AeroVironment (AVAV) is seen as the next Palantir (PLTR) with a 60% rally this year backed by positive fundamentals. However, a 40% correction from highs triggered by a Q2 2026 earnings miss has led to a good accumulation opportunity.

The defense technology company identifies itself with capabilities across air, land, sea, space, and cyber. For FY 2026, AeroVironment is expected to reach $2 billion in revenue, supported by sustained growth in the aerospace & defense sector.

With a funded order backlog of $1.1 billion and unfunded order backlog of $3.0 billion, AeroVironment has clear revenue visibility. Recent orders worth $874 million from the U.S. Army Contracting Command for unmanned aerial systems and counter-UAS systems further support growth.

In Q2 2026, AeroVironment reported robust revenue growth of 151% YoY to $472.5 million. Despite an operating loss of $30 million, the company expects FY 2026 revenue of $1.95 to $2 billion and adjusted EBITDA of $310 million. Research and development expenses are at 7.5% of total revenue, indicating a focus on innovation.

Analysts have a consensus “Strong Buy” rating on AVAV stock, with a mean price target of $392.60, implying an upside potential of 61.7%. Piper Sandler assigned an “Overweight” rating based on AeroVironment’s evolution into a diversified defense platform. Despite a high forward P/E ratio, growth visibility makes AVAV attractive.

Read more at Yahoo Finance: AeroVironment Is Supposed to Be the Next Palantir, But Its Earnings Disappointed in Q2. How Should You Play AVAV Stock?