AeroVironment's stock plummeted 7.99% in after-hours trading following the release of its fiscal third-quarter results, which fell short of analyst expectations and included a significant impairment charge.

The defense technology company reported Q3 revenue of $408 million, missing the consensus estimate of $475.6 million. Adjusted earnings per share came in at $0.64, below the expected $0.68-$0.69. The company also recorded a $151.3 million goodwill impairment in its Space business unit, related to a stop-work order on a key contract with the U.S. Space Force's SCAR program.

Furthermore, AeroVironment lowered its full-year fiscal 2026 guidance, now expecting revenue between $1.85 billion and $1.95 billion, compared to the prior estimate of nearly $2 billion. Adjusted EPS guidance was also reduced to a range of $2.75 to $3.10, down from previous expectations and below the consensus estimate of $3.31. The company cited revenue timing issues and adjustments in its Space business for the disappointing results and outlook.