Top Drone Tech Stocks to Add to the Portfolio to Boost Returns

An updated edition of the Sept 12, 2025 article.

Unmanned aerial vehicles (UAVs), commonly known as drones, have emerged as one of the most transformative innovations in the dynamic landscape of next-generation technologies.

While defense remains a core market, drones are rapidly gaining traction across a wide range of industries. Drones have become integral to various sectors like mining, infrastructure monitoring, real estate, oil and gas exploration, logistics and even filmmaking. From aerial photography and agricultural mapping, drones are transforming how businesses collect data and operate across sectors.

The drone technology continues to reach new heights, fueled by breakthroughs in autonomous technology and AI-powered navigation. The embedding of AI has made modern drones faster and more versatile than ever. AI incorporation is driving the autonomous navigation functionality of drones, enabling them to autonomously plan their flight paths based on real-time data, such as environmental terrain. The integration of 5G and advanced Wi-Fi technology has further improved real-time data transmission, expanding commercial applications.

With regulatory frameworks evolving and military and commercial adoption gaining pace, the drone sector has a long runway for growth. Drone tech companies with strong R&D pipelines, diversified end-market exposure, and strategic collaborations are well-positioned to flourish in this evolving landscape.

The drone industry is witnessing rapid growth, with the global drone tech market expected to witness a CAGR of 14.3% from 2025 to 2030, according to a report from Grand View Research, whereas the commercial drone market is expected to witness a CAGR of 20.8% from 2025 to 2032, per the Fortune Business Insights report. For investors, this provides an exciting long-term opportunity.

If you're looking to capitalize on this trend, our Drone Technology Screen makes it easy to identify high-potential stocks, such as Draganfly Inc. (DPRO), Ondas Holdings Inc. (ONDS) and Unusual Machines, Inc. (UMAC).

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3 Drone Tech Stocks to Keep an Eye on

Draganfly is a Canada-based drone solutions and systems developer. The company’s drones include Commander 3XL, Heavy Lift Drone, Commander 2 and Draganfly Medical Response Drone. The company’s Apex drone (launched last September) is aimed at the intelligence, surveillance and reconnaissance or ISR, marketed for both the military and public safety. Apex drone boasts dual payload capabilities and AI computing powered by NVIDIA’s chips. Further, DPRO’s NDAA-compliant FlexForce FPV (first-person view) drone can be flown individually or autonomously, or swarmed.

By leveraging AI, machine learning and cutting-edge hardware, the company aims to solidify its position as a key player in the global drone ecosystem, offering both turnkey drone systems and custom solutions tailored to evolving industry needs. On the last earnings call, DPRO highlighted that its Commander 3XL plus DROPS (payload provider) demonstrated 100% success at the U.S. Army’s SMEX25 event. It also delivered its Flex FPV system to a key U.S. prime defense contractor. It recently teamed up with Palladyne AI to enhance its UAV platforms with the latter’s Pilot AI software.

DPRO, a Zacks Rank #2 (Buy) stock, is expanding its footprint in the demining vertical with collaborations with Autonome Labs and SafeLane. With its data, expertise and AI-powered aerial mapping capabilities, DPRO is well-positioned to expand in this niche market. In the last reported quarter, the company achieved 22% year-over-year revenue growth, supported by rising product sales.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ondas Holdings designs, develops and markets commercial drone solutions for critical industrial and government applications through its Ondas Autonomous Systems (OAS) business division. This division includes Airobotics, American Robotics, Iron Drone and Apeiro Motion. Airobotics is the developer of Optimus System, an autonomous drone system, while Apeiro Motion develops ground robotics and tethered UAV solutions. Iron Drone system is an autonomous counter-drone solution where an intercepting drone guided by radar is used to counteract a drone attack using a parachute and ballistic net to lower it to the ground.

ONDS is expanding its footprint with new defense and homeland security customers across Europe, the Middle East, and the United States. ONDS is witnessing growing traction for both its Optimus System and Iron Drone Radar system and expects the Mistral partnership to boost U.S. government adoption of these two platforms.

ONDS is focused on strategic M&A to drive revenue expansion. It recently announced plans to acquire Sentry CS Ltd. Israel-based Sentry CS develops Cyber-over-RF and Protocol-Manipulation counter-UAS technology. Before that, it acquired a controlling interest in Insight Intelligent Sensors and in 4M Defense Ltd. Insight Intelligent Sensors specializes in the development of AI-driven electro-optical sensing systems. At the same time, 4M Defense is a smart demining company. 4M defense’s platform boasts advanced demining capabilities, like robotic systems with terrestrial and subsurface AI-powered intelligence tech.

ONDS, which carries a Zacks Rank #2, expects revenues for the full year to be at least $25 million, with at least $20 million coming from the OAS business unit.

Unusual Machines is well-positioned within the evolving drone industry through its focus on manufacturing and selling (through B2B sales and a curated retail channel) small drones and essential components. The FPV segment is UMAC’s core operational area within the drone industry. The FPV segment centers around drones that are operated using wearable display devices or screens, providing a first-person view from the drone’s onboard camera. The company acquired Fat Shark and Rotor Riot businesses from Red Cat Holdings (RCAT) in 2024. It completed the acquisition of Rotor Lab Pty Ltd in September 2025. Australia-based Rotar Lab develops electric motors and propulsion systems for unmanned aerial systems.

The Drones for America Act, introduced in the Senate on June 25, 2025, is likely to benefit U.S.-based companies as the Act intends to phase out drones with Chinese components by 2028. This is likely to fuel growth in contract wins in the defense and enterprise segments for UMAC. In addition, broader policy measures such as the National Defense Authorization Act (NDAA) and the Blue UAS Framework are actively reshaping the industry in favor of domestic producers like UMAC, giving them a competitive edge.

Last month, UMAC won an order for 3,500 NDAA-compliant motors from the U.S. Army's 101st Airborne Division. The contract also includes domestically made, NDAA-compliant and BLUE UAS-listed components,  Aura VTX, Aura Analog Camera, Brave Flight Controller and Brave ESC. Before that, it secured an $800,000 order from Red Cat for its Aura VTX, Aura Analog Camera, Brave ESC, Brave Flight Controller, HDO+ Goggles and motors. RCAT will integrate these components into its FANG drones. These orders underscore the growing demand for U.S.-made, NDAA-compliant technologies across defense, public safety and other government sectors.

In October, UMAC, which carries a Zacks Rank #3 (Hold), announced that its 17,000-square-foot drone motor factory in Orlando began operations, thereby expanding U.S.-based production. This facility is focused on high-throughput motor assembly and testing.

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