Ondas Inc. ONDS continues to see strong global demand for its Counter-UAS offerings as customers seek systems capable of addressing increasingly sophisticated drone threats. The company’s approach combines several technologies across the counter-drone chain, including passive detection, cyber takeover, electronic warfare, interception and autonomous kinetic defeat. These capabilities are being integrated through software-defined command and control, allowing customers to operate coordinated systems rather than separate products.
Demand has been particularly strong for Sentrycs’ Cyber-over-RF Counter-UAS systems. Sentrycs generated approximately 298% year-over-year pro forma revenue growth in the second quarter of 2026, supported by Ondas’ expanded global sales platform, customer access and operating resources. Management expects the Cyber-over-RF platform to remain an important growth driver as customers increasingly adopt layered, multisite counter-drone infrastructure.
Ondas is also broadening its Counter-UAS portfolio through DZYNE. The company expects IonStrike to begin receiving commercial volume orders and initial deliveries during the second half of 2026. Management cited urgent demand for cost-effective kinetic solutions designed to defend against sophisticated Shahed-class drones and coordinated swarms. In addition, Ondas is combining DZYNE’s Sawtooth counter-UAS technology with Sentrycs’ Cyber-over-RF capabilities. The integrated solution is intended to provide a broader detect, identify and defeat capability by bringing sensing, electronic effects and command-and-control functions together on one platform.
Management stated that demand for counter-drone and Precision Strike technologies remains significant and is expected to continue over the foreseeable future. The company believes substantially larger inventories of these technologies will be required on a sustainable basis and is preparing capacity not only for the second half of 2026 but also for 2027 and beyond. Management also described 30-40% portfolio growth as sustainable entering 2027, while noting that some systems and markets could grow faster than others as adoption curves develop.
Taking a Look at ONDS’ Competitors
Draganfly DPRO is benefiting from growing demand in the Counter-UAS market, supported by its 27 years of drone-building experience and deep understanding of UAS vulnerabilities. The company is expanding its counter-drone capabilities through a pragmatic strategy that combines proprietary technology with partnerships and integrations. A key catalyst is its DEVCOM contract to develop an ultralight, highly mobile counter-drone system for the U.S. Department of War. The platform features proprietary tracking and system-integration capabilities and supports multiple effectors, including kinetic and RF options. Management sees this as a significant opportunity, with potential to generate hundreds of millions of dollars over the coming years.
Unusual Machines UMAC is benefiting from accelerating demand in the Counter-UAS market, which management views as an emerging and potentially significant growth opportunity. Counter-drone programs use many of the same components supplied for FPV drones, allowing the company to serve multiple defense applications with its existing product portfolio. Management noted that Unusual Machines is already working with more than one Counter-UAS customer, with Powerus being the most advanced relationship to date. As large Counter-UAS contracts move through the domestic supply chain, the company expects additional component demand in late 2026 and into 2027, supporting sustained long-term growth.
ONDS’ Price Performance, Valuation and Estimates
Shares of ONDS have jumped 10.5% in the past year compared with the Zacks Wireless-National industry’s rise of 97.7%.
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In terms of the forward 12-month price/sales ratio, ONDS is trading at 4.65, lower than the industry’s multiple of 8.04.
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For ONDS, earnings estimates for the current year have been revised significantly downward in the past 30 days.
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ONDS currently has a Zacks Rank #4 (Sell).
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This article originally published on Zacks Investment Research (zacks.com).