Ondas (ONDS) Q3 2026: Revenue Surges 1,559% With $835M Backlog

Ondas reported Q3 2026 revenue of $167.49 million, beating the $148.04 million consensus by 13.14% and representing growth of more than 1,558% year over year. Counter-UAS systems, precision strike, and land systems all contributed to the surge, with management citing both acquisition-driven scale and 64% pro forma organic growth as key drivers.

GAAP EPS came in at a loss of $0.10, missing expectations of a $0.09 loss. That figure is heavily distorted by one-time items, including non-cash warrant fair-value gains, stock-based compensation, an inventory step-up from purchase accounting, and acquisition-related cash expenses. No adjusted EPS figure was disclosed.

Gross margin compressed to 21.8%, pressured by the inventory step-up and ramp inefficiencies in the precision-strike segment. Management guided for similar margin levels in Q4 before a recovery to historical levels thereafter. CEO Eric Brock described the current phase as being about disciplined execution, delivering on customer commitments, integrating capabilities, and converting demand into sustainable growth and improving profitability.

Backlog stands at $835 million, giving management enough visibility to raise full-year 2026 revenue guidance to at least $550 million, up from a prior range of $525 to $550 million. Q4 alone is expected to deliver revenue above $250 million, driven by production ramps of the ULTRA and IonStrike programs and continued shipments under the U.S. Army LUS contract.

Ondas also set an initial 2027 revenue target of at least $1.1 billion, excluding any additional acquisitions, which would represent roughly 100% growth over the raised 2026 guidance. The company pulled forward its company-wide adjusted EBITDA profitability timeline to Q3 2027 from Q4 2027. With six acquisitions completed in the period and a $214 million Q3 bookings figure, integration risk is real alongside a strong demand signal.