When I look ahead to 2026, I am seeking businesses that can continue to move forward for very different reasons, even if markets are uneven along the way.
Two ASX shares that stand out to me on that basis are CSL Ltd (ASX: CSL) and DroneShield Ltd (ASX: DRO). They operate in completely different industries, but I think they both offer compelling long-term investment cases as we move through 2026.
Why CSL still looks attractive
CSL has been going through a rough patch, but it remains one of the highest-quality businesses on the ASX.
The biotech operates in plasma therapies and vaccines, areas where demand is driven by medical necessity rather than economic conditions. That makes revenue more resilient than in many other sectors, particularly during periods of uncertainty.
CSL also benefits from scale and expertise that are difficult to replicate. Its global plasma collection network, manufacturing capabilities, and ongoing investment in research and development create high barriers to entry. These advantages help support long-term earnings growth, even if short-term results fluctuate.
Another reason I am comfortable with CSL in 2026 is its long-term mindset. Management continues to reinvest heavily in the business, prioritising sustainable growth over short-term optics. For investors willing to be patient, that approach has historically paid off.
CSL shares are not always cheap, and they can go through periods of underperformance. But for me, that volatility is a feature of owning a high-quality global company, not a reason to avoid it.
DroneShield offers a different kind of opportunity
DroneShield sits at the opposite end of the risk spectrum, but that is part of its appeal.
The company specialises in counter-drone technology, a market that has become increasingly important for defence, government, and the protection of critical infrastructure. The use of drones is expanding rapidly, and with it comes a growing need to detect, track, and neutralise unauthorised threats.
DroneShield’s revenue can be lumpy due to contract timing, which makes the share price volatile. However, the underlying demand drivers are structural rather than cyclical. Governments and defence agencies do not switch off security needs when conditions become challenging. In fact, they are dedicating more and more funding to counter-drone technology each year.
What makes DroneShield interesting for 2026 is that it remains relatively early in its growth journey. As the company builds its customer base and continues to refine its technology, there is potential for meaningful upside if execution remains strong.
Why I am comfortable owning both
CSL and DroneShield serve very different roles in a portfolio.
CSL provides exposure to a global healthcare leader with resilient demand and a long track record of value creation. DroneShield offers exposure to a niche defence technology with significant growth potential but higher risk.
Together, they balance each other. One offers stability and consistency. The other offers optional upside tied to a rapidly evolving security landscape.
Foolish Takeaway
No stock is without risk, and 2026 will no doubt bring its own challenges.
But CSL and DroneShield each have characteristics that make them appealing to me as long-term investments.
The post Why I think CSL and DroneShield shares are buys for 2026 appeared first on The Motley Fool Australia.
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More reading
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Motley Fool contributor Grace Alvino has positions in CSL and DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and DroneShield. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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