Ondas Secures Major Military Drone Contracts Amid Rising Defense Spending
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 23 2026
0mins
Source: NASDAQ.COM
- Significant Order Growth: Ondas reported $50 million in revenue for Q1 2026, marking a tenfold increase year-over-year and a 66% rise from the previous quarter, indicating strong demand and potential for business expansion in the military drone sector.
- Improved Gross Margin: The company's gross profit margin increased from 35% last year to 49%, reflecting successful cost control and enhanced product value, which further strengthens its financial health.
- Substantial Cash Flow Improvement: Ondas' cash reserves surged from $66 million at the end of 2025 to $1.5 billion, ensuring ample funding for future projects and supporting its ongoing growth strategy.
- Robust Order Backlog: With a backlog exceeding $450 million, Ondas is well-positioned for future revenue growth, demonstrating strong market recognition of its technology and capabilities.
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Analyst Views on ONDS
Wall Street analysts forecast ONDS stock price to rise
8 Analyst Rating
8 Buy
0 Hold
0 Sell
Strong Buy
Current: 13.220
Low
13.00
Averages
17.50
High
25.00
Current: 13.220
Low
13.00
Averages
17.50
High
25.00
About ONDS
Ondas Inc. is a provider of autonomous systems, robotics, and mission-critical connectivity solutions for defense, security, and industrial markets. Through its business units, Ondas Autonomous Systems (OAS), Ondas Capital and Ondas Networks, it develops and deploys integrated technologies that deliver advanced sensing, mobility, and communications capabilities. OAS delivers a portfolio of artificial-intelligence (AI)-powered defense and security platforms to protect sensitive sites, populations, and critical infrastructure. OAS also provides an integrated suite of autonomous aerial, ground, and counter-UAS solutions through its operating companies. It also provides Airborne Missile Protection Systems (AMPS) and airborne intelligence, surveillance and reconnaissance (ISR) solutions for the military, government and others. It also specializes in the procurement, integration, and lifecycle support of heavy engineering equipment for military and national infrastructure programs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ondas Stock Surges 1,576% Amid Defense Sector Growth
- Stock Surge: Ondas stock has surged 1,576% over the past 12 months, establishing itself as a standout in the U.S. defense sector, with an investment of $100,000 in May 2025 potentially growing to approximately $1.676 million, highlighting the company's robust market performance.
- Diversification Expansion: Ondas has successfully expanded into military software and automation through acquisitions of companies like Omnisys and Mistral, enhancing its competitiveness in the autonomous technology market, reflecting a shift in U.S. defense priorities.
- Strong Financial Performance: In its first-quarter report, Ondas achieved $50.1 million in revenue, a 1,065% increase year-over-year, with gross profit reaching $24.7 million and a 49% gross margin, while raising its full-year 2026 revenue target to at least $390 million, indicating strong market demand.
- Policy Support Catalyst: President Trump's consideration of financial support for U.S. drone manufacturers has spurred investor interest in Ondas, with the Pentagon planning to deploy about 300,000 low-cost attack drones by the end of 2027, further enhancing market expectations for the company.
See More
Ondas Secures Over $30 Million in New Orders, Strengthening Growth Outlook
- Significant Order Growth: Ondas secured over $30 million in new orders during May, bringing total orders to over $110 million for the second quarter to date, indicating strong customer demand for its defense, security, and autonomous technology platforms, thereby enhancing the company's market position.
- Robust Backlog: The company reported a pro forma backlog of $457 million at the end of the first quarter, reflecting ongoing growth potential in its defense and security platforms and indicating sustainability in future revenues.
- Strategic Expansion Plans: Ondas aims to advance its growth strategy by increasing production capacity and integrating acquired technologies, with the goal of deepening customer relationships and pursuing larger defense and security contracts to meet evolving market demands.
- Extremely Bullish Retail Sentiment: Retail sentiment around Ondas stock remains 'extremely bullish', with message volumes improving from 'high' to 'extremely high' in the past 24 hours, demonstrating strong investor confidence in the company's future, as shares have gained over 6% year-to-date.
See More
Trump Administration Pushes Funding for Drone Manufacturing
- Funding Initiative: The Trump administration is reportedly negotiating with the Pentagon's Office of Strategic Capital to increase funding for U.S. drone manufacturers by approximately 1,247% in fiscal 2027, which is expected to significantly enhance the competitiveness and innovation capacity of the American drone industry.
- Market Growth Potential: According to MarketsandMarkets, the global counter-unmanned aircraft system market is projected to grow from approximately $6.64 billion in 2025 to around $20.31 billion by 2030, with North America expected to lead this growth, indicating strong demand for domestic manufacturers.
- Duke Robotics Uplisting: Duke Robotics successfully completed an underwritten public offering of approximately $9.2 million on May 18, 2026, and uplisted to Nasdaq, holding the intellectual property for the IDF-deployed Bird of Prey weapon system, which is anticipated to drive future revenue growth.
- Acquisitions and Mergers: Ondas Holdings completed its acquisition of Omnisys for approximately $196.6 million, enhancing its capabilities in multi-domain defense planning, while its merger with Mistral has brought its backlog to $457 million, demonstrating strong market consolidation capabilities.
See More
Ondas Holdings Secures Over $30M in New Orders
- Significant Order Growth: Ondas Holdings secured over $30 million in new orders during May, bringing its Q2 order intake to over $110 million, indicating strong demand in defense, security, and autonomous systems, which further solidifies its market position.
- Strong Financial Performance: The company reported Q1 2026 revenue of $50.1 million, reflecting sustained business growth and a notable increase compared to the previous year, enhancing investor confidence in its future performance.
- Robust Backlog: As of the end of Q1, Ondas Holdings had a pro forma backlog of $457 million, indicating strong revenue potential in the coming months, which supports its ongoing business expansion and investment plans.
- Optimistic Industry Outlook: With drone stocks rallying due to potential funding support, Ondas Holdings' leadership in the drone sector is further reinforced, and it is expected to benefit from the overall industry recovery, driving future growth.
See More
Ondas Inc.: A Pioneer in the Drone Revolution
- Revenue Growth Outlook: Ondas Inc. anticipates its annual revenue will surge from approximately $50 million in 2025 to $400 million in 2026, reflecting robust demand for drones and indicating a rapid enhancement of its market position in the defense sector.
- Strategic Investment Opportunity: By acquiring shares of Unusual Machines at $17, Ondas benefits from the Trump administration's funding for U.S. drone companies, which not only strengthens its capital base but also potentially enhances its competitive edge in the market.
- Technical Breakthrough and Market Response: Ondas shares broke through multi-month resistance on Thursday, with trading volume reaching twice the daily average within two hours of the session, indicating strong market demand for its growth potential and likely attracting more investor interest.
- Industry Collaboration and Policy Support: Ondas's partnership with industry leader Palantir and participation in the Trump administration's “Golden Dome” project further solidify its leadership in drone technology, suggesting future opportunities for government contracts and market expansion.
See More
Trump Administration Boosts Drone Manufacturing with Funding Exploration
- Drone Stock Surge: Following reports that the Trump administration is exploring funding deals to enhance domestic drone manufacturing and reduce costs, UMAC shares soared 57%, RCAT rose 33%, and ONDS jumped 23%, indicating strong market optimism for the drone sector.
- Potential Funding Support: Discussions between the Pentagon and the Office of Strategic Capital may involve loans, debt financing, and equity investments aimed at deploying 300,000 low-cost attack drones by 2027, highlighting the growing significance of drones in modern warfare.
- UMAC's Market Performance: Despite UMAC's stock trading above the analyst target price of $25.33, indicating a 14% downside risk, it maintains a 'Strong Buy' rating, reflecting investor confidence in its future growth potential.
- Investor Sentiment High: On Stocktwits, retail sentiment for ONDS, RCAT, UMAC, and KTOS is extremely bullish, with 55% of participants selecting ONDS as their top long-term pick for the next five years, showcasing strong interest in the drone industry.
See More
Ondas Stock Surges 1,576% Amid Defense Sector Growth
- Stock Surge: Ondas stock has surged 1,576% over the past 12 months, establishing itself as a standout in the U.S. defense sector, with an investment of $100,000 in May 2025 potentially growing to approximately $1.676 million, highlighting the company's robust market performance.
- Diversification Expansion: Ondas has successfully expanded into military software and automation through acquisitions of companies like Omnisys and Mistral, enhancing its competitiveness in the autonomous technology market, reflecting a shift in U.S. defense priorities.
- Strong Financial Performance: In its first-quarter report, Ondas achieved $50.1 million in revenue, a 1,065% increase year-over-year, with gross profit reaching $24.7 million and a 49% gross margin, while raising its full-year 2026 revenue target to at least $390 million, indicating strong market demand.
- Policy Support Catalyst: President Trump's consideration of financial support for U.S. drone manufacturers has spurred investor interest in Ondas, with the Pentagon planning to deploy about 300,000 low-cost attack drones by the end of 2027, further enhancing market expectations for the company.
See More
Ondas Secures Over $30 Million in New Orders, Strengthening Growth Outlook
- Significant Order Growth: Ondas secured over $30 million in new orders during May, bringing total orders to over $110 million for the second quarter to date, indicating strong customer demand for its defense, security, and autonomous technology platforms, thereby enhancing the company's market position.
- Robust Backlog: The company reported a pro forma backlog of $457 million at the end of the first quarter, reflecting ongoing growth potential in its defense and security platforms and indicating sustainability in future revenues.
- Strategic Expansion Plans: Ondas aims to advance its growth strategy by increasing production capacity and integrating acquired technologies, with the goal of deepening customer relationships and pursuing larger defense and security contracts to meet evolving market demands.
- Extremely Bullish Retail Sentiment: Retail sentiment around Ondas stock remains 'extremely bullish', with message volumes improving from 'high' to 'extremely high' in the past 24 hours, demonstrating strong investor confidence in the company's future, as shares have gained over 6% year-to-date.
See More
Trump Administration Pushes Funding for Drone Manufacturing
- Funding Initiative: The Trump administration is reportedly negotiating with the Pentagon's Office of Strategic Capital to increase funding for U.S. drone manufacturers by approximately 1,247% in fiscal 2027, which is expected to significantly enhance the competitiveness and innovation capacity of the American drone industry.
- Market Growth Potential: According to MarketsandMarkets, the global counter-unmanned aircraft system market is projected to grow from approximately $6.64 billion in 2025 to around $20.31 billion by 2030, with North America expected to lead this growth, indicating strong demand for domestic manufacturers.
- Duke Robotics Uplisting: Duke Robotics successfully completed an underwritten public offering of approximately $9.2 million on May 18, 2026, and uplisted to Nasdaq, holding the intellectual property for the IDF-deployed Bird of Prey weapon system, which is anticipated to drive future revenue growth.
- Acquisitions and Mergers: Ondas Holdings completed its acquisition of Omnisys for approximately $196.6 million, enhancing its capabilities in multi-domain defense planning, while its merger with Mistral has brought its backlog to $457 million, demonstrating strong market consolidation capabilities.
See More
Ondas Holdings Secures Over $30M in New Orders
- Significant Order Growth: Ondas Holdings secured over $30 million in new orders during May, bringing its Q2 order intake to over $110 million, indicating strong demand in defense, security, and autonomous systems, which further solidifies its market position.
- Strong Financial Performance: The company reported Q1 2026 revenue of $50.1 million, reflecting sustained business growth and a notable increase compared to the previous year, enhancing investor confidence in its future performance.
- Robust Backlog: As of the end of Q1, Ondas Holdings had a pro forma backlog of $457 million, indicating strong revenue potential in the coming months, which supports its ongoing business expansion and investment plans.
- Optimistic Industry Outlook: With drone stocks rallying due to potential funding support, Ondas Holdings' leadership in the drone sector is further reinforced, and it is expected to benefit from the overall industry recovery, driving future growth.
See More
Ondas Inc.: A Pioneer in the Drone Revolution
- Revenue Growth Outlook: Ondas Inc. anticipates its annual revenue will surge from approximately $50 million in 2025 to $400 million in 2026, reflecting robust demand for drones and indicating a rapid enhancement of its market position in the defense sector.
- Strategic Investment Opportunity: By acquiring shares of Unusual Machines at $17, Ondas benefits from the Trump administration's funding for U.S. drone companies, which not only strengthens its capital base but also potentially enhances its competitive edge in the market.
- Technical Breakthrough and Market Response: Ondas shares broke through multi-month resistance on Thursday, with trading volume reaching twice the daily average within two hours of the session, indicating strong market demand for its growth potential and likely attracting more investor interest.
- Industry Collaboration and Policy Support: Ondas's partnership with industry leader Palantir and participation in the Trump administration's “Golden Dome” project further solidify its leadership in drone technology, suggesting future opportunities for government contracts and market expansion.
See More
Trump Administration Boosts Drone Manufacturing with Funding Exploration
- Drone Stock Surge: Following reports that the Trump administration is exploring funding deals to enhance domestic drone manufacturing and reduce costs, UMAC shares soared 57%, RCAT rose 33%, and ONDS jumped 23%, indicating strong market optimism for the drone sector.
- Potential Funding Support: Discussions between the Pentagon and the Office of Strategic Capital may involve loans, debt financing, and equity investments aimed at deploying 300,000 low-cost attack drones by 2027, highlighting the growing significance of drones in modern warfare.
- UMAC's Market Performance: Despite UMAC's stock trading above the analyst target price of $25.33, indicating a 14% downside risk, it maintains a 'Strong Buy' rating, reflecting investor confidence in its future growth potential.
- Investor Sentiment High: On Stocktwits, retail sentiment for ONDS, RCAT, UMAC, and KTOS is extremely bullish, with 55% of participants selecting ONDS as their top long-term pick for the next five years, showcasing strong interest in the drone industry.
See More
