DroneShield Ltd (ASX: DRO) shares are down around 1% on Thursday.

The move comes despite a fresh trading update from the counter-drone technology company, although the broader market is also under pressure. The S&P/ASX 200 Index (ASX: XJO) is currently down around 1.3%.

So, has today’s announcement changed my view on DroneShield shares?

What did DroneShield announce?

DroneShield provided investors with a few updates this morning.

The company said FY26 committed revenue has now reached $251 million, up from $240 million reported on 21 August. This puts it inside management’s existing FY26 revenue outlook of $250 million to $270 million. DroneShield also has $46 million of committed revenue for FY27 and beyond.

I think the important part is the continued conversion of demand into actual orders.

DroneShield has spoken for some time about the growing need for counter-drone technology. Seeing more of that demand turn into contracted revenue gives me greater confidence that the opportunity is translating into real sales.

The company also received the first order for its newly released artificial intelligence-enabled RfRecon product. The order is not material financially, but the hardware will be deployed to an existing Western European military customer before the end of 2026.

DroneShield also announced that Rebecca Lowde will become chief financial officer in November. She brings experience from MYOB, Afterpay, Salmat, and Bravura Solutions Ltd (ASX: BVS), which could be valuable as DroneShield becomes a much larger global business.

Why I still think DroneShield shares are a buy

I think today’s announcement adds another piece of evidence that DroneShield is continuing to scale.

The company operates in a market where governments and military organisations are becoming increasingly concerned about the threat posed by drones. DroneShield develops technology to detect, track, identify, and defeat those threats across fixed locations and mobile operations.

What I like is the potential for that demand to continue growing across multiple countries.

DroneShield is also expanding its product range rather than relying on one piece of hardware. The first RfRecon order is a small example, but successful deployment could potentially lead to further orders from existing and new customers.

At $1.71, the shares are also far below the highs reached previously and much closer to their lows.

I think that gives patient investors a more reasonable entry point into a company that still has substantial growth potential.

There is still plenty of risk

DroneShield remains one of the higher-risk ASX shares I would consider buying.

Defence contracts can be large but irregular, and revenue can move around considerably depending on when orders arrive.

The company also needs to prove that rapidly increasing sales can translate into much larger and more consistent profits over time.

That means I would probably keep any investment relatively small rather than making DroneShield a major portfolio position.

Foolish takeaway

Today’s trading update gives me another reason to remain positive on DroneShield.

Committed FY26 revenue has moved above $250 million, while the first RfRecon order shows customers are beginning to adopt another product from the company’s expanding technology range.

At current prices, I still think DroneShield shares are a buy for investors comfortable with the higher level of risk.

The post Should I buy DroneShield shares following today’s trading update? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bravura Solutions and DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

GrainCorp Ltd (ASX: GNC) shares are back in focus on Thursday after the company released a new trading update.

The agribusiness stock is down 3.03% to $6.73 at the time of writing.

That comes despite GrainCorp keeping its FY26 earnings guidance unchanged.

But there was one part of the update that investors clearly didn’t like.

What’s changed?

GrainCorp said its transformation program is still delivering savings, with around $12 million of benefits expected in FY26.

That’s ahead of its previous target, while the longer-term goal of adding $20 million to $30 million to through-the-cycle EBITDA by the end of FY28 remains unchanged.

However, the technology side of the program has been delayed.

The first release, which covers the Nutrition and Energy business, is now expected to go live in the second quarter of 2027. It had previously been scheduled for the second half of 2026.

GrainCorp said the extra time would “reduce implementation risk”, but it comes with a price.

FY27 spending on ‘Release 1’ is now expected to be around $30 million to $35 million, an increase of roughly $30 million from the previous estimate.

80 roles affected

GrainCorp also used the update to announce changes to its Agribusiness operating model.

The company said it is simplifying the way the business operates across its east coast network and corporate support teams, with around 80 roles affected.

GrainCorp expects to recognise around $5 million in restructuring costs in FY26.

Despite those extra costs, the company has kept its FY26 earnings guidance unchanged.

Underlying EBITDA is still expected to come in around the midpoint of its $200 million to $240 million range.

Underlying NPAT is forecast between $20 million and $50 million, including the $5 million restructuring cost.

Crop outlook gives investors some good news

The crop outlook was one positive in Thursday’s update.

GrainCorp said growing conditions remain supportive across NSW and Victoria, although conditions have been drier in Queensland.

Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) now expects the east coast winter crop to reach 26.6 million tonnes, around 12% higher than its previous forecast.

GrainCorp also said higher global commodity prices could create more export opportunities during the year.

That should provide some support as the company heads into the upcoming harvest.

Foolish takeaway

GrainCorp shares had rallied strongly before today, climbing around 23% over the past month. They are still down roughly 6% in 2026 and 22% over 12 months.

Before today’s announcement, TipRanks showed 3 buy ratings and 2 holds, with an average price target of $6.85.

That’s only slightly above the current share price, although those targets could change after brokers work through today’s update.

GrainCorp reports its full-year results on 12 November.

The post GrainCorp shares fall after surprise $30 million cost increase appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) shares have delivered strong returns for shareholders in recent years.

The bank still offers an attractive dividend and remains one of the largest financial institutions in Australia.

But if I were investing fresh money today, I think there are two ASX shares with better prospects for long-term total returns.

Why I am cautious on Westpac

My issue with Westpac is not the quality of the bank. It is the amount of growth I can see from here.

Consensus forecasts point to only modest earnings per share growth over the next couple of years, while the dividend is expected to remain broadly flat.

At the same time, Westpac operates in a highly competitive mortgage and deposit market. Winning more home loans does not necessarily translate into strong profit growth if margins are being squeezed in the process.

That leaves me wondering where a substantial increase in shareholder returns would come from.

Macquarie Group Ltd (ASX: MQG)

Macquarie would be one of my alternatives to Westpac shares. Its opportunity is much broader than traditional Australian banking.

Macquarie operates across asset management, commodities, infrastructure, energy, financial markets, and banking. That gives the group exposure to investment trends happening around the world.

I particularly like its ability to deploy capital into areas such as infrastructure, renewable energy, and transport when attractive opportunities appear.

Earnings can be uneven from year to year, and Macquarie will always be influenced by market conditions.

But over a longer timeframe, I think the company has more ways to grow than Westpac.

If Macquarie continues expanding its global businesses and finding attractive places to invest, I can see earnings becoming considerably larger over the next decade.

ResMed Inc. (ASX: RMD)

ResMed is the other ASX share I would choose ahead of Westpac.

The company develops devices, masks, and software for sleep apnoea and respiratory care.

What I like is how much of the potential market remains untreated.

More than one billion people globally are estimated to have sleep apnoea, yet diagnosis and treatment rates remain relatively low. That leaves ResMed with a substantial pool of potential patients still to reach.

The business also benefits after a patient starts treatment. Masks and other accessories need replacing over time, giving ResMed recurring revenue alongside sales to new patients.

Its recent decision to sell the MatrixCare software business should also allow management to concentrate more closely on its core sleep and respiratory operations.

I think that combination of a large underserved market, recurring demand, and continued innovation gives ResMed a long runway.

Foolish takeaway

Westpac shares could still be a sensible choice for investors prioritising dividends.

But I think its future returns are likely to rely more heavily on income and modest earnings growth.

Macquarie and ResMed give me clearer opportunities for the underlying businesses to become substantially larger over time.

For that reason, I would back both to deliver stronger total returns than Westpac over the long term.

The post 2 ASX shares I think could return more than Westpac appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.