AeroVironment’s 2025 revenue growth was mostly due to acquiring BlueHalo, not its core business. Ondas, a smaller drone maker, is growing much faster with more government contracts. Ondas is expected to outperform the S&P 500 as it secures more contracts and boosts annual recurring revenue.

Ondas reported 582% YoY revenue growth in Q3 2025, with a 60% QoQ increase. The company’s forecast for 2026 is bullish, making it a compelling long-term investment. Ondas has a smaller market cap compared to AeroVironment, which could lead to more growth potential.

Ondas expects to generate at least $110 million in revenue for 2026, surpassing its 2025 projection of $36 million. The company has a history of outperforming expectations. Long-term growth projections make Ondas an appealing choice for growth investors as the demand for drones rises in 2027.

By securing big contracts, Ondas boosts annual recurring revenue and demand for its services. Recent deals in Europe and the U.S., including an $8.2 million order for an international airport, position Ondas as a top-tier defense stock. The company’s portfolio of autonomous systems is gaining traction globally.

For investors looking at Ondas stock, the company’s 2026 guidance indicates substantial growth potential. While AeroVironment is currently more successful, Ondas’ long-term projections make it an attractive option for growth investors. Consider Ondas for its promising outlook in the drone market.

Read more at Yahoo Finance: 1 Stock I’d Buy Before AeroVironment in 2026