ASX DRO Stock Forecast 2026: Strong Revenue Growth + Possible 200% Upside

Introduction

If you’re watching for potential high-growth opportunities, ASX DRO Stock Forecast 2026 could catch your attention. The company behind dro asx has made waves recently with expanding contracts, rising revenue, and growing interest from investors.

In this article, we explore why many believe DRO could offer strong returns — possibly even a 200% upside by 2026, while also considering the risks.

Who Is the Company Behind DRO

DRO is the ticker symbol for DroneShield on the Australian Securities Exchange.

DroneShield specializes in counter‑drone (C‑UxS) technologies: systems designed to detect, monitor, and neutralize potentially hostile or unauthorized drones.

Their solutions are used by military, government, security agencies, and even critical infrastructure operators worldwide — giving them a broad potential client base beyond just defence.

Recent Performance: What DroneShield Has Achieved

In FY2024, DroneShield posted revenue of AU$57.5 million, marking a year‑on‑year growth of about 6.4%.

Notably, the company is pivoting to recurring revenue: its SaaS (software‑as‑a‑service) revenue doubled to AU$2.8 million, signaling diversification beyond one‑time hardware sales.

For FY2025, DroneShield had already secured AU$52 million in contracted revenue, roughly 90% of its 2024 total — giving decent visibility into near‑term performance.

Meanwhile, its order pipeline is very robust — quoted at around AU$1.2 billion.

Why 2026 Could Be a Breakout Year

Rising Demand for Counter‑Drone Tech

The global environment — with increasing drone activity, threats, and security concerns — is pushing demand for counter‑drone solutions across military, border security, airports, infrastructure, and civil sectors.

DroneShield’s growing product suite (from handheld jammers to fixed installations) and expansion into software solutions position it to capture a big part of this growing market.

Strong Order Pipeline and Growth Momentum

With AU$1.2 billion in active project discussions and AU$52 million already contracted for FY2025, the company has a clear backlog that could translate into significantly higher revenues.

Management’s plan to ramp up manufacturing capacity — including investment in a 3,000 sqm facility in Sydney — shows ambition to scale output significantly by 2026.

Diversification Towards Recurring Revenue

The doubling of SaaS revenue indicates that DroneShield is not solely reliant on one‑time hardware sales. Recurring software or service revenue can provide more stability and higher margins — a sign of maturation for a growth company.

This shift helps mitigate the cyclicality of defence contracts and could make financial performance more predictable.

Increased Market Recognition and Investor Confidence

As of September 2025, DroneShield was added to the S&P/ASX 200 index. This inclusion often draws more institutional investors and improves liquidity, which is a boost to long‑term investor confidence.

The rising share price and market cap reflect growing belief in DroneShield’s long‑term potential.

Possible Risks and Headwinds

Valuation risk: Because a lot of growth is priced in already, any delay in contract wins or execution could hit the stock hard. Analysts have warned of volatility despite bullish technical charts.

Dependence on global security trends: Demand for counter‑drone technologies often correlates with geopolitical tensions. A de‑escalation globally may slow contract momentum.

Scaling challenges: Rapid expansion — both in manufacturing capacity and workforce — adds execution risk. Increased costs or supply chain problems could suppress margins, at least in the short‑term.

Market sentiment and volatility: High‑growth defence‑tech stocks tend to be more sensitive to overall market cycles, sector rotations, or broader tech sell‑offs.

What Could a 200% Upside Look Like by 2026?

If DroneShield converts a significant portion of its AU$1.2 billion pipeline into firm contracts over the next 12–18 months, revenues could grow many times over from FY2024 levels.

Recurring SaaS income plus large hardware‑based orders could together push profits higher, possibly resulting in a compelling valuation if the broader market stays supportive.

Inclusion in a major index (ASX 200) may continue to attract institutional investors, improving liquidity and stability.

Given the large contract wins and growth potential, a rally toward valuations more than double the current price seems plausible — but only if execution remains smooth and global demand holds up.

What Investors Should Watch in 2025–2026

Quarterly revenue and contract announcements: look for evidence that the pipeline is turning into actual orders.

Growth in SaaS and software revenue: this will show if the company is successfully shifting towards recurring revenue.

Execution on manufacturing expansion: smooth scaling will be critical to meet larger contracts and increased demand.

Developments in global security environment and defence spending trends — especially conflicts or rising drone threats.

General market sentiment toward high‑growth and defence‑tech stocks, which can influence valuation momentum.

Final Thoughts

The case for ASX DRO Stock Forecast 2026 is compelling: strong recent growth, a robust order pipeline, diversification toward recurring revenue, and growing investor recognition. If DroneShield manages to execute its expansion plans, convert major contracts, and ride the rising global demand for counter‑drone solutions, the stock could see a substantial upside — potentially even a 200% increase from today’s levels.

Yet, as with all high‑growth opportunities, risk remains. Valuation, geopolitical shifts, and execution challenges can easily impact the trajectory. For investors willing to be patient and track the key indicators — contract wins, revenue growth, and market conditions — DRO could be an intriguing long‑term play.