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AeroVironment shares fall despite $117.3 million Army drone contract
AeroVironment secured a $117.3 million Basic Ordering Agreement for P550 drones under the Army's Long Range Reconnaissance program on July 20, 2026.
AeroVironment’s stock has been under pressure even after the company won a new U.S. Army procurement award tied to tactical drones. MarketBeat Ratings said the stock is down more than 40% year-to-date, with uncertainty tied to the Army’s SCAR program cited alongside heightened analyst attention.
The article says AeroVironment secured a definitive $117.3 million Basic Ordering Agreement under the U.S. Army’s Long Range Reconnaissance program on July 20, 2026, for P550 drones. The contract is described as an initial full-rate procurement under that agreement.
MarketBeat Ratings frames the award within a broader shift in defense spending toward autonomous, uncrewed systems and advanced loitering munitions. It points to the Pentagon’s Replicator initiative, which calls for rapid deployment of thousands of attritable, uncrewed systems, as context for why defense capital may be rotating toward companies like AeroVironment.