Could AeroVironment's (AVAV) Open-Standards Push Redefine Its Competitive Edge in Uncrewed Systems?

• On October 31, 2025, OpenJAUS, LLC announced a collaboration with AeroVironment to integrate the JAUS standard into AV_Halo Command, streamlining control of a broad range of uncrewed systems for original equipment manufacturers.
• This partnership broadens AV_Halo Command’s compatibility, allowing faster deployment of interoperable, mission-ready uncrewed platforms for defense operators and OEMs.
• We'll examine how the collaboration's focus on modular, open-standards control integration shapes AeroVironment's investment narrative going forward.

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AeroVironment Investment Narrative Recap

To be a shareholder in AeroVironment today, you need conviction in long-term defense modernization and the company's ability to deliver modular, interoperable technologies at scale, even as margin pressure and reliance on U.S. government contracts introduce meaningful volatility. The recent OpenJAUS partnership further advances AV_Halo Command’s open-standards integration, but does not materially alter near-term catalysts or mitigate the central risk of revenue sensitivity to shifting U.S. defense budgets and policy.

Among the recent developments, AeroVironment's $95.9 million U.S. Army contract award for the Next-Generation C-UAS Missile underscores the company's momentum in securing significant new business, which ties directly to top-line growth catalysts. This contract, along with the company's expanding command and control ecosystem, highlights ongoing alignment with defense priorities, but doesn't eliminate the exposure to U.S. funding cycles.

Yet, in contrast, investors should be aware of revenue volatility risk tied to unpredictability in U.S. defense appropriations and contract timing as...

Read the full narrative on AeroVironment (it's free!)

AeroVironment's outlook anticipates $2.6 billion in revenue and $264.5 million in earnings by 2028. This scenario is based on a projected 47.0% annual revenue growth and a $220.9 million increase in earnings from the current $43.6 million.

Uncover how AeroVironment's forecasts yield a $409.00 fair value, a 23% upside to its current price.

Exploring Other Perspectives

Eight individual fair value estimates from the Simply Wall St Community range from US$184 to US$409 per share. While opinions on valuation differ widely, the company's high dependence on U.S. government contracts may increase earnings fluctuations if policy shifts occur, offering several alternative viewpoints for you to consider.

Explore 8 other fair value estimates on AeroVironment - why the stock might be worth as much as 23% more than the current price!

Build Your Own AeroVironment Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your AeroVironment research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free AeroVironment research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AeroVironment's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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