The $10 Drone Stock That Won't Be This Cheap for Very Long
The wars in Ukraine and Iran have thrust unmanned aircraft systems into the spotlight as essential tools for advancing military objectives. From precision strikes to real-time intelligence gathering, drones have proven decisive on the battlefield, reshaping tactics and strategies worldwide. Experts predict drones will form an even larger part of future global conflicts, serving both offensive maneuvers and defensive countermeasures against enemy threats.
Ondas (ONDS) is rapidly positioning itself to capture a larger share of the government contracts fueling this demand for advanced military hardware. Though still small compared to established rivals like Kratos Defense (KTOS) and AeroVironment (AVAV), and currently trading around $10 per share, ONDS won't remain this affordable for long.
Palantir Partnership Elevates Multi-Domain ISR Capabilities
Yesterday, Ondas announced a groundbreaking collaboration with Palantir Technologies (PLTR) and privately held World View Enterprises. The trio is building a next-generation multi-domain intelligence platform that fuses AI-driven software with persistent aerial and stratospheric surveillance. Palantir's Artificial Intelligence Platform (AIP) will integrate with Ondas' autonomous systems – including the FAA-certified Optimus UAS, Iron Drone Raider counter-UAS, Roboteam tactical ground robots, and Sentrycs cyber solutions – alongside World View's high-altitude Stratollite platform.
This alliance shifts the focus from raw data collection to real-time, actionable intelligence. Three key programs are already underway: Palantir Warp Speed for supply-chain optimization, AI Flight Director for mission planning, and SkyWeaver for edge intelligence aboard Stratollites. Executive quotes underscore the ambition – Palantir CEO Alex Karp called the combination a "new frontier in operational intelligence," while Ondas Chairman Eric Brock highlighted a "scalable, software-defined ISR architecture." Integrations begin in Q4 2026, targeting defense, homeland security, and allied customers hungry for low-latency, multi-domain awareness.
Mistral Merger Unlocks $1 Billion+ in Prime DoD Contracts
Just days earlier, Ondas sealed a $175 million all-stock merger with U.S. defense prime contractor Mistral, expected to close in Q2. Mistral brings direct access to more than $1 billion in existing Indefinite Delivery/Indefinite Quantity (IDIQ) contracts across U.S. Army and Special Operations Command programs involving weapon systems, UAS, and drones.
The deal transforms Ondas from a subcontractor into a prime contractor, dramatically expanding its addressable market and accelerating revenue recognition. Management will provide detailed Mistral guidance on its March 25 earnings call. Combined with prior acquisitions like Roboteam and Sentrycs, the company is assembling a full-spectrum autonomous systems portfolio ideally suited for the drone-heavy future of warfare.
Ondas has steadily raised its revenue forecasts amid this momentum. It now expects to report approximately $50 million in full-year 2025 revenue – up sharply from just $7.2 million in 2024 – with preliminary Q4 results already beating guidance at $29.1 million to $30.1 million. For 2026, the company reiterates $170 million to $180 million in revenue before any incremental contributions from recent deals, a figure analysts believe could climb higher as Mistral ramps.
Bottom Line
ONDS nearly quadrupled in value in 2025 as investors recognized its pivot to defense-focused autonomy. Wall Street's consensus price target sits near $16, implying roughly 57% upside from current levels around $10. Yet if Ondas executes on its partnerships, acquisitions, and explosive backlog growth, the stock could readily double – or more – in the years ahead.
For investors seeking exposure to the drone revolution at a still-reasonable valuation, ONDS offers a compelling opportunity that appears unlikely to stay this cheap for very long.