Ondas Inc. (ONDS) shares closed at $13.22 on Friday, capping a 46% weekly gain fueled by a surge in orders for defense and autonomous systems. The company reported over $30 million in orders during May, pushing its second-quarter-to-date total past $110 million. Trading volume spiked, with more than 248 million shares changing hands on Thursday alone as the stock jumped 22.7%.
The rally was driven by strong investor demand for defense-related technology stocks, particularly those involved in counter-drone systems and autonomous robotics. Ondas said its backlog reached a pro forma $457 million after the first quarter, representing orders booked but not yet recognized as revenue. The company raised its 2026 revenue target to at least $390 million, up from prior guidance, after posting first-quarter revenue of $50.1 million—a more than tenfold increase from a year earlier.
CEO Eric Brock attributed the momentum to what he called “powerful demand tailwinds” in counter-unmanned aerial systems and defense robotics. “We secured over $30 million in new orders during May,” Brock said in a statement. Co-CEO Oshri Lugassy added that customers are increasingly seeking integrated mission architectures rather than individual drones or sensors, signaling a shift toward platform-based solutions.
Despite the sharp rally, risks remain. Ondas expects adjusted EBITDA losses to stay elevated in the second quarter, and the company’s capital structure is drawing scrutiny. A May 28 SEC filing revealed that shareholders will vote on increasing authorized common stock to 1.2 billion shares from 800 million, along with expanding the 2021 stock incentive plan share pool to 81 million from 61 million. The potential dilution could weigh on sentiment if the measures pass.
Macroeconomic factors also loom. The May nonfarm payrolls report is due June 5, and investors are watching for signs that strong jobs data and persistent inflation could push interest rate expectations higher. Higher bond yields have already pressured growth stocks, and Ondas’ recent gains leave little room for error. Any slowdown in order conversion, a decline in defense spending, or a broader pullback in high-growth names could trigger a sharp reversal.
Broader market conditions were supportive last week. Major indices hit new highs, with the Nasdaq rising 2.39% for the week, driven by strength in technology shares and upbeat earnings expectations. “There’s definitely euphoric sentiment in the market around AI,” Wells Fargo chief equity strategist Ohsung Kwon told Reuters.
Ondas is not alone in benefiting from renewed interest in defense tech. Reports that the Trump administration is considering investments in U.S. drone manufacturers lifted shares of peers such as Red Cat, Kratos Defense, and AeroVironment in premarket trading. However, Ondas’ 46% weekly gain makes it particularly vulnerable to profit-taking or any negative catalysts.
Looking ahead, investors will focus on whether the order pipeline can sustain momentum when U.S. markets reopen. The shareholder vote on the share count increase and the upcoming payrolls data will be key events to watch. For now, Ondas has captured the market’s attention, but the path forward remains uncertain.
