Breakfast News: Big Expectations Hit AeroVironment

Breakfast News: Big Expectations Hit AeroVironment

March 11, 2026

Source: Image created by Jester AI.

1. AVAV Dips After Space Contract Pause

AeroVironment (AVAV 2.62%) declined 10% on the back of after-hours third-quarter results, despite the Rule Breakers recommendation posting a 143% revenue jump to $408 million year over year (YoY). The problem? That missed the $484 million Wall Street had been expecting. Earnings of $0.64 per share fell short of the anticipated $0.72 too, though well up on the previous year’s Q3 figure of $0.30. The revenue rise was driven partly by the company’s BlueHalo acquisition.

• Full-year revenue guidance of $1.85-1.95 billion: Following the pause of a key U.S. Space Force contract, management now sees revenue in fiscal 2026 falling short of its previous $1.95-2.0 billion expectations. The pause meant a $151 million goodwill impairment.
• “Despite the challenges we faced this quarter, our core business remains strong”: CEO Wahid Nawabi stressed strong demand for the company’s Autonomous Systems, though government contracts present a major unknown in a competitive market.

2. ORCL Jumps on AI Demand Boost

Oracle (ORCL 1.43%) climbed 10% before today’s opening bell, after big new AI contracts drove Q3 revenue up 44% YoY, in what looks like it could be a pivotal quarter. The company plans infrastructure expansion in both its multicloud database and AI businesses, with $30 billion of its $50 billion financing initiative already secured. Oracle’s 15% stake in TikTok US adds an extra income source.

• “Multicloud database revenue grew 531% year over year”: In an earnings call, co-CEO Clay Magouyrk added “AI infrastructure revenue grew 243%,” telling us demand exceeds supply – and Oracle’s execution “will rapidly turn that demand into profitable recurring revenue.”
• “Most investors are still trying to figure out whether AI is getting ahead of itself”: A few months ago, Fool analyst Emily Flippen noted the risks Oracle faces as it spends big money upfront to build its infrastructure, as its plans leave it “heavily dependent upon external financing and performance obligations for which partners can easily pull out.”

3. Notable Wednesday Earnings to Watch

• Stitch Fix (SFIX +5.32%) – recommended in Stock Advisor by Team Hidden Gems – will release Q2 figures after market close, following a 7% revenue rise in the opening quarter of fiscal 2026. The personal styling company saw higher spend by existing customers, but we need to watch active client numbers – which fell 5.2% YoY in Q1. Revenue guidance is at $1.32-1.35 billion.
• Serve Robotics (SERV +1.63%) beat Q4 and full-year expectations this morning, with revenue in the quarter soaring 400% YoY to $0.9 million. The company’s autonomous delivery fleet reached 2,000 robots, serving 20 cities in the U.S. The stock popped 10% in pre-market trading.
• BBB Foods (TBBB +0.54%) – beating the S&P 500 by 16% since being recommended in Rule Breakers in mid-2025 – saw strong Q3 revenue growth with rising same-store sales. Currently ranked sixth in RB for its ability to beat the market over five years, BBB posts a Q4 update after market close. Fool analyst Tim Beyers is on record as saying “BBB Foods is a Rule Breaking category killer – and it’s just getting started.”

4. Space Money: A Trader’s Take on Epic Fury, Valuations, and the SpaceX IPO

Fool contributing analyst Lou Whiteman recently joined The Downlink podcast to discuss Operation Epic Fury’s market impact, why Rocket Lab’s (RKLB 3.72%) valuation doesn’t match its current business, and whether SpaceX can justify a $1.7 trillion IPO based on Elon Musk’s vision.

Listen to the episode on Spotify

5. Your Take

BBB Foods and** Dollar General** (DG +0.48%) both primarily serve low-to-middle income households, with smaller-format convenience-oriented stores and a focus on everyday essentials.

Today we’re asking which you’d rather start a position in today, and why? And remember, you can’t choose both – or neither! – in this hypothetical game.

Debate with friends and family, or become a member to hear what your fellow Fools are saying!