The DroneShield Ltd (ASX: DRO) share price is down 4% after providing a committed revenue update about FY26.
DroneShield is a global player in the AI-powered counter-drone and uncrewed autonomous systems defence. It has interoperable sensing, electronic warfare and command-and-control solutions that detect, track, identify and defeat drone threats across fixed-site, dismounted and on-the-move operations.
It’s used by military, government, law enforcement, critical infrastructure and commercial customers.
Revenue update
The company gave investors an update about its committed revenue, which is the value of its hardware, services, warranties and subscriptions delivered and scheduled for delivery within the period, based on confirmed purchase orders.
DroneShield said that FY26 committed revenue was $261 million, which is the midpoint of its FY26 revenue outlook range of between $250 million to $270 million. That guidance was provided in July 2026.
The company said that its committed revenue of $261 million is up 35% year on year and represents 121% of FY25 revenue.
The DroneShield CEO and Managing Director Angus Bean said:
This is an encouraging update as we approach the end of the year. FY2026 Committed Revenue of $261 million is approximately 35% above that in October 2025, and 121% of our full-year revenue in 2025. We also have $29 million in Committed Revenue for FY2027 and a further $17 million for FY2028 and beyond.
Committed Revenue give us valuable visibility into future periods, with growing evidence of DroneShield’s leading role in the counter-drone industry. 2026 has been an important year when foundations have been reset, the platform has been built out, and we prepare for continued scale and growth in 2027 and beyond.
Other commentary
The company said that the market is expanding. Drone threats now extend to non-military situations across airports, prisons, critical infrastructure, public safety and major events.
It also said that counter-drone equipment is now core, with it funded by multi-year defence spending across NATO and allied markets.
The company also noted that revenue growth, gross profit margin improvement and operational cost management lead to operating age delivering sustained profitability.
Final thoughts on the DroneShield share price
The company continues to deliver growth, which is impressive considering how much it has already grown in the last few years.
DroneShield continues to build its product and service offering, which helps boost its potential revenue in the year(s) ahead.
It’s now down 72% in the past year and I think that it’s now reaching a level where the financials can help justify supporting the DroneShield share price. Investors don’t seem excited about its current revenue generation, but it could be undervalued at some point (if it isn’t already).
But, for now, there are other ASX growth shares I’d focus on instead.
