Key insights
- AeroVironment successfully demonstrated its LOCUST laser weapon system on an aircraft carrier, showcasing its counter-drone capabilities. While positive for AVAV, the broader market impact is limited. The company's revenue growth is strong, but the stock is considered overvalued. This news signals potential future defense contracts and technological advancements, but its immediate influence on overall US equities is minimal.

ARLINGTON, Va. - AeroVironment Inc. (NASDAQ:AVAV) conducted a demonstration of its palletized LOCUST Laser Weapon System aboard the USS George H.W. Bush aircraft carrier in October 2025, the company said in a press release statement Monday.
The live-fire event was conducted in collaboration with the U.S. Navy and the U.S. Army Rapid Capabilities and Critical Technologies Office. During the demonstration, the Palletized High Energy Laser system tracked, engaged, and neutralized multiple target drones.
The system previously operated on fixed-site and land-based mobile platforms including the Joint Light Tactical Vehicle and Infantry Squad Vehicle. The demonstration marked its first deployment on an aircraft carrier.
"Rolling LOCUST onto a ship and quickly initiating operations facilitates the expanded use of high-energy lasers across the Fleet without the need for costly, time-consuming ship modifications," said John Garrity, Vice President of Directed Energy Systems at AeroVironment.
The system features roll-on, roll-off capabilities and can recharge its battery bank or operate on ship power. The platform uses open interfaces and what the company describes as a common laser weapon system architecture.
LOCUST is part of AeroVironment’s counter-unmanned aerial systems solutions, which also includes the radio frequency-based Titan C-UAS products and the Freedom Eagle kinetic missile. These systems are enabled by the company’s AV_Halo open architecture software.
AeroVironment develops autonomous systems, loitering munitions, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities for defense applications.The company, with a market capitalization of $9.94 billion, has seen revenue surge 117% over the last twelve months despite recent stock volatility. According to InvestingPro analysis, which currently rates the stock as overvalued compared to its Fair Value, analysts anticipate sales growth in the current year and predict a return to profitability. For deeper insights into AVAV’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities.
In other recent news, AeroVironment, Inc. secured a significant $14.6 million production contract from the U.S. Army for its VAPOR Compact Long Endurance unmanned aircraft system. This contract aligns with the Army’s Medium Range Reconnaissance initiative. Additionally, the company received a $25 million contract from the U.S. Air Force aimed at transitioning human health and performance technologies from research to field deployment. This three-year contract will support the Air Force Research Laboratory’s efforts in advancing sensor and diagnostic technologies.
AeroVironment also made strides in space communications, with its precision pointing hardware supporting NASA’s Artemis II mission. The hardware was integral to the Orion Artemis II Optical Communications System, enabling high-speed data transmission between lunar orbit and Earth. Furthermore, AeroVironment announced the appointment of Sean T. Woodward as its new Chief Financial Officer, effective May 1, 2026, succeeding Kevin McDonnell.
In terms of stock analysis, Cantor Fitzgerald maintained an Overweight rating on AeroVironment, with a price target set at $315. The rating follows a series of management meetings at the Space Symposium, described as particularly energetic this year. These recent developments highlight AeroVironment’s ongoing involvement in both defense and space sectors.
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