Joby Aviation shares moved higher in pre-market trading following renewed optimism around regulatory progress and analyst upgrades. While the electric vertical takeoff and landing (eVTOL) developer remains unprofitable, investors appear focused on FAA certification milestones, production expansion plans, and strategic partnerships as key catalysts.

Regulatory Progress and Strategic Partnerships

Joby continues advancing toward FAA certification, reporting an 18-point increase in its approval progress. Regulatory clearance remains the single most important milestone for commercial launch, and incremental updates are being closely monitored by the market.

Strategically, Joby benefits from high-profile partnerships, including collaboration with Uber for aerial ridesharing integration and backing from Toyota. These relationships strengthen both industrial manufacturing capabilities and go-to-market positioning. The company projects revenues between $105 million and $150 million in 2026, largely driven by its Blade-related operations and initial commercialization efforts.

Financial Pressure Remains Significant

Despite operational momentum, financial metrics reflect ongoing strain. Revenue over the trailing twelve months stands at approximately $22.64 million, while net income attributable to common shareholders shows a loss of $1.05 billion. EPS (TTM) is negative $1.35.

Profit margins remain at 0%, with return on assets at -35.23% and return on equity at -125.73%, underscoring the capital-intensive nature of aircraft development. Levered free cash flow is negative $308.74 million, though total cash of $978.12 million provides a runway cushion as certification and scaling efforts continue.

Analyst Sentiment Improves Despite Earnings Misses

Recent quarterly results show continued EPS misses, with Q4 FY25 reporting an actual loss of -$0.22 versus an estimate of -$0.20. Forward estimates suggest ongoing losses through 2026, with current-year EPS projected at -$0.85 before narrowing to -$0.67 in 2027.

However, analyst sentiment has improved. The average price target stands at $12.63, with a recent upgrade from HC Wainwright & Co. assigning a “Buy” rating and announcing an $18 price target. Market capitalization sits near $9.47 billion, reflecting significant expectations for future commercialization success.

Joby remains a high-beta equity (5Y beta of 2.59), and growth estimates show contraction in the near term before a projected 20.71% expansion next year. Investors are effectively pricing in long-term air mobility adoption while tolerating near-term volatility and earnings pressure.