Red Cat Holdings, Inc. (NASDAQ:RCAT) is among the 9 Best Drone Stocks to Buy According to Wall Street Analysts. On May 7, the company reported financial results for the first quarter of 2026.
Total revenue was reported at $15.5 million, growing 849% year-over-year. Gross profit came in at $2 million, increasing $2.8 million from the same period last year. Gross margin was 12.7%, improving 199% sequentially, and up from (52.1)% in the prior year’s quarter.
Business highlights included Red Cat Holdings, Inc. receiving new orders for its Black Widow drones from allies in NATO and the Asia-Pacific, alongside a strategic agreement with Ukrainian state-owned entity Spetstechnoexport to collaborate on advanced unmanned and robotic systems.
During the quarter, the company also announced the acquisition of California-based Apium Swarm Robotics, Inc. The firm builds distributed control systems for uncrewed surface vessels and swarming drones.
Following the earnings call, Needham analyst Austin Bohlig reiterated a Buy rating on the stock on May 8, with a share price target of $20, representing 93% upside from Friday’s close.
Red Cat Holdings, Inc. provides drone and robotics solutions for defense, national security, and commercial needs.
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