modern warfare technologies.

AeroVironment also projected adjusted earnings of $2.80 to $3 per share for fiscal 2026 versus estimates of $3.72 per share. The company forecasted full-year revenue between $1.9 billion and $2 billion versus estimates of $1.98 billion.

“With integrated solutions across every domain of modern warfare, enhanced innovation and domestic manufacturing scale, we believe we are well positioned to meet the rising demand across the globe and drive strong growth and value creation in fiscal year 2026 and beyond,” Nawabi said in the earnings release.

AVAV Price Action: AeroVironment shares were up 22.8% at $237.28 at the time of publication Wednesday, according to Benzinga Pro.

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