AeroVironment's stock experienced a sharp pre-market plunge of 9.26% on Wednesday, following the release of disappointing fiscal third-quarter results and a significant reduction in full-year guidance.

The defense technology company reported Q3 revenue of $408 million, missing analyst estimates of $475.6 million, while adjusted earnings per share of $0.64 fell short of expectations. More significantly, the company recorded a $151.3 million non-cash goodwill impairment charge related to a stop-work order on a key U.S. Space Force contract for the Satellite Communications Augmentation Resource (SCAR) program.

Adding to investor concerns, AeroVironment substantially lowered its fiscal 2026 outlook, now expecting adjusted EPS between $2.75 and $3.10, down from previous guidance of $3.40 to $3.55 and below consensus estimates. Revenue guidance was also reduced to $1.85-$1.95 billion. Management cited revenue timing issues, adjustments in its Space business, and delays in government funding which postponed several anticipated orders.