Draganfly Stock Surges 147.6% in a Year: Time to Hold or Book Profits?

Draganfly’s DPRO shares have risen 147.6% over the past year, outperforming the Zacks Aerospace-Defense industry’s growth of 37.2%. The company benefits from drone solutions, software, and AI systems serving the public safety, agriculture, industrial inspections, security, mapping and surveying markets.

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Other defense stocks like AeroVironment, Inc. AVAV and Kratos Defense & Security Solutions, Inc. KTOS benefit from the rising adoption of drone warfare and next-generation defense technologies. Shares of AeroVironment and Kratos Defense have increased 66.5% and 162.7%, respectively, over the past year.

Considering DPRO’s outperformance compared with its industry, investors might be left wondering if this is a good time to add the stock to their portfolio. Let's examine the factors that contributed to the share price gain and assess the stock's investment prospects to make an informed decision.

Factors Acting in Favor of DPRO Stock

Draganfly is gaining momentum from rising demand in the defense industry, as increasing participation in U.S. and allied military initiatives broadens its market reach and supports consistent, high-value revenue streams.

Its advanced product portfolio, including long-endurance, heavy-payload drones and AI-enabled swarm capabilities, sets it apart in critical use cases like surveillance, demining and emergency response.

Draganfly’s 2026 priorities are centered on scaling and strengthening its core business while positioning for long-term growth. The company aims to ramp up production and delivery capacity to meet rising demand, while building a domestic, NDAA-compliant supply chain using its industry relationships and deep UAV experience. DPRO is also focused on expanding ties with government agencies and top-tier defense contractors through partnerships and integration channels, which can drive larger and more consistent contracts. Draganfly plans to enhance its technology through continued hardware and software development, pursue targeted acquisitions that align with its strategy, and manage capital prudently to support efficient, disciplined growth.

On March 24, 2026, the company announced its fourth-quarter results. Revenues for the quarter were up 18.5% year over year, while total 2025 revenues increased 17.8%. During the fourth quarter, the company secured a contract with U.S. Air Force Special Operations Command units, in partnership with DelMar Aerospace, to deliver its Flex FPV drone platform along with specialized training, reinforcing Draganfly’s position in defense-focused UAV solutions.

DPRO has demonstrated growing traction in both domestic and international defense markets through key deployments and partnerships. Its successful use of the Outrider drone on the southern U.S. border, in collaboration with law enforcement, showcased real-world effectiveness and sparked interest from multiple agencies. Internationally, the company secured a military order for its Commander 3XL drones, highlighting increasing global demand for its defense-grade technology.

Estimates for DPRO Stock

The Zacks Consensus Estimate for Draganfly’s 2026 earnings per share (EPS) has risen 8.51% over the past 60 days.

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The Zacks Consensus Estimate for AeroVironment’s fiscal 2026 EPS has decreased 12.68% over the past 60 days. The Zacks Consensus Estimate for Kratos Defense’s 2026 EPS has increased 5.48% over the same time frame.

DPRO’s Earnings Surprise History

The company beat on earnings in three of the trailing four quarters and missed in one, delivering an average negative surprise of 8.98%.

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DPRO’s Debt Position

Currently, the company’s total debt to capital is nil compared with the industry’s average of 48.73%.

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Draganfly’s time-to-interest earned ratio at the end of the fourth quarter of 2025 was 22.1. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

DPRO Stock Trades at a Discount

In terms of valuation, DPRO’s forward 12-month price-to-sales (P/S) is 1.45X, a discount to the industry’s average of 2.44X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with its peer group.

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What Should an Investor Do Now?

Draganfly is capitalizing on rising defense demand with advanced drone technology, expanding military relationships, and proven real-world deployments that are driving growing interest across domestic and international markets. It is scaling operations, strengthening its supply chain and partnerships, and investing in innovation and disciplined growth to support long-term expansion in defense-focused UAV solutions.

It is advisable for new investors to wait and look for a better entry point. Existing investors may consider holding this Zacks Rank #3 (Hold) stock, as improving earnings estimates and a debt-free balance sheet provide underlying support.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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AeroVironment, Inc. (AVAV): Free Stock Analysis Report

Kratos Defense & Security Solutions, Inc. (KTOS): Free Stock Analysis Report

Draganfly Inc. (DPRO): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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