02:48 PM EDT, 09/09/2025 (MT Newswires) -- AeroVironment's ( AVAV ) backlog growth and revenue visibility for fiscal 2026 will be the key items for investors, ahead of the the company's fiscal Q1 earnings, RBC said in a Monday research note. The company is expected to post its quarterly results on Tuesday after market close.

RBC said AeroVironment's ( AVAV ) 70% fiscal 2026 revenue visibility at the end of fiscal 2025 was "notable" considering the scope for additional scale in the 2026 revenue guidance with the company's recent acquisition of defense technology company Blue Halo.

For fiscal Q1, RBC said it is modeling adjusted earnings before interest, taxes, depreciation and amortization margin of 11%, which is lower than consensus of 12%. RBC further said that it does not expect the management to change the mid-teens fiscal 2026 margin guidance.

It will be important for AeroVironment ( AVAV ) to "re-outline capital allocation priorities", which could provide some upside to the sentiment on the company's stock, RBC added.

RBC maintained an outperform rating on the stock along with a $300 price target.

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