US Stock Market Move | Drone concept stocks are gaining strength, with AeroVironment (AVAV.US) surging over 18%.

On Tuesday, drone concept stocks surged, with AeroVironment (AVAV.US) soaring over 18% after the company announced better-than-expected fourth-quarter revenue and profit for the fiscal year 2026; Draganfly (DPRO.US) rose over 11%, Unusual Machines (UMAC.US) rose over 6%, Red Cat Holdings (RCAT.US) rose over 5%, and Ondas (ONDS.US) rose over 2%. The financial report showed that AeroVironment's fourth-quarter revenue more than doubled year-on-year to $642 million, well above analysts' average expectation of $559 million; revenue from the autonomous systems business reached $492 million, significantly higher than analysts' average expectation of $402 million. Earnings per share were $1.84, also higher than analysts' average expectation of $1.46. The funded backlog reached $1.2 billion, up 65% year-on-year, but only slightly higher than the $1.1 billion disclosed in the previous quarter. Looking ahead, the drone manufacturer expects fiscal year 2027 revenue to be between $2.13 billion and $2.23 billion, compared to analysts' expectations of $2.17 billion; adjusted earnings per share for fiscal year 2027 are projected to be between $3.02 and $3.34, with analysts previously expecting $3.94 per share.