Why is OUST Stock Surging Over 20% in Premarket Trading Today?

Ouster Inc. (NASDAQ: OUST) shares are experiencing a dramatic surge in premarket trading on June 11, 2025, jumping over 21% to $19.47 after closing at $16.03 the previous day. The lidar sensor company’s stock rally comes on the heels of a major announcement that the U.S. Department of Defense has approved its OS1 digital lidar sensor for use in unmanned aerial systems.

This Pentagon approval represents a significant milestone for Ouster, as it becomes the first high-resolution 3D lidar sensor approved under the Blue UAS Framework, marking a crucial validation of the company’s technology for defense applications.

Pentagon Approval Drives Major Stock Movement for Ouster Inc.

Ouster’s stock price skyrocketed in premarket trading, gaining +$3.44 or +21.46% to reach $19.47 as of 7:49:59 AM EDT on June 11, 2025. This significant movement follows the company’s announcement that the Defense Innovation Unit has vetted and approved its OS1 digital lidar sensor for inclusion in the Blue UAS Framework. The approval came after a comprehensive review of components and cybersecurity testing, demonstrating the rigorous standards required for defense applications.

The Blue UAS Framework represents a holistic and continuous approach that rapidly vets and scales commercial unmanned aircraft system technology for the Department of Defense. As an approved list of interoperable, National Defense Authorization Act (NDAA) compliant UAS components and software, inclusion in this framework provides significant opportunities for government and industry partnerships. Ouster’s achievement as the first high-resolution 3D lidar sensor to receive this approval distinguishes it from previously approved 2D lidar solutions.

Prior to this announcement, OUST had already demonstrated strong performance with a 31% year-to-date gain through Tuesday’s close.

The stock closed at $16.03 on June 10, 2025, representing a +5.56% increase from the previous session. With a market capitalization of $862.334 million and an average daily volume of 1.64 million shares, the premarket surge reflects significant investor confidence in the defense approval’s potential impact on future revenues.

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Strategic Significance of Defense Department Validation

The Pentagon approval validates Ouster’s position as a leading supplier of 3D lidar sensors for U.S. defense applications. According to CTO Mark Frichtl, the company has taken significant steps to secure its supply chain, making the OS1 sensor compliant with NDAA requirements as affirmed by the Blue UAS Framework. This compliance is particularly crucial for applications where supply chain security is paramount, addressing growing concerns about technology dependence on foreign suppliers.

Ouster’s OS1 sensor offers superior performance in weight, power efficiency, and reliability under rugged conditions compared to previously approved 2D lidar solutions. The technology provides drones and other unmanned aerial systems with access to industrial-grade, high-fidelity spatial awareness for advanced perception and autonomous operation. The company’s technology is already deployed across multiple U.S. government agencies, including the Army, Navy, National Labs, NASA, and various transportation departments in applications ranging from drones and ground vehicles to marine vessels and traffic security systems.

The financial metrics surrounding OUST reveal a company in transition, with trailing twelve-month revenue of $117.79 million but a negative profit margin of -80.83%.

However, the defense approval could serve as a catalyst for improved financial performance, particularly given the substantial government market opportunity.

With analyst price targets ranging from $11.00 to $17.00 and an average target of $14.28, the current premarket price of $19.47 suggests investors are pricing in significant upside potential from the Pentagon validation.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.