Defense Stocks Ignite as $900 Billion Pentagon Budget Triggers AI Tech Revolution

Issued on behalf of VisionWave Holdings, Inc.

Equity Insider News Commentary

VANCOUVER , BC, Jan. 27, 2026 /PRNewswire/ — The 2026 defense cycle is officially underway with a massive $900.6 billion Pentagon budget authorization^[1]. This tidal wave of capital is forcing a total overhaul of electronic warfare and sensing tech as modern threats become harder to detect. The electronic warfare market is projected to hit $20.01 billion this year^[2]. This surge is driven by a desperate need for AI-powered signal processing that can see what legacy systems miss. This massive structural shift puts a bright spotlight on VisionWave Holdings, Inc. (NASDAQ: VWAV), Leonardo DRS (NASDAQ: DRS), L3Harris Technologies (NYSE: LHX), Mercury Systems (NASDAQ: MRCY), and Cloudastructure (NASDAQ: CSAI).

The Missile Defense Agency is backing this play with a $151 billion SHIELD contract vehicle that demands the immediate integration of edge computing^[3]. In a world where every second counts, the $586.37 billion homeland security market is pivoting toward AI-enabled platforms that can collapse decision cycles from minutes to mere seconds^[4]. This move isn’t just about safety; it’s about establishing a massive technical advantage through autonomous response execution. For the smart money, the real ROI is in the platforms that can process data faster than the enemy can move.

VisionWave Holdings Inc. (NASDAQ: VWAV) has entered into a definitive strategic exchange agreement with SaverOne 2014 Ltd. (NASDAQ: SVRE) in a three-stage transaction valued at $7.0 million in staged equity consideration. Under the agreement, VisionWave may acquire approximately 51% of the Israeli technology company on a fully diluted basis, subject to milestone achievement, regulatory approvals, and shareholder approval from SaverOne. Both companies’ boards unanimously approved the transaction following an independent fairness opinion from BDO Consulting Group.

The partnership aims to integrate VisionWave’s proprietary radio-frequency sensing and AI-driven analytics technologies into SaverOne’s existing VRU (Vulnerable Road User) platform. The combined system is designed to address concealed, obscured, and non-line-of-sight threats in environments where optical and LiDAR-only sensing systems face limitations, including occlusion, cluttered terrain, adverse weather, and complex infrastructure settings. Management currently estimates an RF-enhanced, commercially deployable solution addressing identified concealed-threat scenarios could be demonstrated during the 2026 calendar year, subject to continued development, testing, and validation.

SaverOne will serve as the core operating platform for specified RF-based defense and security applications, supported by a non-exclusive global license to VisionWave’s RF sensing technologies. The unified platform intends to support detection of concealed threats, counter-drone sensing, perimeter and infrastructure protection, battlefield situational awareness, and RF-based threat classification in complex environments across military, homeland security, and critical infrastructure deployments.

VisionWave recently acquired the qSpeed computational acceleration engine, independently valued at $99.6 million by BDO Consulting Group. This technology addresses decision latency between threat detection and response execution by collapsing computation cycles from minutes into seconds. The system prioritizes decision-critical computations first, enabling rapid initial conclusions that continuously refine themselves as additional data becomes available. The company has announced initial progress integrating qSpeed across its WaveStrike RF-enabled fire control systems and Argus counter-drone technology.

The company’s intellectual property position includes U.S. Patent No. 12,499,578, which secures enforceable protection for the radio-frequency sensing and artificial intelligence architecture powering both Argus and its SkyWeave high-frequency communications backbone.

VisionWave is executing strategic expansion into Southern Europe through its Solar Drone Ltd. subsidiary, having secured follow-on hardware orders and distribution agreements covering Italy and Spain for critical infrastructure maintenance markets. The company’s universal Adaptation Kit enables integration of heavy-duty payloads exceeding 200 pounds into third-party drone fleets. VisionWave plans to invest up to $10 million in U.S.-based development over the next 6 to 12 months to accelerate commercialization timelines.

CONTINUED… Read this and more news for VisionWave Holdings at:
https://equity-insider.com/2025/09/25/the-ai-defense-technology-developments-on-the-rise-in-2025-26/

Leonardo DRS (NASDAQ: DRS) announced a subcontract award to provide Infrared Mission Payloads supporting the Space Development Agency’s Tracking Layer Tranche 3, a component of the U.S. military’s advanced missile defense program. As space-based mission payload provider, DRS will design, build, integrate, and test advanced infrared mission payloads supporting TRKT3’s accelerated capability to provide global detection, warning, and tracking of ballistic missiles and hypersonic weapons with precision fire-control sensing data for missile interceptors.

“This award recognizes our innovative best-in-class technology, and continued investment in advanced space-based capabilities for programs such as the TRKT3 mission,” said John Baylouny, DRS’ Chief Executive Officer. “These investments allow our people to push the boundaries of advanced sensing and space payload manufacturing to support a wide range of national security priorities.”

Leonardo DRS is a leading provider of multi-domain advanced cooled and uncooled infrared systems for the U.S. government and allied nations with extensive installed mission capabilities across ground, sea, air, and space domains. Advanced sensing mission technology is a key strategic focus as DRS integrates industry-leading multi-domain sensing capabilities, secure communications, and laser technologies for Golden Dome, Counter-UAS, autonomous maritime fleet protection, and ground combat systems.

L3Harris Technologies (NYSE: LHX) delivered the first MC-55A aircraft to the U.S. Air Force following integration and mission system testing as part of Australia’s new Peregrine fleet acquisition. The Royal Australian Air Force is acquiring missionized business jets through a U.S. foreign military sales program providing airborne electronic warfare and intelligence, surveillance and reconnaissance capabilities supporting multi-domain operations for Australia and coalition forces.

“The MC-55A Peregrine will be a force multiplier in delivering critical data for long-range targeting, regional deployments and effective mission planning,” said Jason Lambert, President, Intelligence, Surveillance and Reconnaissance, Space and Mission Systems, L3Harris. “The specialized aircraft will give the RAAF information superiority and serve as strategic assets for future Australian Defence Force operations.”

Follow-on aircraft will remain in the Air Force’s possession while supporting RAAF training and pre-delivery requirements. L3Harris has established a field service team in Australia to work alongside local industry partners for in-country support with ongoing software and hardware upgrades ensuring Peregrine stays ready to meet evolving threats and future mission needs.

Mercury Systems (NASDAQ: MRCY) received contract awards totaling more than $60 million for work associated with two critical U.S. space and strategic weapons programs, including a development contract extension for a large strategic weapons program leveraging the company’s expertise in strategic radiation-hardened data and signal processing. Initially awarded in 2023, Mercury’s development work will now continue through 2031 and include delivery of additional flight-testing units.

“Mercury is proud to support these critical U.S. national security missions,” said Roya Montakhab, Senior Vice President of Integrated Processing Solutions at Mercury Systems. “The Mercury Processing Platform features unique capabilities that deliver enhanced performance and resiliency for space and strategic weapons programs, and these awards highlight the increasing demand for our technology in these domains.”

Mercury was also awarded a new contract from an innovative space systems prime contractor to produce subsystems for a U.S. national security space program. This is the second customer to adopt Mercury’s radiation-tolerant wideband storage and processing subsystem featuring AMD Versal AI Core series FPGAs and 4.5 terabyte data storage drives recently released into production.

Cloudastructure (NASDAQ: CSAI) announced successful integration of autonomous drone technology into its award-winning mobile surveillance trailer, extending the platform’s proven security capabilities into aerial operations. The integration enables remote guards to deploy and operate autonomous drones directly from mobile surveillance trailers to secure large-scale industrial, logistics, distribution, and commercial properties with enhanced perimeter protection.

“By integrating autonomous drones with Cloudastructure’s AI platform, we’ve extended situational awareness into the air, providing security teams with a faster, broader, and more flexible way to protect high-value assets,” said Kevin Mack, Chief Technology Officer at Flex Security.

The platform strategy positions Cloudastructure to become the central intelligence layer across all security hardware including drones, mobile surveillance trailers, robotics, and electric security fencing. This hardware-agnostic approach transforms disparate security assets into a cohesive AI-powered security ecosystem while enabling capital-efficient growth through strategic partnerships and expanding addressable markets beyond traditional camera-based surveillance.

Article Sources: https://equity-insider.com/2025/09/25/the-ai-defense-technology-developments-on-the-rise-in-2025-26/

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SOURCES:

1.   https://www.govconwire.com/articles/trump-fy26-ndaa-acquisition-reforms

2.   https://natlawreview.com/press-releases/electronic-warfare-systems-market-analysis-future-demand-and-leading-key

3.   https://news.satnews.com/2026/01/15/mda-adds-340-vendors-to-151-billion-shield-enterprise-in-third-major-tranche/

4.   https://www.globenewswire.com/news-release/2026/01/20/3222048/28124/en/Homeland-Security-Market-Report-2026-753-7-Bn-Opportunities-Trends-Competitive-Landscape-Strategies-and-Forecasts-2020-2025-2025-2030F-2035F.html

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