Ondas Inc ONDS is witnessing a rapidly expanding opportunity pipeline. On the first-quarter 2026earnings call the company disclosed an active pipeline of approximately $4.3 billion in opportunities across more than 45 global program submissions, highlighting strong demand for its autonomous defense, robotic, ISR (intelligence, surveillance, and reconnaissance), and security capabilities.
Regionally, Europe and the United States account for the largest share, with roughly $2 billion and more than $1.8 billion in opportunities, respectively. It is advancing in other markets such as Israel. Management noted that the current pipeline represents more than $500 million in potential annualized revenue opportunity.
The pipeline spans multiple operational domains, including aerial security, ISR, and unmanned ground vehicles (UGVs). The company is also targeting large-scale defense initiatives such as the LASSO program, which alone represents a potential opportunity nearing $1 billion. These efforts position Ondas to compete for complex, multi-domain programs that require integrated technology platforms.
The company has already secured positions in strategic programs with a potential value exceeding $1.6 billion. Ondas has also accumulated a backlog exceeding $450 million following the acquisitions of World View and Mistral. Management increased 2026 revenue guidance to at least $390 million.
While execution remains key, the scale and diversification of Ondas’ $4.3 billion pipeline suggest it may have secured multi-year growth in the fast-growing autonomous defense market. However, the autonomous space is witnessing increasing competition as both established players and new players double down on capturing the market share.
Mapping the Competitive Terrain
Draganfly DPRO is a Canada-based drone solutions and systems developer. The company does not explicitly mention backlog and pipeline metrics. Increasing presence in the military vertical is a major tailwind. At the beginning of the first quarter, DPRO secured orders for FPV drones from the U.S. Army and for Commander 3 XLs from international military customers. It was recently selected by the Department of War, along with F4 Defense International, to develop a multi-layered, modular and rapidly deployable counter-UAS (C-UAS) system.
Draganfly is also building strong strategic partnerships. The alliance with Prime Global Ordnance positions the company as a supplier in the growing military drone and munition ecosystem supporting Ukraine. Meanwhile, the partnership with Babcock strengthens access to Indo-Pacific defense markets. Management is of the idea that future military operations will require fleets of interoperable drones rather than isolated single-use platforms. Draganfly cites that its core advantage lies in the interoperability and modularity.
Red Cat Holdings RCAT also does not break out a backlog metric but has emphasized a “large opportunity pipeline for 2026” around its Black Widow platform on the lastearnings call This pipeline spans multiple customers, including the U.S. Army (with a pending LRIP contract), Marines, Air Force, Philippines, Ukraine, Japan and Taiwan. The opportunity pipeline for the Teal Black Widows is nearly $700 million, added Red Cat. The company has the capacity and inventory to support up to $220 million worth of Black Widows, reinforcing readiness to convert pipeline into revenues.
Red Cat delivered $15.5 million in revenues in the first quarter, marking an 849% year-over-year increase. The company expects $150 million to $180 million in annual revenues in the near to medium term. The gross margins expected to approach 30% over time.
ONDS’ Price Performance, Valuation and Estimates
Shares of ONDS have gained a whopping 25.5% in the past six months against the Zacks Wireless-National industry’s decline of 1.8%
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In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 11.02, considerably higher than the industry’s multiple of 1.66.
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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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