Best Drone Stocks to Buy in 2025-2026: A Complete Guide to the Soaring Sector

The unmanned aerial vehicle market is experiencing unprecedented momentum, with investor portfolios increasingly focused on drone stocks that promise substantial returns. What started as specialized military or hobbyist applications has evolved into a multi-sector phenomenon—reshaping defense strategies, revolutionizing agriculture, streamlining logistics, and enabling infrastructure monitoring. The pace of adoption is accelerating rapidly, and 2025 marked a pivotal moment with multiple breakthrough IPOs entering the market. Consider the debut of AIRO Group Holdings, Inc. (NYSE: AIRO), which went public on June 13, 2025, with shares surging approximately 140% on day one—a clear signal of investor confidence in next-generation autonomous systems. Meanwhile, China’s drone sector continues expanding aggressively, with 2.2 million registered units currently in operation and ambitious plans positioning the “low-altitude economy” as a strategic pillar, potentially valued at $490 billion by 2035. The U.S. landscape is equally promising, driven by geopolitical considerations and forward-thinking policy frameworks that are catalyzing innovation at an unprecedented scale.

Top Drone Stocks on NYSE and NASDAQ for Investors

If you’re building a watchlist of drone stocks worth monitoring, here’s a curated selection of companies trading on major U.S. exchanges:

NASDAQ-Listed Options:

• AeroVironment Inc (NASDAQ: AVAV)
• Kratos Defense & Security Solutions Inc (NASDAQ: KTOS)
• Draganfly Inc (NASDAQ: DPRO)
• Ondas Holdings Inc (NASDAQ: ONDS)
• EHang Holdings Ltd (NASDAQ: EH)
• Red Cat Holdings Inc (NASDAQ: RCAT)
• Cohu Inc (NASDAQ: COHU)
• Palantir Technologies Inc (NYSE: PLTR) – partial exposure
• Axon Enterprise Inc (NASDAQ: AXON) – partial exposure

NYSE-Listed Options:

• AIRO Group Holdings Inc (NYSE: AIRO)
• L3Harris Technologies Inc (NYSE: LHX)

These listings represent a mix of pure-play drone manufacturers and companies with significant exposure to autonomous systems development.

Which Drone Stocks Led the Charge in 2025?

The performance landscape reveals clear winners among drone stocks last year. AIRO Group emerged as the standout performer, capitalizing on its June listing with explosive first-day gains reflecting strong institutional appetite for military-grade autonomous platforms. The company’s positioning in global defense solutions amid regional conflicts provided compelling momentum throughout the year.

AeroVironment (NASDAQ: AVAV) staged a remarkable recovery from earlier-year weakness, driven by sustained demand for its Switchblade tactical system—equipment actively deployed in conflict zones. Analyst upgrades and positive quarterly guidance reinforced positive sentiment around the stock.

Kratos Defense (NASDAQ: KTOS) delivered consistent gains, supported by U.S. defense procurement contracts. The company’s Valkyrie jet-powered platform, developed through the loyal wingman unmanned combat vehicle program, exemplifies cutting-edge defense innovation.

Ondas Holdings (NASDAQ: ONDS) demonstrated significant upside, bolstered by strategic alliances with leading data analytics firms. These partnerships are enhancing autonomous capabilities and industrial-scale data collection for commercial drone operations.

What’s Driving the Drone Sector Surge?

Multiple interconnected factors are propelling drone stocks higher. Elevated geopolitical tensions have substantially increased defense budgets globally, with unmanned systems now central to modern military strategy and procurement planning. However, military demand represents only part of the story—commercial applications are equally transformative, spanning precision agriculture, bridge and infrastructure assessment, autonomous traffic monitoring, and last-mile delivery networks.

Regulatory momentum provides additional tailwinds. The U.S. framework continues evolving, with executive actions and FAA guideline updates creating favorable conditions for expanded drone integration across urban and rural environments. Simultaneously, technological breakthroughs are redefining what drones can accomplish. Advances in artificial intelligence, LiDAR sensing technology, and 5G connectivity are enabling autonomous operations at scale, dramatically improving data processing speeds and operational ranges while reducing human intervention requirements.

The Future of Drone Stocks: Market Growth Projections

Market analysts project the global unmanned aerial vehicle sector will expand at a 14.3% compound annual growth rate through 2030, with commercial applications accelerating at approximately 20% CAGR through 2032. Companies demonstrating diversification across military contracts, industrial applications, and software integration capabilities are expected to capture the largest market share gains.

Headwinds remain—including regulatory uncertainty, intensifying international competition, and the perpetual threat of technological obsolescence. Nevertheless, the structural fundamentals supporting drone stocks remain compelling. With expanding demand, continuous innovation cycles, and massive addressable markets, drone stocks have secured prominent positions in growth-oriented investment strategies for 2025 and beyond. For portfolios seeking exposure to high-growth sectors combining innovation, resilience, and substantial upside potential, drone stocks represent a strategically compelling opportunity set.