Ondas Inc Q3 revenue beats on acquisitions, demand for defense systems 

Overview

• US autonomous systems provider's Q3 revenue more than 16x yr/yr, beating analyst expectations

• Q3 adjusted EBITDA loss widened and missed analyst expectations

• Company attributed revenue growth to strong demand for counter-UAS, precision strike, and land systems

Outlook

• Ondas raises 2026 revenue target to at least $550 mln, up from prior $525-$550 mln

• Company targets Q4 2026 revenue above $250 mln

• Ondas issues initial 2027 revenue target of at least $1.1 bln

Result Drivers

• ACQUISITIONS - Revenue growth benefited from contributions of acquired businesses and expanded technology portfolio

• DEMAND FOR DEFENSE SYSTEMS - Strong demand for counter-UAS, precision strike, and land systems supported revenue growth

• MARGIN PRESSURE - Gross margin declined due to higher amortization, inventory step-up from acquisitions, and production inefficiencies in ramping large programs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy"

• Wall Street's median 12-month price target for Ondas Inc is $18.50, about 222.9% above its November 11 closing price of $5.73

Reuters Recommended Reads

• Nov 10 - Firefly Aerospace Q3 revenue beats on contract wins

• Nov 10 - Mercury Systems Q1 revenue beat; raises FY27 outlook

• Nov 12 - Stratasys Q3 revenue beats on strength in aerospace and defense segment

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)