Best Defense Stocks to Buy in 2026

June 10, 2026 · 10 min read

NATO spending commitments, drone warfare doctrines, and AI-integrated battlefield systems are driving the largest multi-year defense budget expansion since the Cold War. Here's a full-metrics breakdown of the best plays — from prime contractors to AI defense software.

Full metrics comparison — prime contractors and AI defense

Backlog data in $B. AI scores use BriMindInvest's composite signal (20–96 scale). Defense gross margins are lower than tech — they reflect cost-plus contract structures, not business quality. Data June 2026.

TickerAI ScoreFwd P/ERev GrowthBacklog $BDiv YieldBuy%Target ↑
RTX7922x+10%$206B2.2%73%+15%
GD7720x+9%$93B2.1%74%+14%
LMT7618x+6%$160B2.8%50%+10%
NOC7420x+5%$84B1.6%50%+12%
PLTR73120x+36%$5B30%+5%

Backlog as revenue visibility — the defense sector's unique advantage

Backlog represents legally binding future revenue — contracts already signed but not yet recognised as income. A $206B backlog for RTX means ~3.5 years of revenue is already committed, regardless of future contract wins. No other sector offers this level of forward revenue visibility.

Backlog ($B) — forward revenue visibility
RTX — RTX Corporation206
GD — General Dynamics93
LMT — Lockheed Martin160
NOC — Northrop Grumman84
Revenue Growth % YoY
RTX10
GD9
LMT6
NOC5
PLTR36

Stock-by-stock breakdown

RTXRTX CorporationAI 79 · Strong
Missiles / Engines / Avionics
Fwd P/E
22x
Rev Growth
+10%
Backlog
$206B
Div Yield
2.2%
Buy %
73%
Target ↑
+15%
Buy 16 (64%)Hold 8Sell 1
GDGeneral DynamicsAI 77 · Strong
Land / Naval / Business Jets
Fwd P/E
20x
Rev Growth
+9%
Backlog
$93B
Div Yield
2.1%
Buy %
74%
Target ↑
+14%
Buy 14 (61%)Hold 8Sell 1
LMTLockheed MartinAI 76 · Strong
Aerospace / Missiles
Fwd P/E
18x
Rev Growth
+6%
Backlog
$160B
Div Yield
2.8%
Buy %
50%
Target ↑
+10%
Buy 12 (50%)Hold 10Sell 2
NOCNorthrop GrummanAI 74 · Strong
Space / Stealth / Nuclear
Fwd P/E
20x
Rev Growth
+5%
Backlog
$84B
Div Yield
1.6%
Buy %
50%
Target ↑
+12%
Buy 10 (50%)Hold 8Sell 2
PLTRPalantir TechnologiesAI 73 · Strong
AI Defense Software
Fwd P/E
120x
Rev Growth
+36%
Backlog
$5B
Div Yield
Buy %
30%
Target ↑
+5%
Buy 8 (31%)Hold 14Sell 4

Recent news and catalysts

Jun 2026NATO member states collectively commit to average defense spending of 2.4% of GDP by 2028 — Poland, Germany, and Romania all announce spending targets above 3%, driving record European prime contractor orders.
Jun 2026RTX Pratt & Whitney GTF engine inspection and repair program 90% complete — management guides to $2B+ tailwind in 2027 earnings as the overhang resolves; Q2 2026 defence orders up 18% YoY.
May 2026Palantir's US government TCV (Total Contract Value) reaches $1.2B in Q1 2026 — AIP (AI Platform) deployed across 14 US military commands; CEO Alex Karp calls it the 'operating system of warfare for the Western world.'
May 2026Lockheed Martin receives $12B LRIP-18 contract for 145 F-35 aircraft across US and international customers — programme of record remains on schedule; international demand accelerating from Central European NATO members.
Apr 2026General Dynamics' submarine division wins $18B SSN(X) next-generation attack submarine contract — sole-source award that will generate revenue through the 2040s; Electric Boat workforce growing to 22,000 employees.

Frequently asked questions

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Free AI scores, backlog data, dividend yields, and analyst targets for any two defense stocks.

LMT vs RTXNOC vs GD