AVAV: Defense Demand Surges as Earnings Approach
AeroVironment (NASDAQ: AVAV) is at the center of two powerful catalysts converging in March 2026. U.S. military strikes on Iran over the weekend sent defense stocks surging at Monday's open, with AVAV briefly touching $303 before reversing sharply to close at $206 — an 18.3% decline from Friday's close of $252.25. The wild intraday swing, on volume six times the daily average, underscores just how much geopolitical risk is now embedded in this stock's price. Adding to the volatility, AeroVironment reports Q3 FY2026 earnings on March 10 — just eight days away. The company's Switchblade loitering munitions and Puma surveillance drones have become standard-issue equipment in modern conflict zones, and a recent $186 million task order from the U.S. Army reinforces that demand pipeline. But reports that AVAV could lose a valuable contract triggered the afternoon selloff, leaving investors weighing massive revenue growth against margin compression and contract risk. With a $10.3 billion market cap and shares trading 51% below their 52-week high of $417.86, the setup heading into earnings is one of the most consequential for any defense name this quarter.