Ondas Rallies 13% Ahead of Earnings, AeroVironment Jumps 10% on $315 Million Award; Red Cat Surges 10%

Drone and defense technology stocks are rallying hard, led by a new contract award and an earnings report just days away. Ondas Holdings (NASDAQ:ONDS) stock is at $6.02, up 13% in early action. A Q3 2026 report from the company is scheduled for November 12 before the market opens, though Ondas hasn’t confirmed that date.

At the same time, AeroVironment (NASDAQ:AVAV | AVAV Price Prediction) stock is at $123.89, up 10%, trailing Ondas, after the company announced a multiyear contract award. Major indexes are higher as investors return to AI and growth shares after last week’s post-midterm selloff. Even so, AeroVironment and its drone peers are running well ahead. They lead the broader market by a wide margin.

AeroVironment Lands a $940 Million Autonomous Systems Contract

AeroVironment disclosed on November 9 a multiyear indefinite-delivery, indefinite-quantity (IDIQ) contract with a U.S. customer carrying a ceiling value of $940 million. The initial award is approximately $315 million, covering product deliveries and support through its Autonomous Systems (AxS) segment. An IDIQ sets a maximum value while the customer places orders over time, so the ceiling isn’t guaranteed revenue. Citing operational security, the company didn’t name the agency or program.

Trace Stevenson, president of AxS, framed the award as proof of production readiness: “We are not preparing to manufacture at scale. We are doing it.” This contract adds to a record funded backlog of $1.5 billion that AeroVironment reported for Q1 FY2027 on September 9.

Ondas Order Book Builds Ahead of Earnings

Ondas guided its third-quarter revenue to a range of $140 million to $155 million, against second-quarter revenue of $83.8 million. In its October order update, Ondas announced it secured more than $165 million in orders between mid-August and October 1. On November 5, Ondas agreed to buy Stemme, the German maker of the ULTRA airframe, in an all-cash deal expected to close in Q1 2027. That deal supports Ondas’ goal of producing 10 ULTRA aircraft per month by 2028.

Red Cat, Unusual Machines and Kratos Climb With the Group

Red Cat Holdings (NASDAQ:RCAT) stock is at $4.44, up 10%, joining Ondas in heading toward an upcoming earnings report. Revenue at Red Cat rose 527% year over year to $20.19 million in Q2 FY2026, though that figure missed estimates. The company reaffirmed its fiscal 2026 revenue target of $150 million to $180 million and ended the quarter with $325.55 million in cash.

Unusual Machines (NYSEAMERICAN:UMAC) stock is at $13.41, up 13%. Meanwhile, Kratos Defense & Security Solutions (NASDAQ:KTOS) stock is at $37.81, up 8%. Both companies reported Q3 2026 results on November 5, with Kratos posting a record backlog of $2.65 billion.

How Ondas and AeroVironment Build Their Businesses Differently

Ondas has built its portfolio largely through acquisitions. It combines counter-unmanned aircraft systems (counter-UAS) such as Sentrycs and Iron Drone with loitering munitions, ground robots and stratospheric surveillance in one system-of-systems platform. AeroVironment is an established supplier whose Switchblade loitering munitions, Puma drones and LOCUST laser systems already sit inside U.S. military programs, which gives it a longer production record, while Ondas is still integrating the companies it bought.

Red Cat concentrates on small tactical drones such as the Black Widow, plus uncrewed surface vessels through Blue Ops. Kratos operates at larger scale, selling jet-powered drones like the Valkyrie, hypersonic vehicles and small jet engines to the U.S. military and allied governments.

What Ondas’ Report Means for the Drone Rally

Ondas’s upcoming report will show whether the recent order surge turns into revenue within its guidance range. Bulls say a strong quarter could pressure short sellers and confirm the acquisition strategy. The bears point to the company’s $51.3 million operating cash burn in Q1 2026, dilution risk and earnings that swing with non-cash warrant liability changes.

AeroVironment carries its own risks, including the SCAR program termination that removed $1.5 billion from its unfunded backlog and the ongoing BlueHalo integration. Shareholders can watch for follow-on task orders under AeroVironment’s IDIQ as the clearest sign the ceiling is becoming revenue.

These drone stocks can be fast movers in both directions. Keeping your share exposure smaller could make sense until the debate over Ondas’s order conversion resolves.

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