Barclays began analyst coverage of Archer Aviation in October 2026 with a favourable view. It pointed to the company's military work and operational strengths as key drivers of its Midnight electric aircraft programme. Archer is also in a patent dispute with Vertical Aerospace over alleged infringement tied to Midnight. The new counterclaim adds legal uncertainty, though it looks more like an overhang than a change to certification and deployment milestones. The bull case rests on Midnight winning FAA certification and starting operations. September's city-to-city Midnight flights in Northern California were a step in that direction. Simply Wall St's narrative projects $716.0 million in revenue and $62.9 million in earnings by 2029. It puts fair value at $10.61, 114% above the current price.

Archer Aviation is implementing a "golden manufacturing line" strategy to streamline its transition from early aircraft builds to high-volume production. The approach uses its Silicon Valley facility for final assembly during the initial phase whilst preparing its Georgia site for larger-scale manufacturing. The strategy enables Archer to identify production issues early and apply lessons from initial Midnight aircraft builds to its Georgia operation. The company is focusing internal development on key technologies including electric and hybrid propulsion systems, flight control software, and composites, whilst sourcing non-differentiating components from existing aerospace suppliers. This manufacturing approach aims to support a structured transition as Archer works towards certification and commercial deployment. The company is currently ramping up production capabilities across facilities in California and Georgia.

The Pentagon is shifting its eVTOL aircraft priorities towards hybrid propulsion and autonomous flight technologies, impacting contracts with Archer Aviation and Joby Aviation. Archer holds a contract with the US Air Force's Agility Prime programme valued at up to $142 million, whilst Joby's contract reached a potential $131 million. The Department of Defence reduced Joby's contract scope in 2025 as priorities changed. Joby is responding by acquiring defence contractor Resonant Sciences for approximately $500 million, which generated over $100 million in revenue over the previous 12 months. Archer has partnered with Anduril to develop Thunder, an autonomous hybrid-electric VTOL platform for military missions. In August, Archer announced plans to acquire Boeing's Insitu, Wisk Aero, and SkyGrid businesses, with Insitu alone generating over $200 million annually.