DroneShield Ltd (ASX: DRO) shares have had a rough year.

The stock is down almost 50% since the start of 2026, even though the underlying business is still growing strongly.

For patient investors comfortable with plenty of volatility, I think that disconnect is becoming attractive.

Growth is still there

DroneShield’s latest half-year result was a little softer than I had hoped in some areas, particularly given the expectations that had built around the company.

But I do not think the bigger picture has changed.

First-half revenue reached $125.8 million, up 74% on the prior corresponding period. Recurring revenue also grew strongly, although it remains a relatively small part of the overall business.

That tells me demand for DroneShield’s counter-drone technology is still expanding quickly.

The company operates in a market that has become much more important in recent years. Drones are playing a growing role in modern warfare, while governments are also looking for better ways to protect military bases, airports, infrastructure, and other sensitive locations.

I think spending on counter-drone technology could remain elevated for a long time.

I am looking much further ahead

The main reason I would consider buying after the fall is that I think DroneShield could be a considerably larger company in 10 years.

It is still building out manufacturing capacity, expanding internationally, and investing in new hardware and software.

That is important because counter-drone technology will not stand still. Threats will keep changing, so customers will need systems that can be upgraded and improved rather than equipment that quickly becomes outdated.

DroneShield has spent years specialising in this field, and I think that focus gives it a chance to remain relevant as the market develops.

If it keeps winning larger contracts and builds deeper relationships with defence and security customers, today’s business could eventually look quite small.

The share price will probably remain volatile

I would not treat the 50% decline as proof that DroneShield shares are automatically cheap.

DroneShield remains a high-risk growth investment and trades on a very high P/E ratio.

Defence contracts can arrive unevenly, procurement processes can take longer than expected, and competition is increasing as more companies target the counter-drone market.

The company is also investing heavily for future growth, which means results may not progress neatly from one period to the next.

That is why I would keep any position relatively small and only invest money I was prepared to leave in the shares through potentially sharp moves in either direction.

Foolish takeaway

Yes, I think DroneShield shares are worth considering after falling around 50% in 2026.

The latest performance was not perfect, but the company is still delivering strong growth in a market with substantial long-term potential.

For investors willing to ride out the volatility, I think the current weakness could prove to be an opportunity if DroneShield becomes the much larger defence technology business I believe it can be over the next decade.

The post Are DroneShield shares a buy after dropping almost 50% in 2026? 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 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.

The Dicker Data Ltd (ASX: DDR) share price is in focus today after the company reported a strong H1 FY26, with gross revenue climbing 14.2% to $2,100.9 million and net profit after tax up 54.1% to $60.7 million.

What did Dicker Data report?

• Gross revenue reached $2,100.9 million, up 14.2% versus the prior corresponding period (pcp)
• Gross profit increased 23.0% to $205.6 million, with gross profit margin at 9.8%
• EBITDA rose 37.3% to $103.5 million
• Net operating profit before tax grew 50.1% to $86.4 million
• Net profit after tax jumped 54.1% to $60.7 million
• Recurring gross software sales up 20.7% to $600 million
• FY26 guidance: Gross revenue of $4.3–$4.4 billion and PBT of $162–$165 million

What else do investors need to know?

Australian operations drove much of the growth, with gross revenue up 18.3% to $1,831.5 million and gross profit rising 29.0%. This result helped offset softer trading and lower profit in New Zealand, where gross revenue was down 7.6% amid currency headwinds.

Software and Advanced Solutions were standout performers, growing 18% and 16.9% respectively, thanks to continued demand in cloud, cybersecurity, AI infrastructure and data centre investments. Dicker Data also expanded its vendor portfolio, signing new partners in areas like AI, cybersecurity, and data management to help meet evolving technology needs.

The company also achieved record first-half AI-related sales and bookings, with an invoiced value exceeding $50 million, supporting its position as a key enabler in the IT channel.

What did Dicker Data management say?

Executive Chair and Managing Director Fiona Brown said:

The Company delivered a strong first half result, with gross revenue surpassing $2.1 billion. This performance reflects the continued strength of our operating model, disciplined execution across the business, and the ability of our teams to capture opportunities emerging from major technology refresh cycles, AI infrastructure investment and sustained demand across software and cybersecurity.

What’s next for Dicker Data?

Looking ahead, Dicker Data expects robust demand to continue through the rest of FY26, underpinned by digital transformation, ongoing technology refreshes, and broader adoption of AI solutions. Management expects growth in data centre, software, and AI-related projects to support H2 FY26, though end-point solutions growth may moderate and higher component prices could impact margins in the second half.

The company’s FY26 guidance is for group gross revenue between $4.3 billion and $4.4 billion, and PBT of $162 million to $165 million. Dicker Data says its diversified vendor portfolio and strong industry fundamentals position it well for continued momentum.

Dicker Data share price snapshot

Over the past 12 months, Dicker Data shares have risen 37%, far outpacing the All Ordinaries Index (ASX: XAO).

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The post Dicker Data delivers record H1 FY26 profit and lifts full-year guidance appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Harvey Norman Holdings Ltd (ASX: HVN) share price is in focus today after the company reported a 4.9% increase in statutory profit before tax to $790.29 million and announced a fully-franked final dividend of 13.0 cents per share.

What did Harvey Norman report?

• Total system sales revenue up 3.1% to $9.64 billion
• Earnings before interest, tax, depreciation & amortisation (EBITDA) rose 5.0% to $1.18 billion
• Statutory profit before tax increased 4.9% to $790.29 million
• Underlying profit before tax (excl. AASB 16, property revals, penalty) up 10.9% to $654.69 million
• Basic earnings per share grew 2.0% to 42.41 cents
• Fully-franked dividend lifted 3.8% to 27.5 cents per share for FY26

What else do investors need to know?

The company highlighted strong performance from its international operations, with overseas company-operated retail profit before tax jumping 23.4% to $135.72 million. Harvey Norman continued its international expansion, particularly in the UK, where its platform is being scaled for long-term growth.

Asset strength remains a key feature, with total assets increasing 5.7% to $8.85 billion. Operating cash flows were robust at $537.22 million, underpinning ongoing investments, dividend payments, and future initiatives.

What did Harvey Norman management say?

The company’s chair, Gerry Harvey, commented:

FY26 delivered growth in operating earnings, continued international expansion and strong franchise profitability. With total assets approaching $9 billion, net assets approaching $5 billion, substantial property ownership and low gearing, we remain well positioned to deliver long-term sustainable growth for our shareholders.

What’s next for Harvey Norman?

Harvey Norman is focused on leveraging its growing international presence, especially in established markets like New Zealand, Asia, and Europe. Management expects positive momentum to continue as the company opens new stores, invests in Next Gen-AI product categories, and maintains attention to cost management.

With a strong asset-backed balance sheet and conservative gearing, the business aims to fund further expansions while supporting long-term value creation for shareholders.

Harvey Norman share price snapshot

The Harvey Norman share price is underperforming the S&P/ASX 200 index (ASX: XJO) with a decline of around 27% over the past 12 months.

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The post Harvey Norman lifts profit and dividend in FY26 earnings result appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 positions in and has recommended Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.