# AeroVironment Stock Drops 43% This Year

> AeroVironment shares fell 43% this year despite clean books at peers, raising questions about sector-wide devaluation.
- Title: AeroVironment Stock Drops 43% This Year · 24/7 Wall St.
- Summary: AeroVironment shares fell 43% this year despite clean books at peers, raising questions about sector-wide devaluation. AeroVironment stock dropped 43% this…
- Keywords: aerovironment, avav, drone stock, nasdaq, kratos defense, red cat, jedi etf, spy etf, Stock, Drops, Year, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/investing/2026/10/07/aerovironment-is-now-down-43-this-year-is-it-time-to-sell-this-dropping-drone-stock
- Author: David Moadel
- Published: 2026-10-07T19:12:52+00:00
- Read time: 1 min
- Topics: aerovironment, avav, drone stock, nasdaq, kratos defense, red cat, jedi etf, spy etf
## AeroVironment's Accounting Restatement
AeroVironment's accounting restatement looks like an easy explanation for a brutal year, until you notice that peers with clean books fell just as hard.
## Stock Performance Comparison
AeroVironment stock is at $138.45, down 43% so far this year. Kratos Defense stock is at $41.81, down 45% year to date. Red Cat shares are at $6.11, down 23% so far this year.
## Market Context
The Defiance Drone and Modern Warfare ETF is at $24.50, up 0.9% this year, while the SPDR S&P 500 ETF Trust is at $777.50, up 14% over the same stretch.
## Accounting Error Impact
In late June, AeroVironment disclosed an $89 million goodwill calculation error tied to its space unit, forcing a revision of previously reported financial results.
## Pending Lawsuit
A securities class action followed the accounting error, raising questions about AeroVironment’s financial controls during a stretch of acquisition-driven growth.
## What to Watch Next
Whether the class action settles, rebound in Kratos and Red Cat shares, or fresh contract awards will determine AeroVironment’s stock recovery.
## Key takeaway

AeroVironment stock dropped 43% this year as drone sector faces devaluation, with accounting error and pending lawsuit complicating recovery.