Monday, February 2, 2026 at 1:00 PM
US defense contractors are increasing capital expenditures in response to pressure from the Pentagon and the Trump administration's threats regarding dividends and share buybacks, with a projected significant rise in spending for 2026.
Companies are bringing in retired military brass to navigate Washington and win Pentagon contracts.
The new strategy will give priority to overseas partners that have invested in their own military defenses.
When considered as a percentage of GDP, the projected spending of four tech giants for 2026 rivals the most momentous capital efforts in U.S. history, as shown in these charts.
RTX’s Raytheon division committed to surging its missile output, following pressure from Pentagon officials and President Trump to increase production.
