Why AeroVironment Stock Fell Today

By Joe Tenebruso – Dec 10, 2025 at 6:49PMKey PointsAeroVironment's $4 billion purchase of BlueHalo is accelerating its revenue gains.Yet integration costs are taking a toll on near-term profitability. These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: AVAVAeroVironmentMarket Cap$14BToday's Changeangle-down(-12.85%) $36.17Current Price$245.25Price as of December 10, 2025 at 4:00 PM ETThe drone leader's previously high-flying stock likely won't stay down for long.Shares of AeroVironment (AVAV 12.85%) declined more than 12% on Wednesday after the unmanned aerial vehicle manufacturer's earnings fell short of investors' expectations. Image source: Getty Images. BlueHalo is boosting sales growth, but acquisition costs weighed on profits AeroVironment's revenue soared 151% year over year to $472.5 million in its fiscal second quarter ended Nov. 1. The gains were fueled by the defense contractor's acquisition of BlueHalo, a provider of space technology and autonomous systems, in May. "We have built a portfolio of integrated capabilities and advanced technologies to meet the market's accelerating demand and serve as a partner of choice in critical moments," CEO Wahid Nawabi said in a press release. Excluding the impact of BlueHalo, AeroVironment's revenue rose a solid 21% to $227.4 million. ExpandNASDAQ: AVAVAeroVironmentToday's Change(-12.85%) $-36.17Current Price$245.25Key Data PointsMarket Cap$14BDay's Range$242.85 - $269.7352wk Range$102.25 - $417.86Volume4.5MAvg Vol1.1MGross Margin26.45%Dividend YieldN/A In turn, AeroVironment's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 74% to $45 million.Advertisement However, the drone maker's adjusted earnings per share came in at $0.44, which was below Wall Street's estimates. Analysts had expected adjusted per-share profits of $0.79, according to Yahoo! Finance. AeroVironment remains well-positioned for a drone-based future Management guided for full-year revenue of $1.95 billion to $2 billion and adjusted EBITDA of $300 million to $320 million. The company also expects to generate adjusted earnings of $3.40 to $3.55 per share. "We are confident that our unmatched innovation, strategic partnerships, and agility to expand our manufacturing capacity enable us to address evolving defense needs and lead the generational shift in defense over the longer term," Nawabi said.About the AuthorJoe Tenebruso is a contributing Motley Fool stock market analyst. Previously, Joe was an investment analyst for Stock Advisor, Income Investor, and Crypto Society, as well as several other market-beating investing services. He graduated summa cum laude from Rutgers University with a Bachelor of Science in Finance.tmfguardianX@Tier1InvestorRead NextDec 9, 2025 •By Scott LevineWhy AeroVironment Stock Is Losing Altitude in After-Hours TradingDec 1, 2025 •By John BromelsWhat Every AeroVironment Investor Should Know Before BuyingNov 28, 2025 •By John BromelsEvaluating AVAV Stock's Actual PerformanceNov 6, 2025 •By Scott LevineWhy AeroVironment Stock Is Losing Altitude TodayNov 6, 2025 •By Jeremy BowmanWhy AeroVironment Stock Jumped 18% in OctoberOct 6, 2025 •By Courtney CarlsenHere's Why AeroVironment Stock Jumped 30.5% in September