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Buy 5 Drone Technology Stocks to Boost Your Portfolio Returns in 2026
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Key Takeaways
Lockheed Martin benefits from strong defense demand, F-35 production and rising global interest.
Analog Devices gains from AI, automation and EV demand, with strong growth and cash flow.
Jabil expands in AI data centers and diversified markets, backed by $500M manufacturing investment.
A drone, also called unmanned aerial vehicle (UAV), is a broad term that refers to an aircraft that operates autonomously or by remote control with no pilot on board. The technology has evolved over the years to graduate from basic civilian and military operations to highly advanced missions, making drones an indispensable tool in various industries.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Lockheed Martin Corp.
Lockheed Martin’s broad product offerings allow it to secure major defense contracts, which in turn boost its backlog count. LMT remains the largest U.S. defense contractor with a steady order flow from the Pentagon and other allies of the country.
Apart from enjoying a strong forte on the domestic front, LMT’s products are well-acclaimed in the international market. Increasing U.S. defense budget funding should boost its business. LMT continues to witness international interest in the Aegis Ballistic Missile Defense System (Aegis) from international customers, such as Japan, Spain, the Republic of Korea and Australia.
The production of F-35 jets is expected to continue for many years, given the government's current inventory target of 2,470 aircraft for the Air Force, Marine Corps and Navy by 2040. Moreover, the defense contractor expects its global fleet to reach more than 3,500. Consequently, one may expect LMT to witness more order inflows for F-35 in the coming days, which should significantly bolster its top line.
Lockheed Martin has an expected revenue and earnings growth rate of 5.5% and 29.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.01% in the last 30 days.
Northrop Grumman Corp.
Northrop Grumman boasts a solid presence in Defense and Cyber Security programs, with its product line being well-positioned in high-priority categories. NOC witnesses strong demand for its products across the globe. NOC boasts a strong financial position.
The current U.S. government’s inclination toward strengthening the nation’s defense system should benefit NOC. Foreign military sales also serve as a key growth catalyst for Northrop, with the company delivering its products and services to customers in 25 nations. NOC’s international sales totaled $5.99 billion in 2025, comprising 14% of total sales, and improving a solid 19.8% year over year.
Northrop Grumman has an expected revenue and earnings growth rate of 4.6% and 6.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.01% in the last 30 days.
Elbit Systems Ltd.
Elbit Systems is a worldwide leader in Night Vision Goggles Head-Up Displays (NVG-HUD). They are a major supplier to the U.S Army and U.S. Marine Corps of Night Vision Head-Up Display systems for use in various types of helicopters.
ESLT is engaged in a wide range of defense-related airborne, ground and command, control and communications programs throughout the world. ESLT’s focus is on the upgrading of existing military platforms and developing new technologies for defense applications.
ESLT operates through five segments: Aerospace; C4I and Cyber; Intelligence, Surveillance, Target Acquisition and Reconnaissance and Electronic Warfare; Land; and Elbit Systems of America.
Elbit Systems has an expected revenue and earnings growth rate of 14.3% and 21.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% in the last seven days.
Analog Devices Inc.
Analog Devices’ latest quarterly results demonstrate broad-based recovery, margin resilience and strong free cash flow generation. Secular growth drivers in automation, AI infrastructure and automotive electrification provide multi-year tailwinds.
ADI’s robust top-line performance was primarily driven by strong growth in its industrial, aerospace and defense businesses, fueled by demand for AI chip infrastructure buildout, automated test equipment, and a rebound in automation and healthcare markets.
Strong momentum across the electric vehicle space on ADI’s robust Battery Management System solutions remains a tailwind. ADI’s strong investments in technology and business innovation are contributing well.
ADI’s hybrid manufacturing strategy provides a significant competitive advantage by balancing internal production capacity with external partnerships. This approach enhances supply-chain flexibility and reduces geopolitical risk, ensuring consistent product availability for customers.
By the end of 2026 or early 2027, 95% of ADI’s products will have at least dual sourcing, reducing reliance on any single geography. Key partnerships and internal fab investments position ADI for sustainable growth. ADI’s strong cash flow generation capability and aggressive shareholder return policies are other positives.
Analog Devices has an expected revenue and earnings growth rate of 26.3% and 46.1%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% in the last seven days.
Jabil Inc.
Jabil is one of the largest global suppliers of electronics manufacturing services solutions. JBL offers electronics design, production, product management and after-market services to customers in more than a dozen industry verticals.
JBL has been benefiting immensely from healthy momentum in capital equipment, AI-powered data center infrastructure, cloud, and digital commerce business verticals. Its focus on end-market and product diversification is a key catalyst. Jabil’s target that “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable.
JBL’s focus on end-market and product diversification is a key catalyst. JBL’s top-line is expected to benefit from strength in AI data center infrastructure, capital equipment and warehouse automation markets.
JBL is set to invest $500 million over the next several years to expand its manufacturing capabilities for the AI data center vertical. This will significantly boost the company’s position in the AI hardware supply chain. JBL’s unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply-chain insights and global product management expertise have put it in good standing.
Massive application of generative AI is set to drastically increase the efficiency of JBL’s automated optical inspection machines for the automation industry. A large-scale portfolio of business sectors offers JBL a high degree of resiliency during times of macroeconomic and geopolitical disruption.
An extensive global footprint is further strengthened by a centralized procurement process, which, coupled with a single Enterprise Resource Planning system, aids customers with end-to-end supply-chain visibility. A worldwide connected factory network enables JBL to scale up production per the evolving market dynamics.
Management’s focus on improving working capital management and integration of sophisticated AI and ML (machine learning) capabilities to enhance the efficiency of its internal processes is a major tailwind.
Jabil is expected to gain from the rapid adoption of 5G wireless and cloud computing in the long run. The company is benefiting from solid demand in key end markets together with excellent operational execution and skillful management of supply-chain dynamics.
The Johnson & Johnson deal is a major growth driver for Jabil. A large-scale portfolio of business sectors offers Jabil a high degree of resiliency during times of macroeconomic and geopolitical disruption.
Jabil has an expected revenue and earnings growth rate of 14.2% and 26.2%, respectively, for the current year (ending August 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 3.1% in the last 30 days.
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Buy 5 Drone Technology Stocks to Boost Your Portfolio Returns in 2026
Key Takeaways
A drone, also called unmanned aerial vehicle (UAV), is a broad term that refers to an aircraft that operates autonomously or by remote control with no pilot on board. The technology has evolved over the years to graduate from basic civilian and military operations to highly advanced missions, making drones an indispensable tool in various industries.
We have narrowed our search to three drone-technology-centric bigwigs that provide the hardware and software to operate drones. These stocks will enrich your portfolio in 2026. These companies are: Lockheed Martin Corp. (LMT - Free Report) , Northrop Grumman Corp. (NOC - Free Report) , Elbit Systems Ltd. (ESLT - Free Report) , Analog Devices Inc. (ADI - Free Report) and Jabil Inc. (JBL - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Lockheed Martin Corp.
Lockheed Martin’s broad product offerings allow it to secure major defense contracts, which in turn boost its backlog count. LMT remains the largest U.S. defense contractor with a steady order flow from the Pentagon and other allies of the country.
Apart from enjoying a strong forte on the domestic front, LMT’s products are well-acclaimed in the international market. Increasing U.S. defense budget funding should boost its business. LMT continues to witness international interest in the Aegis Ballistic Missile Defense System (Aegis) from international customers, such as Japan, Spain, the Republic of Korea and Australia.
The production of F-35 jets is expected to continue for many years, given the government's current inventory target of 2,470 aircraft for the Air Force, Marine Corps and Navy by 2040. Moreover, the defense contractor expects its global fleet to reach more than 3,500. Consequently, one may expect LMT to witness more order inflows for F-35 in the coming days, which should significantly bolster its top line.
Lockheed Martin has an expected revenue and earnings growth rate of 5.5% and 29.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.01% in the last 30 days.
Northrop Grumman Corp.
Northrop Grumman boasts a solid presence in Defense and Cyber Security programs, with its product line being well-positioned in high-priority categories. NOC witnesses strong demand for its products across the globe. NOC boasts a strong financial position.
The current U.S. government’s inclination toward strengthening the nation’s defense system should benefit NOC. Foreign military sales also serve as a key growth catalyst for Northrop, with the company delivering its products and services to customers in 25 nations. NOC’s international sales totaled $5.99 billion in 2025, comprising 14% of total sales, and improving a solid 19.8% year over year.
Northrop Grumman has an expected revenue and earnings growth rate of 4.6% and 6.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.01% in the last 30 days.
Elbit Systems Ltd.
Elbit Systems is a worldwide leader in Night Vision Goggles Head-Up Displays (NVG-HUD). They are a major supplier to the U.S Army and U.S. Marine Corps of Night Vision Head-Up Display systems for use in various types of helicopters.
ESLT is engaged in a wide range of defense-related airborne, ground and command, control and communications programs throughout the world. ESLT’s focus is on the upgrading of existing military platforms and developing new technologies for defense applications.
ESLT operates through five segments: Aerospace; C4I and Cyber; Intelligence, Surveillance, Target Acquisition and Reconnaissance and Electronic Warfare; Land; and Elbit Systems of America.
Elbit Systems has an expected revenue and earnings growth rate of 14.3% and 21.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.9% in the last seven days.
Analog Devices Inc.
Analog Devices’ latest quarterly results demonstrate broad-based recovery, margin resilience and strong free cash flow generation. Secular growth drivers in automation, AI infrastructure and automotive electrification provide multi-year tailwinds.
ADI’s robust top-line performance was primarily driven by strong growth in its industrial, aerospace and defense businesses, fueled by demand for AI chip infrastructure buildout, automated test equipment, and a rebound in automation and healthcare markets.
Strong momentum across the electric vehicle space on ADI’s robust Battery Management System solutions remains a tailwind. ADI’s strong investments in technology and business innovation are contributing well.
ADI’s hybrid manufacturing strategy provides a significant competitive advantage by balancing internal production capacity with external partnerships. This approach enhances supply-chain flexibility and reduces geopolitical risk, ensuring consistent product availability for customers.
By the end of 2026 or early 2027, 95% of ADI’s products will have at least dual sourcing, reducing reliance on any single geography. Key partnerships and internal fab investments position ADI for sustainable growth. ADI’s strong cash flow generation capability and aggressive shareholder return policies are other positives.
Analog Devices has an expected revenue and earnings growth rate of 26.3% and 46.1%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% in the last seven days.
Jabil Inc.
Jabil is one of the largest global suppliers of electronics manufacturing services solutions. JBL offers electronics design, production, product management and after-market services to customers in more than a dozen industry verticals.
JBL has been benefiting immensely from healthy momentum in capital equipment, AI-powered data center infrastructure, cloud, and digital commerce business verticals. Its focus on end-market and product diversification is a key catalyst. Jabil’s target that “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable.
JBL’s focus on end-market and product diversification is a key catalyst. JBL’s top-line is expected to benefit from strength in AI data center infrastructure, capital equipment and warehouse automation markets.
JBL is set to invest $500 million over the next several years to expand its manufacturing capabilities for the AI data center vertical. This will significantly boost the company’s position in the AI hardware supply chain. JBL’s unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply-chain insights and global product management expertise have put it in good standing.
Massive application of generative AI is set to drastically increase the efficiency of JBL’s automated optical inspection machines for the automation industry. A large-scale portfolio of business sectors offers JBL a high degree of resiliency during times of macroeconomic and geopolitical disruption.
An extensive global footprint is further strengthened by a centralized procurement process, which, coupled with a single Enterprise Resource Planning system, aids customers with end-to-end supply-chain visibility. A worldwide connected factory network enables JBL to scale up production per the evolving market dynamics.
Management’s focus on improving working capital management and integration of sophisticated AI and ML (machine learning) capabilities to enhance the efficiency of its internal processes is a major tailwind.
Jabil is expected to gain from the rapid adoption of 5G wireless and cloud computing in the long run. The company is benefiting from solid demand in key end markets together with excellent operational execution and skillful management of supply-chain dynamics.
The Johnson & Johnson deal is a major growth driver for Jabil. A large-scale portfolio of business sectors offers Jabil a high degree of resiliency during times of macroeconomic and geopolitical disruption.
Jabil has an expected revenue and earnings growth rate of 14.2% and 26.2%, respectively, for the current year (ending August 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 3.1% in the last 30 days.