Ondas shares drop 8% despite raising 2026 revenue outlook due to high valuation and acquisition concerns.

Ondas Holdings' stock fell 8% after its Q2 report, even though the company raised its 2026 revenue guidance to $525-$550 million, above Wall Street expectations. The decline is attributed to the stock's high valuation with an EV/Revenue of 40 and forward P/S over 10, plus concerns about integrating six acquisitions made in 2026. Despite strong growth projections for 2027 and beyond, the market reaction reflects caution over scaling challenges and recent price gains. Peer drone companies showed milder declines, indicating Ondas' drop is more about its specific valuation and acquisition complexities.