3 Robotics Stocks Animating Markets With Ample Upside to Go

Robotics is a hot topic in 2026, especially as it relates to extending AI development. Advancing AI technology, including autonomy, enables a wider range of applications and, with it, an accelerating outlook for growth in robotics companies.

With an expected compound annual growth rate (CAGR) in the high double digits, the robotics industry is forecast to grow nearly 200% over the next five years, driven by defense and industrial spending. This is an examination of three robotics stocks that are animating market interest today and where their stock prices could be heading in 2026. 

Teledyne Accelerates Under the Influence of Strong Results

Teledyne (NYSE: TDY) is well-positioned in the robotics industry, providing many of the enabling technologies, including imaging and sensing, as well as autonomous and unmanned vehicles.

Its Q4 2025 earnings report drove the stock price to a new high, due to strength in its critical segments, including FLIR and Marine Instrumentation. Both posted record sales of unmanned systems, underpinned by defense-related contracts and healthy cash flow. Cash flow is particularly critical for TDY investors, as it enables buybacks and improved shareholder leverage. 

Teledyne’s 2026 guidance was strong. The company forecasted above-consensus revenue and earnings, driven by a 10% increase in unmanned systems and widening margins in Digital Imaging.

The impact on sentiment was bullish, spurring several analysts to initiate coverage and others to lift their price targets. As it stands, analyst consensus views the stock as fairly valued after its January price spike, but the trend points to fresh all-time highs. Catalysts for the stock price in 2026 include increased defense spending, acquisitional growth, widening margins, and institutional accumulation. 

Teradyne Robots, Easy to Use and Quick Returns

Teradyne’s (NASDAQ: TER) core business is semiconductor testing equipment, but it is not limited to that regard. The company also has a healthy robotics business, with sales in the industrial and defense sectors.

The company’s robots enable automated industrial operation and manufacturing, including sensitive defense applications, and are considered among the easiest to deploy.

The 2025 results included significant AI-related strength in the core segments and sequential improvements in the robotics segment, pointing to recovery and acceleration in 2026. 

Analyst trends are robust and underpin a rapid price rise in TER stock. MarketBeat tracks 17 analysts covering TER, with coverage—and price targets—steadily rising from last year.

Although the consensus price target is lower than the January price action, it is up more than 30% in the last 12 months, with fresh targets pointing to the $275 region. A move to $275 would be approximately 15% upside from January 2026 resistance levels, sufficient for an all-time high. 

Kraken Robotics on Track to Release the Profits

Kraken Robotics (OTCMKTS: KRKNF) is a smaller, Canadian-based robotics manufacturer focused on undersea and submersible vehicles. Its unmanned systems, including components and full vehicles, are in increasing demand from government and defense customers, including Teledyne. 

Teledyne is incorporating Kraken battery and sonar systems into its unmanned submersibles, providing investors with some revenue visibility.

As it stands, the company is forecasted to sustain a high, bordering on hyper, growth pace for the next decade. 

Analysts and institutional coverage are tepid, but there are catalysts for both in 2026. The company is seen as positioning itself for a TSX listing, a move that would open the door to a dual listing in the United States. 

The combination is expected to improve operational visibility and increase institutional support, potentially leading to inclusion in a major index, such as the Russell 2000.

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The article "3 Robotics Stocks Animating Markets With Ample Upside to Go" first appeared on MarketBeat.