Red Cat Holdings (RCAT) Stock Is Jumping Today: What’s Moving Drone Stocks?

Eric Bleeker Mon, August 10, 2026 at 6:05 PM UTC

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RCAT surged 22% in a week despite double-missing estimates, as 527% revenue growth and $325M in cash overshadowed the headline shortfalls.

KTOS, AVAV, UMAC, and ONDS all gained 20%+ in one week, fueled by the $1.1B Drone Dominance program and surging national security budgets.

Six analysts rate RCAT a buy with a $21 consensus target, but the stock must first reclaim its $10 50-day moving average to sustain the recovery.

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Shares of Red Cat Holdings (NASDAQ:RCAT) are extending a sharp post-earnings rebound, rising 6.84% in Monday trading to $9.84. That builds on a 22.31% gain over the past week, a run that started from a $7.53 base on July 31. The question worth asking: is the entire drone group moving, or is this RCAT alone?

Post-Earnings Rebound Overrides the Double Miss

Red Cat reported Q2 2026 results on August 6, and on the headline numbers, it was a double miss. Revenue of $20.19 million came in 10.60% below consensus, and GAAP EPS of -$0.26 missed the -$0.17 estimate. The stock closed at $8.70 the day of the earnings report.

The underlying business is telling a different story. Underneath the miss, revenue grew 527% year-over-year, gross margin expanded to 16.1% (up 39% YoY and 27% sequentially), and the company reaffirmed its full-year revenue target of $150 million to $180 million. With $325.55 million in cash and progression to Gauntlet II of the Drone Dominance program, the balance sheet and pipeline overshadowed the shortfall.

CEO Jeff Thompson framed it directly: "With more than $325 million of cash on the balance sheet, expanding manufacturing capacity and a growing Family of Systems spanning air, land and sea, we believe Red Cat is uniquely positioned to capitalize on the accelerating adoption of unmanned and autonomous systems."

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The Whole Drone Group Is Moving

This is a sector-wide move. Every drone and defense-autonomy peer has posted a double-digit weekly gain, driven by the same tailwinds: the $1.1 billion Department of War Drone Dominance program, NDAA-compliant domestic supply chain demand, and the projected $1.5 trillion Fiscal 2027 National Security spend. Another key driver could be Boeing's investment into Archer Aviation (NYSE: ACHR), which is a legitimizing factor to startups across aviation and the broader defense space.

Ticker / Company

Today

1-Week

Market Cap

RCAT / Red Cat

+6.84%

+22.31%

$1.49B

KTOS / Kratos Defense

+1.27%

+30.41%

$11.63B

AVAV / AeroVironment

+0.81%

+25.01%

$9.53B

UMAC / Unusual Machines

+3.41%

+23.39%

$1.35B

ONDS / Ondas Holdings

+1.65%

+21.63%

$5.28B

Kratos Defense (NASDAQ:KTOS) has led the pack, aided by a Q2 print that beat revenue by 11.54% and raised full-year guidance to $1.75 billion to $1.81 billion. AeroVironment (NASDAQ:AVAV), Unusual Machines (NYSE:UMAC), and Ondas Holdings (NASDAQ:ONDS) round out a group where every name has been marked up by more than 20% in a single week. UMAC, which reported the same day as RCAT and delivered 687% revenue growth, tells the same story: the market is paying up for domestic drone capacity ahead of a Q4 procurement ramp.

RCAT is a laggard turning into a catch-up trade. It sits at 2.97x price-to-book and 25.69x price-to-sales, with the sell-side carrying an average target of $21.17 against six buy ratings and zero holds or sells.

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Source: “AOL Money”