The stock market has been obsessed with artificial intelligence (AI) software for about a year now. Investors have chased algorithms, chatbots, and large language models, often overlooking the physical hardware required to execute modern technology in the real world. However, a massive shift is occurring in the defense sector. The demand for tangible, autonomous hardware is beginning to outpace the hype.
On Jan. 13, 2026, Red Cat Holdings (NASDAQ: RCAT) released preliminary financial results that signaled a dramatic change in its operational status. The company expects revenue for the fourth quarter ended Dec. 31, 2025, to land between $24 million and $26.5 million.
