AeroVironment, Inc. (AVAV) had a rough Tuesday evening, with shares sliding in extended trading after the defense technology company delivered second-quarter results that disappointed on the bottom line. The culprit? Earnings that fell well short of what Wall Street expected, even as revenue surged.

Breaking Down the Numbers

AeroVironment reported adjusted earnings of 44 cents per share for the quarter, missing the analyst consensus estimate of 78 cents by a substantial margin. That's the kind of miss that makes investors nervous, regardless of what else looks good in the report.

The revenue picture told a different story. The company posted quarterly revenue of $472.51 million, topping the Street estimate of $468.48 million. Even more impressive, that figure represents a massive jump from the $188.46 million in revenue from the same quarter last year—more than doubling year-over-year.

Despite the earnings miss, CEO Wahid Nawabi struck an optimistic tone. "AV is operating from a position of strength as evidenced by our record second quarter results, all-time high bookings and long-term contract wins," he said. Nawabi emphasized the company's portfolio of capabilities and technologies designed to meet accelerating market demand, positioning AeroVironment as "a partner of choice in critical moments."

The Guidance Puzzle

Here's where things get interesting. AeroVironment lowered its fiscal 2026 adjusted EPS guidance to a range of $3.40 to $3.55, down from the analyst estimate of $3.64. At the same time, the company raised its revenue guidance to between $1.95 billion and $2 billion, compared to the $2 billion consensus.

So the company expects to bring in more money but make less profit per share—a combination that explains why investors weren't thrilled.

Market Reaction

AeroVironment stock fell 5.98% to $281.42 in Tuesday's after-hours session, reflecting investor concerns about profitability despite the strong revenue growth and record bookings the company highlighted.