Why Is Archer Aviation (ACHR) Down 16.8% Since Last Earnings Report?

It has been about a month since the last earnings report for Archer Aviation Inc. (ACHR). Shares have lost about 16.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Archer Aviation due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Archer Aviation Inc. before we dive into how investors and analysts have reacted as of late.

Archer Reports First-Quarter Loss, Revenues Lag Estimates 

Archer Aviation Inc. posted a first-quarter 2026 loss of 21 cents per share compared with the Zacks Consensus Estimate of a loss of 25 cents.

ACHR’s Revenues

Revenues were $1.6 million versus the consensus estimate of $2.0 million, representing an 11.9% miss, as the company remained in the pre-commercial stage.

Even so, Archer highlighted record FAA certification progress, becoming the first eVTOL developer to close Phase 3 of the FAA’s four-phase type certification process while expanding its piloted flight-test program to support commercial readiness.

Highlights of the Release

During the quarter, ACHR emphasized progress on the regulatory pathway needed to bring its Midnight electric vertical takeoff and landing aircraft to market. Management said Phase 4 work has been advancing in parallel, a key step toward demonstrating compliance and progressing toward certification.

The company also expanded its piloted flight-test activities, calling the period its most expensive quarter for the flight-test program. Those efforts are intended to mature aircraft performance, flight controls and operating procedures ahead of initial commercial deployments.

Archer is also positioning its U.S. readiness around major-event demand, pointing to preparations for the LA28 Olympic Games. Management highlighted operational development tied to Hawthorne Airport in Los Angeles as it works through infrastructure and flight-operations requirements for future urban air mobility services.

ACHR Spending Rises as R&D and G&A Climb

Costs rose sharply as Archer Aviation leaned into certification, engineering and commercialization efforts. Research and development expenses increased to $171.7 million from $103.7 million a year earlier, reflecting higher program activity and personnel-related costs tied to aircraft development and testing.

General and administrative expenses more than doubled to $83.2 million from $40.3 million, driven by higher headcount and stock-based compensation. Total operating expenses climbed to $256.2 million, and the operating loss widened accordingly as the company continued building capabilities ahead of revenue scale.

Archer Keeps Liquidity Strong Despite Cash Burn

Liquidity remained a central investor focus, given Archer’s heavy development spend. The company finished the quarter with $951.1 million in cash and cash equivalents and $824.8 million in short-term investments, providing a sizable cushion to fund ongoing certification and manufacturing ramp efforts.

Cash used in operating activities was $149.1 million in the quarter, up from $94.6 million a year ago, reflecting the higher cost base. Archer also invested $32.6 million in property and equipment, underscoring continued build-out of facilities and tooling needed to support production and test operations.

ACHR Guides for Another Heavy EBITDA Loss in Q2

ACHR expects an adjusted EBITDA loss of $170 million to $200 million in the second quarter of 2026. Management tied the outlook to continued investment in flight testing, certification workstreams and broader commercial readiness initiatives.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Archer Aviation has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Archer Aviation has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Archer Aviation belongs to the Zacks Aerospace - Defense industry. Another stock from the same industry, Textron (TXT), has gained 2.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Textron reported revenues of $3.7 billion in the last reported quarter, representing a year-over-year change of +11.8%. EPS of $1.45 for the same period compares with $1.28 a year ago.

Textron is expected to post earnings of $1.52 per share for the current quarter, representing a year-over-year change of -1.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Textron. Also, the stock has a VGM Score of B.

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This article originally published on Zacks Investment Research (zacks.com).

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