Archer Aviation jumps 12% on Boeing deal and Q2 revenue beat

Archer Aviation shares jumped 12% after agreeing to acquire three Boeing subsidiaries and posting Q2 revenue of $5 million, beating estimates.

"The period marks an important inflection point for Archer," CEO Adam Goldstein said, citing the planned Boeing acquisitions and new technology unveilings including Halo, ZEE and ACES.

The company reported a second-quarter loss of 25 cents per share, in line with the Zacks Consensus Estimate, while revenue surged from $1.6 million in the prior quarter. Total operating expenses reached $284.2 million, producing an adjusted EBITDA loss of $177.1 million, within the company's guidance range of $170 million to $200 million. Archer ended the quarter with $1.56 billion in cash, cash equivalents and short-term investments.

Metric	Actual	Consensus	Beat/Miss
Revenue	$5M	$1.95M	+156%
EPS	-$0.25	-$0.25	In line
Adj. EBITDA	-$177.1M	-$170 to -$200M	Within range

The acquisition of Wisk Aero, Insitu and SkyGrid is expected to add more than $200 million in annual revenue through Insitu, which operates a profitable defense business across 35 countries. Boeing will take a strategic stake in Archer and collaborate on technology. The deal is expected to close by year-end 2026.

Archer's Midnight aircraft completed piloted city-to-city flights during the quarter, and the company is preparing for operations under the White House's eVTOL Integration Pilot Program. The company posted a $263.2 million net loss for the quarter and expects another adjusted EBITDA loss of $170 million to $200 million in the third quarter.

Wisk has designed and flown six generations of eVTOL aircraft over 16 years, while Insitu has produced more than 3,500 unmanned aircraft used by armed forces across 35 nations. SkyGrid has developed ground-based air traffic management software for autonomous flight integration. The combined capabilities will pair with Archer's ZEE artificial intelligence foundation model to create an end-to-end physical AI platform for aerospace and defense.

ACHR, which carries a Zacks Rank #2 (Buy), is part of the Aerospace - Defense industry. Shares have declined 16.8 percent year to date against 6.8 percent growth for the industry. Boeing and Embraer S.A., two peers from the same industry, have gained 7.2 percent and 14.6 percent in the same period, respectively.

State Street Corporation disclosed a 6.4 percent passive stake in Archer, holding approximately 48.7 million shares as of June 30. Institutional ownership of ACHR has climbed to 59.34 percent, with the California State Teachers Retirement System boosting its position by 21 percent in the first quarter.

Wall Street maintains a consensus Strong Buy rating on ACHR with an average price target of $11.75, implying roughly 110 percent upside from the recent $5.59 share price. Canaccord Genuity trimmed its target to $12 from $13 in May while keeping its Buy recommendation, and Barclays upgraded the shares to Hold in late July.

The stock surge reflects investor confidence in Archer's diversified strategy across air taxis, unmanned aerial systems and artificial intelligence. The next event to watch is the closing of the Boeing acquisition by year-end 2026 and progress toward FAA certification for commercial eVTOL operations.

This article is for informational purposes only and does not constitute investment advice.