Shares of DroneShield Ltd (ASX: DRO) surged 6.80% in Tuesday's pre-market trading, building on the strong performance seen throughout the fiscal year 2025. The counter-drone technology company has captured investors' attention with its impressive financial results and promising outlook in the growing defense sector.

DroneShield's stock price movement follows a roller-coaster year that ultimately resulted in a 33% return for FY 2025. The company's recent announcements have been particularly encouraging, with year-to-date secured revenues reaching $161 million as of June 25, nearly tripling the entire previous year's revenue of $57.5 million. This remarkable growth has been driven by a series of significant contract wins, especially since the start of the calendar year.

Looking ahead, DroneShield appears well-positioned to capitalize on the expected increase in global defense spending. As nations worldwide pledge to boost their defense budgets, the demand for DroneShield's counter-drone technologies could see further growth. This positive outlook, combined with the company's strong financial performance, seems to be fueling investor optimism and contributing to the stock's upward momentum.