AeroVironment Sees Unprecedented Defense Demand Amid Buildup

AeroVironment is riding a wave of unprecedented defense demand. The American defense contractor reported a massive $1.2 billion funded backlog and beat fiscal fourth-quarter 2026 earnings expectations. CEO Wahid Nawabi says expanding defense budgets and the rapid adoption of autonomous drones and directed-energy weapons will drive significant contract wins over the next two years, signaling a major boost for U.S. military readiness and American manufacturing.

How Are Autonomous Systems Driving AeroVironment's Growth?

During the Q4 earnings call, Nawabi made it clear that the company is expanding its manufacturing capacity and investing heavily in new technologies to keep pace with military needs. Autonomous Systems remained AeroVironment's largest business segment, accounting for 76% of the company's Q4 revenue.