3 Defense Stocks Poised to Benefit From Rising Global Military Budgets
Global defense spending is surging, and these three cash-rich contractors look best positioned to capitalize.
Overview
The world is arming up at a pace not seen in decades. Global military spending reached a record $2.9 trillion in 2025, NATO's combined defense budgets topped $1.5 trillion for the first time in 2026, and members have committed to a path toward spending 5% of their gross domestic product (GDP) on defense. Europe alone lifted spending by double-digit percentages, the fastest growth since the Cold War. That flood of money flows to the companies that build the ships, planes, and systems, and the ones best positioned to capture it are those with the financial strength to expand. Here are three defense contractors with solid balance sheets and clear momentum.
Image source: Getty Images.
General Dynamics (NYSE: GD) is the most diversified of the group, spanning nuclear submarines, combat vehicles, government IT, and Gulfstream business jets. That mix matters because it gives the company multiple ways to grow as budgets rise at home and abroad.
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Source
Originally published at www.fool.com.