The defense technology sector is experiencing unprecedented demand as governments worldwide accelerate investments in autonomous systems, counter-drone technologies, intelligence platforms and robotic warfare capabilities. Against this backdrop, Ondas Inc. ONDS has secured more than $30 million in new orders during May 2026 and has surpassed $110 million in total orders quarter to date. Strong order momentum signals growing market acceptance, and the company's transformation into a diversified defense technology platform is gaining traction.
It generated $50.1 million in revenue and reported a pro forma backlog of $457 million in the first quarter. For investors, these figures are noteworthy because order growth often serves as an indicator of future revenue expansion. A growing backlog provides visibility into future business activity, suggesting that customers are committing to Ondas' solutions well before deployment. The orders span air defense, counter-drone systems, loitering munitions, ISR platforms, UGVs, robotic defense and security technologies, reducing reliance on any single product while expanding exposure to multiple defense spending trends.
A key part of Ondas' growth plan is its integrated operating model. Instead of managing each technology segment separately, ONDS is using shared resources across the organization, including engineering expertise, manufacturing capabilities, customer relationships, deployment experience, operational support infrastructure and field service capabilities. By offering multiple complementary solutions, Ondas can potentially increase its share of customer spending and build long-term relationships.
Ondas also mentioned that it aims to pursue larger defense and security programs across the United States, Europe, the Middle East and allied international markets. Expanding its international presence could provide Ondas with multiple avenues for growth while reducing its reliance on any single government customer. While challenges related to execution, competition and scaling remain, the ongoing momentum suggests that Ondas is positioning itself as a strong participant in the next generation of defense and security technologies.
How ONDS Stack Up in Competitive Defense Tech Landscape
Draganfly DPRO and F4 Defense International recently secured an initial DEVCOM Army Research Laboratory contract to develop a modular, rapidly deployable counter-drone system that integrates tethered aerial platforms with drone detection, tracking, targeting and defeat capabilities for enhanced situational awareness and defense in contested environments. First-quarter revenue rose 49.4% year over year to $2.3 million, driven by a 44.8% increase in product sales to $2.2 million. Quarterly sales were aided by strong demand from military customers, including an FPV drone order from the U.S. Army, reflecting its growing relationship with an existing defense customer. DPRO expanded its defense portfolio through the acquisition of Skip Dynamix's drone technology assets.
Unusual Machines UMAC reported healthy first-quarter growth, with strong enterprise demand driving revenue gains, a 32.8% gross margin, expanded production capacity and a strengthened balance sheet following a $150 million equity raise. UMAC also advanced its integrated powertrain strategy through the $52 million Upgrade Energy deal and sees potential drone-delivery expansion by 2027. Per management, demand continues to exceed supply and is expected to remain strong through 2027, driven by rising defense drone procurement and emerging counter-drone programs. It is expanding production and securing raw materials to capitalize on growing demand, supported by increasing U.S. defense spending and a preference for domestic supply chains.
ONDS’ Price Performance, Valuation and Estimates
Shares of ONDS have gained a whopping 799.3% in the past year against the Zacks Wireless-National industry’s decline of 13%
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Valuation-wise, ONDS seems overvalued, as suggested by the Value Score of F. In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 12.61, considerably higher than the industry’s multiple of 1.72.
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For ONDS, earnings estimates for the current year have remained unchanged in the past 60 days.
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ONDS currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Ondas Holdings Inc. (ONDS): Free Stock Analysis Report
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Unusual Machines, Inc. (UMAC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).