What is NATO's new defense spending commitment?

NATO members committed to spending 5% of their GDP on defense by 2035.

What are the three defense stocks mentioned in the article?

The stocks are RTX, Lockheed Martin, and Northrop Grumman.

Why are defense stocks considered resilient investments?

Because they have long-term government contracts that provide relatively stable revenue streams regardless of political noise.

3 Resilient Defense Stocks to Buy Amid Global Military Spending Surge

Global defense spending is surging, with the US FY2027 budget request at $1.45 trillion and NATO members committing to 5% of GDP. We highlight 3 resilient defense stocks, including RTX.

June 30, 2026

2 min read

Source: 24/7 Wall St.

Key Numbers

fy2027 budget request

$1.45 trillion

budget increase

$440.9 billion

budget increase pct

44%

nato gdp target

nato target year

2035

The global defense industry is experiencing a spending boom, with the US Department of War's FY2027 budget request landing at $1.45 trillion, a $440.9 billion (44%) increase from the FY2026 enacted level. Additionally, NATO members have committed to spending 5% of their GDP on defense by 2035, creating multi-year demand.

In this context, three resilient defense stocks stand out:

RTX Corporation (RTX)

RTX is a major defense and aerospace company, formed from the merger of Raytheon and United Technologies. It benefits from a broad portfolio including missile systems, radar, and aviation.

Lockheed Martin (LMT)

The world's largest defense contractor, known for the F-35 fighter jet and missile systems.

Northrop Grumman (NOC)

Specializes in aerospace and defense systems, including the B-21 Raider bomber.

These companies have long-term government contracts, providing relatively stable revenue streams regardless of political noise. However, investors should assess risks such as shifting spending priorities and regulatory challenges.

Frequently Asked Questions

The proposed budget is $1.45 trillion, a 44% increase from the FY2026 enacted level.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.