Archer Aviation Inc. (ACHR) is moving forward on its path toward commercial air taxi operations, but investor patience remains uneven until that milestone is closer. The company’s latest earnings call showed clear progress in production and partnerships, yet Wall Street was looking for more precise timing on its roadmap. Without a firm date for U.S. certification, shares fell after the results and continued their decline in pre-market trading, as investors reacted to a wider-than-expected loss despite the operational wins.
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Quarter Highlights: Partnerships, Progress, and Position
In Q2, Archer completed a piloted test flight of its Midnight aircraft and reported six of the models in production, with three in final assembly across facilities in California and Georgia. The company was also chosen as the Official Air Taxi Provider for the Los Angeles 2028 Olympic Games, positioning it as a visible player in the U.S. market when the time comes. Internationally, Archer launched its UAE program with Abu Dhabi Aviation and the Abu Dhabi Investment Office, delivering its first Midnight to Abu Dhabi and starting flight tests there. Another aspect of Archer’s operations is defense. The company advanced its program with two acquisitions: patents and talent from Overair, and composite manufacturing assets from Mission Critical Composites.
Financially, Archer posted a net loss of $206 million for the quarter, missing analyst EPS expectations by $0.11, with a loss of $0.36. However, it ended the period with $1.72 billion in cash and equivalents, up 67% from the first quarter.
Analyst Expectations vs. Company Reality
The miss on EPS was, of course, due to higher spending than analysts had modeled, driven by aircraft production, certification work, international launch activity, and strategic acquisitions. While analysts may have expected slower spending, Archer is front-loading investments to speed up its timeline for scaled operations. The company remains pre-revenue, though initial UAE payments are expected later in the year. Management also noted that defense contracts could be a larger revenue stream than commercial air taxi services for at least the next decade. This approach reflects a focus on building and positioning now rather than trimming costs for short-term results.
What We Have Learned
Archer is still in what can be described as the “Olympic training camp” phase of its business. The main priority is to build aircraft, secure FAA certification, and lock in high-profile partnerships like the UAE program, LA28 Olympic Games, and defense contracts. With $1.72 billion in cash, the company can sustain its investment pace without seeking more funding in the near term, a rare advantage in the eVTOL sector. Much of the loss this quarter was tied to planned spending aimed at generating revenue in 2026 through 2028, showing that Archer is positioning itself for a larger market presence once commercialization begins.
Is Archer Aviation Stock a Good Buy?
Despite the stock’s speculative nature, Wall Street analysts remain optimistic about the company. Based on six recent ratings, Archer Aviation boasts a “Moderate Buy” consensus with an average 12-month price target of $11.92. This implies a 24.95% upside from the current price.
