This Under-The-Radar AI Defense Stock Hits 52-Week High - Here's Why

One Stop Systems, Inc. (NASDAQ:OSS) shares rose Wednesday after the company reported upbeat first-quarter 2026 earnings.

One Stop Systems Earnings Snapshot

The company reported revenue from continuing operations growth of 55% to $8.1 million, beating the consensus of $7 million.

The revenue growth is driven by stronger sales of data storage systems for the P-8A program, higher demand for liquid-cooled servers from a medical imaging OEM, and defense-related prototype compute systems for combat vehicle vision applications.

Customer-funded development revenue grew 145% year over year, reflecting deeper engagement in next-generation AI and defense programs.

Adjusted EPS of one cent came above the consensus of a loss of 4 cents.

Gross margin improved to 51.6% from 45.5% a year earlier. A favorable revenue mix, greater engineering efficiencies in funded development programs, and better manufacturing absorption from higher volumes aid it.

Contract Wins

New bookings totaled nearly $15 million, resulting in a 1.8 book-to-bill ratio, with notable demand from defense (including the U.S. Navy) and commercial aerospace customers.

The company won a $10.5 million set of new awards from the U.S. Navy and a defense contractor, bringing the cumulative program value to over $65 million to date.

In aerospace, the company secured a $1.1 million order with potential to scale up to $6.5 million over five years.

In robotics, it signed a contract expected to generate around $2 million in 2026 and between $10–$15 million over five years.

Additionally, a new energy data center customer placed an initial order of over $500,000, with total long-term potential estimated at up to $10 million.

Outlook

For 2026, the company expects 20% to 25% revenue growth, gross margins around 40%, and positive EBITDA, while noting potential supply chain pressures on component availability.

One Stop Systems sees sales of $38.659 million to $40.270 million, versus analyst estimates of $38.974 million.

One Stop Systems Price Action

OSS Price Action: One Stop Systems shares were up 57.47% at $15.38 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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