Why Did RCAT Stock Rally 9% Today?

• Red Cat successfully tested its Black Widow drone with Palantir Technologies' Visual Navigation software, proving it can fly without GPS.
• The test confirmed reliable performance across multiple flight conditions.
• After the update, Red Cat shares rose more than 9% in Monday’s premarket trading.

Red Cat Holdings Inc.(RCAT) announced on Monday the successful completion of its Black Widow system test flights, integrated with Palantir Technologies Inc.’s (PLTR) Visual Navigation (VNav) software. 

The collaboration demonstrated that the drone can operate effectively even when GPS signals are unavailable, an essential capability for modern battlefield operations.

Test Flight Mechanism 

Palantir’s VNav software allowed the Black Widow drone, part of the U.S. Army’s Short Range Reconnaissance (SRR) program, to navigate using only onboard sensors and visual data. 

The multi-day test series confirmed stable flight performance in both standard and GPS-denied conditions. Following the announcement, Red Cat stock traded over 9% higher in Monday’s premarket and was among the top five trending equity tickers on Stocktwits. 

According to test data, VNav accurately guided the drone at speeds of up to 16 mph and altitudes as low as 150 feet above ground level. 

By fusing visual and inertial data directly on the drone’s edge hardware, VNav provides reliable positioning without relying on satellite signals. The system completed an entire intelligence, surveillance, and reconnaissance (ISR) mission autonomously.

What Are Stocktwits Users Saying?

A bullish user lauded the company’s latest update.

Another user believes Red Cat is ‘one of the leading drone companies representing the United States.’

However, retail sentiment around the stock remained in ‘bearish’ territory amid ‘low’ message volume levels. 

The companies plan to advance toward an official U.S. Army demonstration and eventual deployment of VNav-equipped Black Widow drones. 

Red Cat stock has shed over 13% in 2025 but gained over 264% in the last 12 months. 

Also See: Meta Faces Rising China Challenge As Alibaba, Xiaomi Join AI Smartglasses Race: Goldman Sees Supply Chain Winners

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