Ondas Inc. ONDS will release results for the second quarter of 2026 on Aug 13.
ONDS’ earnings missed the Zacks Consensus Estimate in the last quarter. Its earnings have missed estimates in three of the four trailing quarters, while beating once, with an average negative surprise of 210.68%.
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Let us see how ONDS is expected to fare in terms of revenues and earnings this time.
The Zacks Consensus Estimate for the second-quarter bottom line is a loss of 7 cents, unchanged in the past 30 days. The same for revenues stands at $66.7 million, indicating a 963.5% jump from the year-ago actual.
The company’s top line is driven by strong business momentum in its Ondas Autonomous Systems (“OAS”) division. Robust M&A activity is a key factor underpinning rapid OAS scaling.
Earnings Whispers for ONDS
Our proven model does not predict an earnings beat for Ondas this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
ONDS currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
ONDS: Key Insights Ahead of Q2
Ondas entered the second quarter with significant momentum in the OAS. The company reported first-quarter revenues of $50.1 million, up more than 10X year over year, driven by robust demand across counter-drone (Cyber-over-RF platform and Iron Drone interceptor systems), Intelligence, Surveillance, Reconnaissance, or ISR, and other defense-related solutions.
The demand is likely to have remained strong amid simmering geopolitical tensions across the globe. This is likely to have cushioned the second quarter performance. ONDS’ active deployment spans more than 45 countries across defense, homeland security, public safety markets and critical infrastructure.
Ondas, through rapid M&A, has built a multi-domain autonomy platform spanning ISR, c-UAS, loitering munitions/strike systems, unmanned ground vehicles and stratospheric sensing via World View acquisition. The Mistral acquisition has positioned it to compete more effectively for large-scale, multi-year government contracts. Mistral is a prime contractor on U.S. Army and USSOCOM uncrewed and autonomous platforms procurement vehicles. It brings U.S.-based manufacturing, assembly, integration and quality assurance capabilities to Ondas’ operations, supporting program execution and compliance with the country’s defense sourcing requirements.
This expanding reach is complemented by a rapidly growing opportunity set, including a $4.3 billion active pipeline and more than $1.6 billion in strategic program potential, as highlighted by management on the last earnings call. It is advancing in other markets such as Israel. The company is also targeting large-scale defense initiatives such as the LASSO program, which alone represents a potential opportunity nearing $1 billion.
Further, on July 22, management noted that the company had secured $70 million in new orders across its defense, security and autonomous technology portfolio over the past four weeks. As of June 22, 2026, Ondas noted that second-quarter-to-date order activity stood at more than $150 million.
On the last earnings call, the company raised its 2026 revenue outlook to at least $390 million, citing a backlog exceeding $450 million. However, with multiple acquisitions announced, such as Omsnisys, Cyberhawk and DZYNE, the growth narrative has become increasingly acquisition-led. Following the DZYNE acquisition (July 2026), Ondas now expects 2026 revenues of at least $525 million, up from the previous forecast of $390 million. DZYNE is expected to contribute approximately $191 million in revenues in 2026 and $300 million in 2027.
That said, execution risks remain significant. So many acquisitions in such a short period can create integration overload and execution risks, as achieving targets depends on timely integration and conversion of backlog into revenues. Even if a single large customer delays, reduces or cancels, revenues would decline materially.
Profitability remains concerning despite sharp revenue growth. Ondas faces rising operating costs as it invests in personnel and infrastructure capabilities to capture additional market opportunities. Amid rising costs, management expects adjusted EBITDA losses to have stayed elevated in the second quarter of 2026, likely marking the peak loss period. Beyond that, ONDS expects improvement throughout the year, driven by higher revenues, gross profit and operational scale.
Ondas also faces enormous competitive pressure. Players such as Red Cat Holdings RCAT, Kratos Defense & Security Solutions KTOS and Draganfly DPRO are also vying to capture a larger share.
ONDS Stock Performance vs. Peers
ONDS’ shares have inched up 3.8% in the past six months, underperforming the Wireless-National industry’s growth of 86.6%. The S&P 500 composite and the Zacks Computer and Technology sector are up 13.5% and 20.4%, respectively, over the same time frame.
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RCAT, KTOS and DPRO have lost 11.1%, 28.3% and 30.4%, respectively, over the same time frame
ONDS: Valuation Leaves Room for Debate
ONDS stock is trading at a forward 12-month price-to-sales of 6.38X compared with the industry’s 7.82X.
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In comparison, RCAT, KTOS and DPRO trade at multiples of 6.41X, 5.75X and 0.7X, respectively.
How to Approach ONDS Before Q2 Earnings Release
Ondas is seeing strong structural tailwinds driven by defense demand and an increasingly differentiated multi-domain platform.
While acquisitions strengthen the long-term growth narrative, near-term performance will hinge on integration and the company’s ability to convert its expanding opportunity set into consistent financial performance.
Investors already holding can remain invested, but new investors would be better off waiting for a more attractive entry point.
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Ondas Holdings Inc. (ONDS): Free Stock Analysis Report
Kratos Defense & Security Solutions, Inc. (KTOS): Free Stock Analysis Report
Red Cat Holdings, Inc. (RCAT): Free Stock Analysis Report
Draganfly Inc. (DPRO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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