Five Drone and Defense Stocks Gaining Significant Momentum in 2026

Transformation in Defense Technology: The defense landscape is shifting from high-cost legacy platforms to autonomous systems, low-cost drones, and AI-integrated networks, becoming essential for modern defense strategies and industrial growth.

Emerging Companies and Market Trends: Companies specializing in drones and autonomous systems are gaining traction, with rising geopolitical risks and increased defense budgets reinforcing this trend, leading to a focus on technology that can be produced and deployed more efficiently.

AeroVironment's Market Position: AeroVironment has established itself as a key player in unmanned aircraft systems, reporting significant revenue growth and a strong backlog of contracts, indicating a robust demand for its products in the defense sector.

Kraton and Ondas Holdings' Innovations: Kraton is positioning itself as a leader in the defense sector with a focus on unmanned systems and cybersecurity, while Ondas Holdings is developing autonomous systems for mission-critical applications, both companies showing strong momentum and growth potential in their respective markets.