TacticScaleWhat AeroVironment Does & How It Makes Money (AVAV)
Updated October 2026 · reflects AeroVironment's latest reported financials
Defense technology company making military drones, loitering munitions, and space systems. It earns revenue mainly by designing, producing, and delivering drones, munitions, and defense hardware to U.S.
How AeroVironment makes money
It earns revenue mainly by designing, producing, and delivering drones, munitions, and defense hardware to U.S. and international government agencies, plus ongoing support services and some sales to businesses. Revenue comes from two segments: Autonomous Systems, and Space, Cyber and Directed Energy.
What AeroVironment does
AeroVironment is a U.S. defense technology provider headquartered in Arlington, Virginia, and founded in 1971. Its core Autonomous Systems segment makes small and medium uncrewed aircraft systems, Kinesis command and control software, loitering munitions for precision strike, radio frequency and kinetic counter-UAS, and electronic warfare systems. The segment also covers autonomy and AI technologies and uncrewed maritime and ground systems. The Space, Cyber and Directed Energy segment supplies digital beamforming antenna tiles that can talk to several satellites at once, laser communications, space-qualified stabilization and control electronics for orbits from low Earth to cislunar, phased array antennas for hypersonic and missile test tracking, directed energy solutions, and cyber capabilities for national security. Its customers are mainly U.S. and international government agencies, plus some businesses.
Products & services
- Small and medium uncrewed aircraft systems (UAS)
- Loitering munitions / precision strike systems
- Kinesis command and control software
- Counter-UAS and electronic warfare systems
- Digital beamforming antenna tiles and laser communications for space
- Directed energy and cyber solutions
What is AeroVironment worth?
On an owner-earnings DCF, AeroVironment's most-likely value is about $74 versus a recent price near $137 (46% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$18) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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