Sacra estimates that Anduril hit $2.1B in revenue in 2025, up 110% from $1B in 2024. The company is projecting $4.3B in revenue for 2026, driven by Arsenal-1 scaling production in Ohio, with over $900M in campus spend tied to the facility. In March 2026, the U.S. Army officially awarded Anduril a 10-year enterprise contract with a ceiling of up to $20B, consolidating more than 120 separate procurement actions into a single framework; the $20B represents maximum potential value, not an obligated amount.

The company closed a $5B funding round in May 2026, supplying capital to accelerate product development and secure additional defense contracts. Anduril is projecting an operating loss of approximately $1.2B in 2026, reflecting heavy upfront R&D and manufacturing investment ahead of revenue recognition on large multi-year contracts.

Anduril secured its first defense contract, a $12.5 million deal with the U.S. Marine Corps, about a year after the company was founded in 2017. By 2020, Anduril won a massive $1B System Integrator Partner (SIP) program contract—its first ACAT I, the biggest acquisition category—in a competitive showdown against defense primes.

Anduril is seeking $4B at a $60B valuation in a new round expected to be led by Andreessen Horowitz and Thrive Capital. Prior to this, Anduril was last valued at $30.5B following its $2.5B Series G round led by Founders Fund in June 2025, up from $14B at its Series F in August 2024.

Earlier, the defense-tech firm hit $8.5B on a $1.48B Series E in December 2022 and was first marked around $4.7B after a $450M Series D in June 2021. Anduril has now raised $6.26B in total funding since its 2017 founding, with notable investors including Founders Fund, Sands Capital, Andreessen Horowitz, Fidelity Management & Research Company, and General Catalyst. At $4.3B in projected 2026 revenue, the proposed $60B valuation implies an approximately 14x forward revenue multiple.

Anduril Industries was founded in 2017 in Irvine, California by Palmer Luckey, co-founder of Oculus VR, Brian Schimpf, and Trae Stephens, with the mission to build cutting-edge technology for defense and security.

The cornerstone of Anduril's suite of products is Lattice, an AI software platform designed to integrate data from a multitude of sensors and systems, enabling real-time situational awareness and data-driven decision-making.

Lattice is designed to ingest massive amounts of data from various sources, including cameras, radars, and other sensors, and apply advanced machine learning algorithms to detect, identify, and track multiple targets simultaneously. This enables defense agencies and border control to effectively monitor vast areas with minimal human intervention, as Lattice can automatically alert operators to potential threats or anomalies.

Lattice can also perform complex tasks like object recognition, behavioral analysis, and predictive modeling. For example, Lattice can distinguish between different types of vehicles, identify suspicious patterns of movement, and even anticipate potential threats based on historical data and real-time intelligence.

To augment Lattice, Anduril has developed a series of other hardware products, including:

Anduril is building Arsenal-1, a $1B, 5-million-square-foot autonomous weapons manufacturing facility in Ohio creating 4,000+ jobs. The first main building is complete at approximately 1 million square feet, with full production slated for July 2026. Production of the Fury high-speed combat drone is already underway at Arsenal-1 (begun March 2026), with Roadrunner, Barracuda, and a classified program also slated for the site. To further expand its manufacturing footprint, Anduril has partnered with Rheinmetall for European markets and is considering UK manufacturing facilities to serve European defense budgets projected at €800B through 2027.

By leveraging machine learning, Anduril's drones, towers, and sensors can operate with minimal human intervention, freeing up personnel for other critical tasks.

For example, Ghost UAS can autonomously navigate to designated waypoints, avoid obstacles, and even coordinate with other drones to perform complex missions. Similarly, Sentry Towers can automatically detect and track targets, alerting operators only when a potential threat is identified. This autonomy is a force multiplier, enabling a small team of operators to effectively control and monitor a large fleet of drones and sensors, reducing the cognitive burden on personnel and allowing them to focus on higher-level decision-making rather than mundane tasks.

Anduril's autonomy ambitions extend to crewed aircraft and soldier systems. The YFQ-44A has progressed well beyond initial semi-autonomous flight, with the Air Force having confirmed integration of its government-owned autonomy architecture with the aircraft, announced weapons-integration and captive-carry testing, and conducted operational sorties at Edwards AFB through its Experimental Operations Unit to refine sustainment procedures. Manufacturing of the prototype is slated to begin at the Ohio facility. On the ground, Anduril offers EagleEye (unveiled October 2025), a modular mixed-reality soldier helmet family built on Lattice with command-and-control, sensor feeds, AI, and real-time teammate tracking, developed following a $159M Army prototype award for a Soldier Borne Mission Command combat goggle. Meta and Anduril have partnered to co-develop military VR/AR/XR devices for U.S. Army use, while L3Harris integrates its ENVG-B night-vision system into the Lattice-enabled SBMC-A solution, building on Anduril's earlier takeover of Microsoft's IVAS program.

Lattice serves as the central nervous system for this suite of hardware products, processing and analyzing data from the various hardware platforms to provide a comprehensive, real-time picture of the battlefield.

This integrated approach allows for seamless coordination between different assets and enables rapid, data-driven decision-making. For instance, if a Sentry Tower detects a suspicious vehicle, it can automatically dispatch a Ghost UAS to investigate, while simultaneously alerting nearby ground units via Dust sensors. If the vehicle is confirmed as a threat, Anvil can be deployed to neutralize it.

While Anduril has become known for its drones, countering the threat of drones is becoming an even bigger business. Anduril secured a $642M contract with the Marine Corps to build AI-powered anti-drone systems to protect military installations from Group 1 and Group 2 drones (typically no heavier than 55 pounds and flying at a maximum altitude of about 3,500 feet). This follows a previous $200M contract to develop counter-drone systems for the Marine Air Defense Integrated System (MADIS). The rapid growth in this segment reflects the emerging asymmetric threat posed by small commercial and homemade drones that have inflicted approximately 80% of all casualties on the battlefield in the Russo-Ukrainian War.

Anduril has also taken over Microsoft's $22B contract to develop mixed-reality goggles for soldiers with integrated counter-drone capabilities, and the U.S. Army has since selected Anduril to deliver a modernized counter-drone fire control system to replace Northrop Grumman's FAAD C2, following DIU-led competitions focused on short-range air defenses.

Anduril's acquisition of ExoAnalytic Solutions adds a 400-telescope space-surveillance network and approximately 130 employees, more than doubling its space-focused headcount, extending Lattice's kill-chain integration from terrestrial and aerial domains into orbit. Alongside this, Anduril leads a Golden Dome space-based interceptor consortium — including Impulse Space, Inversion Space, K2 Space, Sandia National Laboratories, and Voyager Technologies — targeting the U.S. government's initiative to build a next-generation homeland missile defense architecture that extends into space.

Anduril's business model is a sophisticated fusion of a SaaS platform (Lattice) and a suite of AI-powered hardware products that function as cross-sells and upsells.

At the heart of this model is Lattice, an AI software platform that integrates and analyzes data from various sensors and systems in real-time. Lattice is sold to defense and security customers as a subscription-based service, akin to a SaaS model. Customers pay a recurring fee to access Lattice's capabilities, which include object detection, tracking, and data fusion.

When a customer gets started with Lattice, Anduril can then offer them their hardware products as add-ons to enhance the capabilities and value of the platform as cross- and upsells. For example, a customer using Lattice for border surveillance might be upsold Sentry Towers to provide automated monitoring, or Ghost UAS for aerial reconnaissance.

This model allows Anduril to capture a larger share of the value chain by providing both the software and hardware components of the solution, increasing revenue per customer but also creating a more integrated and sticky product ecosystem that drives retention. By controlling both the software and hardware, Anduril can also ensure optimal performance and compatibility between the different components — particularly important in a defense context where reliability and seamless integration are critical.

Anduril Industries flipped the traditional business model of defense contracting — instead of waiting for Requests for Proposals (RFPs) from governmental agencies, Anduril has gone after a strategy where they take on the R&D burden upfront, allowing them to offer pre-developed, cutting-edge solutions to the Department of Defense and other allied military forces worldwide.

This product-centric approach is a key differentiator for Anduril. By taking on the R&D risk, Anduril can get to market much faster than going through the traditional multi-year government acquisition process. The U.S. Army has formalized this relationship with a 10-year enterprise contract (five-year base plus five-year option) with a maximum ceiling of $20B, consolidating 120+ prior procurement actions into a single vehicle for acquiring Anduril's commercial technologies.

By eschewing cost-plus contracts and instead doing their R&D upfront and then selling their products for a fixed price, Anduril can target much higher margins than the industry-standard 8-10%.

By selling its products as commercial items at a fixed price, Anduril can earn "SaaS-like" gross margins on its hardware-software systems, with low hardware costs and high software content.

Despite the one-off nature of hardware sales, continuous upgrades are a key part of Anduril's model. The company employs a "phasing as a service" approach where its software-defined systems are constantly updated with new features and capabilities as part of an ongoing, fixed-price service contract. This ensures that Anduril's products don't go obsolete and that customers benefit from the latest breakthroughs without having to buy a whole new system.

Anduril pursues vertical integration to industrialize defense tech, not just assemble components. This extends across software, sensors, propulsion, and ruggedized computing. Anduril has brought cooled-IR camera manufacturing in-house through its acquisition of American Infrared Solutions (AIRS), integrating that technology into products like Iris and Wisp. Its acquisition of Klas, a Dublin-based maker of ruggedized edge-computing hardware used by military and first-responder customers, adds real-time edge processing capability directly to the Lattice ecosystem. On propulsion, Anduril operates a Mississippi solid rocket motor factory (online August 2025) targeting capacity of 6,000 tactical motors per year by end-2026 — making it the United States' third SRM supplier alongside Northrop Grumman and L3Harris' Aerojet Rocketdyne — with motors serving applications from missile interceptors to deep-space probes.

This vertical integration strategy is backed by a growing domestic and international manufacturing footprint. Arsenal-1 in Ohio targets autonomous weapons production, while a $1B, 1.18-million-square-foot campus in Long Beach and Lakewood, California, expected to support approximately 5,500 direct jobs, is slated to open in mid-2027. Together, these facilities position Anduril to scale production at a pace the traditional defense industrial base has historically struggled to match.

Anduril closed a $2.5B Series G in June 2025, led by Founders Fund, at a $30.5B valuation. Anduril is in discussions to raise approximately $4B from investors including Thrive Capital and Andreessen Horowitz at a valuation of around $60B, though that round has not been confirmed closed.

Anduril's primary competition comes from the large defense primes such as Lockheed Martin, Boeing, Raytheon, and Northrop Grumman.

As Ross Fubini, founder of XYZ Venture Capital and an early Anduril investor, explains: "Anduril's primary competition is the difficulty of displacing these primes, which also has to do with the attribute I said before, its biggest challenge is just changing the world of procurement so that we can get the best products out for the cheapest price."

The 10 largest defense contractors account 80%+ of all aerospace and defense revenues, reflecting the advanced and continuing consolidation in the sector. These incumbents benefit from massive scale, entrenched customer relationships, and deep political influence.

The primes are also not ignoring the rapid technological advancements in areas like unmanned systems, artificial intelligence, and software-defined hardware. Each of the major primes has established its own venture capital arm to invest in startups innovating in these fields.

They are also developing their own competing product lines in-house. For instance, Boeing is developing an autonomous fighter jet called the MQ-28 Ghost Bat.

The primes rely on the traditional cost-plus contracting model, where they have little incentive to innovate rapidly or drive down costs. Their offerings tend to be bespoke one-off products designed to detailed government specifications, rather than more flexible and iteratively developed commercial items.

Sustaining their large overhead requires continually winning large contracts, incentivizing political maneuvering over pure technological superiority.

Anduril's most direct startup competitor is arguably Shield AI, which is applying autonomy and AI to power unmanned defense systems.

Founded by a team that includes former Navy SEALs, Shield AI has won several high-profile contracts for its AI pilots and is now expanding into additional domains like space and underwater.

Other startups like Palantir (data analytics), SpaceX (launch and satellites), and Relativity Space (3D-printed rockets) are also challenging the primes in their respective domains.

While each of these companies may compete with Anduril for some contracts, they are also collectively validating the thesis that software-first startups can win against the primes by moving faster and leveraging best practices from the commercial world.

Finally, the market that these defense startups are going after isn't best understood as a single monolithic market, which means that there's plenty of room for many of them to win.

Early Anduril employee Scott Sanders frames the competitive landscape this way: "The DOD is not a unified market. It's not. You can have two program managers across the hall from each other, and they have completely different acquisition strategies about complete different things, using different colors of money. It's a conglomeration of micro markets, and they're all very different."

Anduril is riding Europe's defense wake-up call by building local production and R&D hubs to satisfy sovereignty agendas as the EU proposes €800B in new military spending by 2027.

After signing its first major European defense deal to sell ~$38M of Altius drones to the UK for use in Ukraine in March 2024, Anduril has moved aggressively to localize its European presence. Anduril has announced plans to build a UK drone factory, and its strategic partnership with Rheinmetall covers co-development and production of European variants of Barracuda and Fury autonomous systems, as well as solid rocket motor opportunities for Europe, with production involving sovereign suppliers and industrial partners throughout the continent. This localization strategy mirrors approaches used by American defense primes like Boeing (~35% of defense revenue from international sales), Lockheed (~27%), and Northrop (14%), who have successfully sold into Europe, the Middle East, and Asia-Pacific since the 1950s. By opening subsidiaries like Anduril UK and Anduril Australia (established 2022), building overseas factories, and partnering with primes like Rheinmetall (Germany), European countries can "buy European" while getting the advantages of American technology.

Anduril's Asia-Pacific footprint is already operational. Australia awarded Anduril Australia a five-year, A$1.7B contract for a fleet of Ghost Shark extra-large autonomous undersea vehicles, supporting 120 existing jobs and creating 150+ new ones with 40+ Australian suppliers. Anduril operates a Sydney manufacturing facility (opened October 2025) producing Ghost Shark vehicles under that contract, with the first vehicle rolling off the line ahead of schedule for sea acceptance testing. The company has also established offices in Taiwan and South Korea and is signaling entry into Japan.

In the Middle East, Anduril has launched a joint venture with UAE defense firm EDGE Group to build autonomous drones in Abu Dhabi. EDGE has invested around $200 million in the venture, and an unnamed UAE entity has placed 50 orders for the "Omen" system. The partnership includes a 50,000-square-foot R&D hub to serve Middle East customers, with production targeted by end of 2028 and applications spanning maritime surveillance, humanitarian relief, and airborne connectivity.

Domestically in the U.S., Anduril stands to win big from the DoD's plans to cut the Pentagon's budget by ~$250B by trimming 8% per year for the next 5 years.

Anduril's entire model of American Dynamism undercuts stagnant incumbents on long cost-plus contracts by building and taking on the risk and cost of R&D upfront, then selling finished products.

Allocation is moving away from superprojects like Lockheed Martin's F-35 program ($2T lifetime cost) and towards the 17 areas the Pentagon has exempted from any cuts, like drones (Anduril, Shield AI, Neros), training (Red 6), nuclear modernization (Kairos Power, Oklo), unmanned ocean vessels (Anduril, Saronic, Saildrone) and homeland missile defense (Anduril, Epirus). Across many of these categories, Anduril is today a market leader.

Anduril's acquisition of ExoAnalytic Solutions — which operates a 400-telescope space-surveillance network — positions it to offer a full-stack space domain awareness capability, moving beyond kill-chain software into persistent orbital sensing. Anduril leads a Golden Dome space-based interceptor consortium alongside Impulse Space, Inversion Space, K2 Space, Sandia National Laboratories, and Voyager Technologies, targeting a new procurement category where Lattice could serve as the integrating backbone across terrestrial, aerial, and orbital defense assets.

Procurement rigidity: If the Pentagon's procurement practices remain rigid and continue to favor established defense contractors, Anduril may find it difficult to secure the long-term contracts crucial for sustained growth and scalability. The March 2026 Army enterprise contract consolidates over 120 procurement actions, which reduces friction but leaves Anduril exposed if that framework is restructured or defunded.

Capital intensity and burn: Anduril is projecting an operating loss of approximately $1.2B in 2026 while simultaneously funding Arsenal-1 in Ohio, a new $1B California campus, and the Mississippi SRM facility, with adjusted EBITDA profitability not expected until 2030. If revenue recognition on multi-year contracts lags the build-out timeline, the company's cash runway could tighten significantly before manufacturing scale advantages materialize.

Government largesse: It's been typical practice for the DOD to spread contracts around the country to different contractors as part of winning political support and decentralizing the supply chain. These market dynamics could limit Anduril's ability to dominate in defense and aerospace.