By Kit Norton

Shares of Ondas, an autonomous drone play and a partner with Palantir, advanced Monday after the company reported fourth-quarter financial results with expectations of significant growth around its autonomous systems business segment in fiscal 2026.

The West Palm Beach, Fla.,-based company announced Monday that fourth-quarter revenue soared 634% to $30.1 million. Ondas saw a net loss of $101 million for the quarter, a steep increase from a $10.3 million loss a year ago. The company reported preliminary results Friday.

For fiscal 2025, Ondas Holdings revenue grew 604% to $50.7 million, slightly topping Wall Street estimates of $48.6 million, according to FactSet. The autonomous drone company reported an adjusted net loss of 62 cents per share for fiscal 2025. Before the release, Wall Street predicted a loss of 25 cents per share, according to FactSet.

While the company isn't close to turning a profit, Ondas sounded an optimistic tone in its earnings release.

The company raised its full-year 2026 revenue target to at least $375 million, up from its previous $170 million -- $180 million view. Ondas also outlined a Q1 2026 revenue target of $38 million -- $40 million, representing approximately 820% year-over-year growth.

Ondas said Monday that the bast majority of this expected growth will come from its autonomous systems business, with a backlog currently sitting at $68.3 million.

"We believe Ondas is well positioned entering 2026. With strong financial resources, a rapidly expanding platform, and increasing global adoption of our solutions, we see meaningful upside to our prior expectations," CEO Erik Brock said in the earnings release.

The company holds its earnings call on Wednesday. Ondas shares gained 6.7% to 10.73 Monday.

The Iran war is spurring demand for military gear and President Donald Trump said on March 6 that top defense contractors had agreed to "quadruple" weapons production. On Monday, markets digested Trump's comments that the U.S. was talking to a senior official in Iran and postponed plans to bomb power plants in Iran.

The iShares U.S. Aerospace & Defense exchange-traded fund advanced 1.5% to 225.94 on Monday.

Drone technology company AeroVironment jumped 6.3% following new business contracts. Separately, defense IPO Karman Holdings rose 4.3% to 103.68 on Monday. As of Friday's market close, Karman shares gained around 13% since the start of the war with Iran. Karman reports fiscal fourth-quarter earnings late Thursday.

In early March, Ondas reported it received multiple orders totaling approximately $6 million for dozens of counter-drone systems from its current defense and homeland security customers in the Middle East and other regions.

On March 11, Ondas and Palantir also announced a strategic partnership to integrate Palantir's foundry product into Ondas' autonomous drone platforms worldwide.

Brock said in the earnings release Monday that Palantir's artificial intelligence platform "positions Ondas at the center of next-generation, multi-domain operational environments where data fusion, autonomy and AI drive faster, more informed mission outcomes."

Write to Kit Norton at kit.norton@barrons.com

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March 23, 2026 15:50 ET (19:50 GMT)

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