From military applications to amateur photography, drones are growing in popularity, leading drone stocks to fly onto investors' radars. Business research firm IDTechEx, for example, projects that the global drone market will reach $147.8 billion in 2036, up from an estimated $69 billion in 2026.
Once you've decided to invest in a drone stock, however, there's some due diligence that's required. From considering the degree of drone market exposure you seek to whether the drone market is poised for growth are just a couple of the points to examine.
Let's take a look at some of the leading drone investment opportunities to see which are best for individual investors.
Best drone stocks to buy now
Drone technology continues to improve, and new applications for uncrewed vehicles -- such as food delivery -- are continually being explored. The U.S. Department of Defense, for example, is currently investigating the development of uncrewed vehicles that use artificial intelligence (AI) through its Replicator initiative.
Investors have a wide variety of stocks to consider when looking for exposure to drones. Although they may be unable to invest in leading recreational drone companies like DJI (a privately held company), there are plenty of drone stocks for investors to consider. Let's look at some of the most promising options.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| AeroVironment (NASDAQ:AVAV) | $12.8 billion | 0.00% | Aerospace and Defense |
| Boeing (NYSE:BA) | $169.8 billion | 0.00% | Aerospace and Defense |
| Northrop Grumman (NYSE:NOC) | $83.4 billion | 1.54% | Aerospace and Defense |
1. AeroVironment
NASDAQ: AVAV
Key Data Points
With a market capitalization of about $12 billion, AeroVironment is a smaller drone manufacturer compared to major defense companies like Boeing and Northrop Grumman. However, it's an essential consideration for people who want concentrated drone exposure.
A pure play on drones, AeroVironment provides autonomous military vehicles (both ground-based and aerial) to the U.S. government and more than 55 other countries. The company is also focused on non-military applications.
AeroVironment is developing its high-altitude, solar-powered drone, Sunglider, to help provide broadband access. The company also partnered with NASA on Ingenuity, which NASA lauds as "the first aircraft to achieve powered, controlled flight on another planet."
In an effort to expand its autonomous vehicle offerings, AeroVironment acquired BlueHalo in May 2025. Management expects the acquisition to immediately contribute to revenue, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and non-GAAP (adjusted) earnings per share in the first full fiscal year after the deal closes. Besides maritime drones, BlueHalo designs a variety of autonomous vehicles that provide militaries with sophisticated AI-based capabilities.
While it may be smaller than some of its peers, AeroVironment is performing well in fiscal 2026. Setting a company record for second quarter revenue, AeroVironment booked sales of $472.5 million, representing year-over-year growth of 151%. Plus, the company recognized improved profitability. Adjusted EBITDA for the second quarter of fiscal 2026 was $45 million compared to $25.9 million for the same period last year.
Management is confident about sustained growth in the remainder of fiscal 2026. In addition to guiding for fiscal 2026 revenue of $1.9 billion to $2 billion, the company projects adjusted EBITDA of $300 million to $320 million. For context, AeroVironment reported sales and adjusted EBITDA of $820.6 million and $146.4 million, respectively.
People who count themselves as fans of Cathie Wood will also be attracted to AeroVironment since the stock is a major holding in the ARK Autonomous Technology & Robotics ETF (ARKQ -0.21%) and the ARK Space Exploration & Innovation ETF (ARKX -0.17%).
2. Boeing
NYSE: BA
Key Data Points
As the largest aerospace and defense stock based on market cap, Boeing may be most recognizable for its manufacturing of commercial aircraft, but the company is also a leader in uncrewed vehicles. As an industrial stalwart, Boeing is well suited for more conservative investors less interested in exposing themselves to risk.
Boeing has drones suited for a variety of settings. The company has two uncrewed maritime vehicles: the Wave Glider, which operates on the ocean's surface, and the Echo Voyager, an underwater autonomous vehicle that can operate for months at a time.
In the wild blue yonder, Boeing is developing the MQ-25, an uncrewed aerial refueling vehicle, which is expected to begin operations in 2026.
In addition to the MQ-25, Boeing is developing the MQ-28. An uncrewed fighter jet, the MQ-28 incorporates AI and has a range of more than 2,000 nautical miles. Extending into the final frontier, Boeing has also developed the X-37B, an uncrewed vehicle that operates in low Earth orbit and is capable of flights lasting as long as 270 days.
It has been a turbulent few years for Boeing, but the company appears to be making progress towards flying right again. Through the first nine months of 2025, Boeing reported revenue of $65.5 billion compared to $51.3 billion during the same period in 2024. Boeing also narrowed its outflow of operating cash. Through the first three quarters of 2025, Boeing reported an operating cash flow of negative $266 million compared to negative $8.6 billion in the first three quarters of 2024. Another encouraging sign is that as of the end of the third quarter of 2025, Boeing had a backlog of $636 billion.
3. Northrop Grumman
NYSE: NOC
Key Data Points
Similar to Boeing, Northrop Grumman is a large defense contractor, although its drone offerings are more sizable. Plus, it offers investors the ability to generate some passive income with an investment.
Northrop Grumman manufactures the MQ-4C Triton, which is used by the United States and Australia to conduct reconnaissance operations over oceans and coastal areas. Capable of 24-hour continuous missions, the Triton has a flight range of 8,200 nautical miles.
The RQ-4 Global Hawk, on the other hand, can operate continuously for more than 30 hours. It has logged more than 320,000 hours of flight time since it commenced its operations in 2001 for the U.S. Air Force.
Depending on its use -- reconnaissance, target acquisition, or communications relay -- Northrop Grumman's Bat drones can be fitted with different fuel tanks and sensors. Rounding out the drones found in the company's drone fleet are the MQ-8B Fire Scout and the NATO Alliance Ground Surveillance (AGS).
Northrop Grumman characterizes the Fire Scout as the U.S. "Navy's next-generation autonomous helicopter." It has completed more than 16,600 hours in flight and is capable of autonomous takeoff and landing from ships and landing zones. The NATO AGS is a high-altitude, long-endurance uncrewed vehicle that 15 NATO forces operate to share intelligence with other NATO allies.
Northrop Grumman will be especially appealing for drone investors who are also dedicated to finding dividend stocks. The company has raised its distribution for 22 consecutive years. From 2013 through 2024, the dividend has increased at a 11.1% CAGR. Currently, Northrop Grumman stock offers a 1.7% forward dividend yield.
Drone ETFs
For drone investors looking for the broad exposure that exchange-traded funds (ETFs) provide, there are a few worthwhile options.
- iShares U.S. Aerospace & Defense ETF (ITA +0.15%): One of the largest defense ETFs available to investors, with $12.7 billion in net assets as of December 2025, the ETF counts GE Aerospace (GE +0.25%) and RTX (RTX +0.04%) as its two largest holdings, representing about weightings of 21.6% and 14.8%, respectively. The ETF has a moderately low expense ratio of 0.38%.
- Ark Autonomous Technology & Robotics ETF: This Cathie Wood option is an ideal choice for drone investors looking to balance the conservative nature of an ETF with the potential for growth. In addition to AeroVironment, the ETF includes Kratos Defense & Security Solutions (KTOS +0.94%), a leading drone manufacturer, among its top holdings with a 9.3% weighting. This ETF has a 0.75% expense ratio.
- The SPDR S&P Aerospace & Defense ETF (XAR +0.13%) is another compelling industrials ETF option with drone exposure. The ETF has 39 holdings, but there are several drone stocks among the top 10 largest positions, including Kratos, RTX, and Textron (TXT -0.42%), which produces drones for air- and sea-based operations, is another drone stock featured in the ETF. The SPDR S&P Aerospace & Defense ETF had $4.8 billion in assets under management in December 2025 and an expense ratio of 0.35%.
Categories of drone stocks
Before clicking the buy button on a drone stock, investors should recognize that there are several categories of drone stocks from which they can choose. For the most concentrated exposure, investors can choose a pure-play company like AeroVironment. Another drone stock opportunity is with a company -- such as Ambarella (AMBA -1.14%) or Nvidia (NVDA +2.92%) -- that supplies the components used in drones. Investors interested in less-extensive drone exposure, on the other hand, can choose a diversified aerospace & defense company, such as Boeing or Northrop Grumman.
Benefits and risks of investing in drone stocks
While investors may be enthused with the prospect of investing in drone stocks, it's imperative that they recognize not just the potential benefits but also the risks.
Here are some of the potential advantages of investing in drone stocks:
- These stocks have the potential for considerable growth since the drone market is expected to grow substantially.
- Portfolio diversification is a key element of any portfolio, and drone stocks might help provide some.
- A variety of industries are adopting drone solutions, which mitigates the risk of a downturn in an individual market.
Naturally, there are also some risks related to drone stock investments:
- It may take longer than expected for the drone market to grow.
- If there's a market downturn, drone makers may curb research and development (R&D) spending and fail to innovate.
- Governments may identify more compelling defense solutions than drones, impeding the growth of drone stocks.
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How to invest in drone stocks
Before investors take flight with a drone stock, there are a few simple steps they need to take in order to get started.
- Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Future outlook for the drone sector
From self-driving cars to streamlined, automatic workflows, the popularity of autonomous solutions is seen in a variety of businesses. It's unsurprising that the drone sector is expected to experience steady growth over the next few years. While military applications may be the most common association with drones, businesses are turning to drone deliveries to provide a premium service to customers, such as Amazon (AMZN +1.63%), for example, which is currently developing a drone delivery program dubbed Amazon Prime Air.
Even more bullish in its opinion of the drone market than IDTechEx, Grand View Research finds the global drone market size was valued at $73.1 billion in 2024 and projects it to climb to $163.6 billion by 2030 at a compound annual growth rate of 14.3% from 2025 to 2030.
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