This article looks at the 10 Largest Defense Stocks in 2025.
Several defense giants over the last few days raised their 2025 outlooks, citing higher demand despite tariffs and ongoing economic uncertainty. Wars in Ukraine and Gaza have spurred military spending worldwide, helping to draw investors towards defense stocks.
Another vital factor driving the momentum has been the rising defense budgets of European countries, especially after President Trump took office in January and prompted Europe to spend more on defense while stressing that Washington could no longer foot the bill.
In May, the United States agreed to sell Saudi Arabia an arms package worth $142 billion. The deal, deemed as the largest defense cooperation agreement ever made by Washington, is also contributing to the strong performance of American defense stocks.
The NYSE Arca Defense Index has surged 43.81% this year as of the close on October 23, and has comfortably outpaced the S&P 500 Index, which has returned 14.82% during the period.
While large defense stocks continue to benefit, smaller-cap contractors have also emerged as standout performers this year, amid surging demand for next-generation, low-cost military technology as nations modernize their militaries with AI-powered drones and unmanned vehicles that are cheap and cut dependence on ground forces.
Jon Siegmann, Managing Director at Stifel, who covers the aerospace and defense industry, was quoted as saying the following by Reuters last month about the shift towards agile and adaptable combat systems:
“The winners in this new market will be those companies leaning into the change and investing in low-cost, upgradable, and software-enabled weapon systems.”
With that said, let’s now head over to see the 10 Largest Defense Stocks in 2025.
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Our Methodology
We used screeners to compile a list of defense stocks and ranked them in ascending order of market capitalization as of the close of business on Monday, October 23, 2025. Additionally, we also included data on hedge fund holdings in these companies as of Q2 2025 to provide further insight into investor interest.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Curtiss-Wright Corporation (NYSE:CW)
Market Cap: $21.0 Billion
Number of Hedge Fund Holders: 60
Curtiss-Wright Corporation (NYSE:CW) is among the 10 Largest Defense Stocks in 2025. On October 20, Stifel lifted the stock’s price target to $502 from $457 while maintaining a Hold rating for its shares.
The analyst noted that, following uncertainty in global markets since April this year, the industrial companies he covers have been able to pass price increases to customers with little resistance. Moreover, the research firm believes that tariffs, on average, have been only slightly accretive to EPS for these companies.
Stifel cited Curtiss-Wright Corporation (NYSE:CW) an innovative company providing high-tech and critical-function offerings to structurally growing markets. It believes the company can outgrow markets through new product developments in stable to growing sectors.
The firm also highlighted CW’s strong free cash flow generation, which provides the company with the capacity to pursue inorganic growth opportunities. Stifel added that Curtiss-Wright Corporation (NYSE:CW)’s growth trajectory can be further enhanced by availing what it described as ‘multi-decade nuclear opportunities’.
Earlier this month, the company was selected by American Rheinmetall to provide the Turret Drive Stabilization System for the prototype phase of the U.S. Army’s XM30 Combat Vehicle program. Curtiss-Wright will also be supplying encrypted flight data recorder technology to Bell Textron for the Army’s MV-75 Long Range Assault Aircraft Program.
Curtiss-Wright Corporation (NYSE:CW) provides engineered products, solutions, and services for the aerospace and defense markets.
9. Rocket Lab Corporation (NASDAQ:RKLB)
Market Cap: $30.8 Billion
Number of Hedge Fund Holders: 46
Rocket Lab Corporation (NASDAQ:RKLB) is among the 10 Largest Defense Stocks in 2025. On October 17, KeyBanc lifted the price target on the stock to $75 from $50 while maintaining an Overweight rating on its shares following a meeting with the company’s CEO and CFO and a visit to its Long Beach, CA, headquarters.
The firm said that it had gained incremental visibility into the robust growth within Rocket Lab Corporation (NASDAQ:RKLB)’s Space Systems segment and the production of Archimedes engines. KeyBanc believes the company is positioning itself as a national security asset through its hypersonic initiatives and reliable space access.
The analyst also noted the company’s strong cash position, which is facilitating the ongoing growth investments, likely mergers and acquisitions, and future space endeavors.
Overall, Wall Street analysts have a bullish outlook for the stock with a consensus Buy rating. However, its one-year average share price target of $58.67 represents a near 8% downside from Wednesday’s close.
Rocket Lab Corporation (NASDAQ:RKLB) is an end-to-end space company with an established track record of delivering mission success. The stock is skyrocketing in 2025, with year-to-date returns of nearly 150%.
8. L3Harris Technologies, Inc. (NYSE:LHX)
Market Cap: $54.9 Billion
Number of Hedge Fund Holders: 53
L3Harris Technologies, Inc. (NYSE:LHX) is among the 10 Largest Defense Stocks in 2025. On October 20, the company announced that it had been selected by the Republic of Korea for its airborne early warning and control (AEW&C) program.
Under the contract, the firm will partner with Bombardier, Korean Air, and ELTA Systems to deliver modified Bombardier Global 6500 AEW&C aircraft for the country’s air force. The program is valued at over $2.26 billion.
The advanced aircraft fleet will operate longer and fly faster, aiding in enhancing Korea’s mission readiness. The aircraft will also cruise at higher altitudes, providing combat-proven radar coverage and improved security, which will aid in swift detection and tackling of threats. Moreover, the communications suite will offer interoperability with the US, NATO, and other allied partners, resulting in a networked battlespace.
Christopher Kubasik, Chair and CEO, at L3Harris Technologies, Inc. (NYSE:LHX) shared the following remarks on the contract award:
“L3Harris is ready to deliver an advanced aircraft fleet that will strengthen mission effectiveness for a key American ally in the Indo-Pacific region. We look forward to collaborating with the Republic of Korea to develop, test, integrate and sustain this vital capability for years to come.”
L3Harris Technologies, Inc. (NYSE:LHX) provides end-to-end technology solutions connecting the air, land, space, sea, and cyber domains in national security. The stock has delivered impressive returns in 2025, rising over 42% year-to-date as of October 23.
7. TransDigm Group Incorporated (NYSE:TDG)
Market Cap: $76.1 Billion
Number of Hedge Fund Holders: 79
TransDigm Group Incorporated (NYSE:TDG) is among the 10 Largest Defense Stocks in 2025. Several analysts have slashed the stock’s price target in recent weeks amid ongoing government shutdowns.
Morgan Stanley’s Kristine Liwag, on October 15, lowered TDG’s price target to $1,600 from $1,750. The analyst told investors that leading defense stocks were poised to report Q3 earnings during the shutdown, which has made it a challenge for management teams to forecast 2026 with clarity. However, the firm maintained its Overweight rating for the stock.
On the same day, Truist also cut its price target for TransDigm Group Incorporated (NYSE:TDG) to $1,647 from $1,730, while keeping a Buy rating for its shares. The adjustment came as part of a broader research note by the firm while previewing Q3 results in the Aerospace and Defense sector. The analyst described the defense segment as nuanced, given the impact of government shutdowns on Q4 and FY26 outlooks.
On the other hand, at the end of September, BMO Capital analyst Michael Goldie had initiated coverage of the stock with a Buy rating and a $1,420 price target. Although he acknowledged the lack of visibility over growth, Goldie believes that potentially large mergers & acquisitions activity could help the stock re-rate.
Despite the recent price target reductions, the overall sentiment around the stock looks promising. Wall Street analysts have a consensus Buy rating for TransDigm Group Incorporated (NYSE:TDG), with an average one-year share price target of $1,557.89, representing an upside of 17.43%.
TransDigm Group Incorporated (NYSE:TDG) manufactures engineered aircraft components for commercial and military aircraft.
6. Northrop Grumman Corporation (NYSE:NOC)
Market Cap: $86.5 Billion
Number of Hedge Fund Holders: 42
Northrop Grumman Corporation (NYSE:NOC) is among the 10 Largest Defense Stocks in 2025. During an earnings call with investors on October 21, CEO Kathy Warden said the defense firm was expecting more new U.S. Air Force (USAF) contracts for the B-21 program by the end of this year.
In July, Congress had passed the budget reconciliation bill, providing $4.5 billion to accelerate the production of the stealth bomber. According to Warden, Northrop Grumman Corporation (NYSE:NOC) is actively working with the USAF to accelerate production. However, the ongoing government shutdown has slowed down those discussions.
If an agreement is reached, the company plans on increasing investments to boost production. An acceleration of the B-21 program is also likely to result in higher revenue for the company in 2026, Warden said, while declining to comment on how much the top-line could grow.
The Northrop Grumman Corporation (NYSE:NOC) CEO was quoted as saying the following by Defense News:
“The actual production rates, the timing, and ultimately the outcome of those negotiations with the Air Force would define what that financial profile looks like. It’s too early for me to speculate on that.”
According to reports, the USAF intends to acquire at least 100 B-21s to replace its aging and retiring fleets of the B-2 Spirit and B-1 Lancers at some point in the 2030s. However, if the service decides to buy more than 100 B-21s, the request would be addressed in separate negotiations from the production acceleration discussions, said Warden.
Northrop Grumman Corporation (NYSE:NOC) is one of the largest defense contractors in the world. It is engaged in the design, development, integration, and maintenance of advanced systems across aeronautics, space, defense electronics, and mission solutions.
5. General Dynamics Corporation (NYSE:GD)
Market Cap: $92.2 Billion
Number of Hedge Fund Holders: 61
General Dynamics Corporation (NYSE:GD) is among the 10 Largest Defense Stocks in 2025. On October 20, the company announced that its Europe unit had received a contract worth approximately $3.5 billion to deliver the next-generation reconnaissance vehicle for the German Army Reconnaissance Corps.
The contract was commissioned by Germany’s Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support. It marks one of the largest modernization programs for the country’s ground forces.
According to General Dynamics Corporation (NYSE:GD), the new scout vehicle system includes networked reconnaissance sensor technology, and will offer improved mobility and assertiveness, which is expected to strengthen Germany’s defense capabilities amid rising security threats in Europe.
The contract follows media reports earlier in the month that the German government plans to order new armored vehicles for nearly 7 billion euros.
In other related news, on October 2, the defense giant secured a $1.25 billion contract to support the U.S. Army in Europe and Africa.
General Dynamics Corporation (NYSE:GD) is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments.
4. Lockheed Martin Corporation (NYSE:LMT)
Market Cap: $112.9 Billion
Number of Hedge Fund Holders: 73
Lockheed Martin Corporation (NYSE:LMT) is among the 10 Largest Defense Stocks in 2025. On October 20, Bernstein lifted the stock’s price target to $545 from $497 and maintained a Market Perform rating.
The adjustment came a day ahead of the company’s Q3 2025 earnings call and represented an upside potential of 8% from Monday’s close. The firm noted that Lockheed Martin Corporation (NYSE:LMT) has a strong top-line growth outlook, driven by substantial orders for F-35, PAC-3, CH-53K, and other programs.
However, the firm also highlighted the defense contractor’s operational challenges in the Aeronautics, Rotary and Mission Systems, and Missiles and Fire Control segments, which have led to recent charges.
Lockheed Martin Corporation (NYSE:LMT) declared financial results for the third quarter on October 21, with total revenue rising 8.8% year-over-year to $18.61 billion, surpassing analysts’ estimates of $18.56 billion. Earnings per share came in at $6.95, also beating expectations of $6.36.
The firm announced it would raise its 2025 revenue and profit forecasts, amid sustained demand for fighter jets and munitions stemming from escalating geopolitical conflicts in Europe and the Middle East.
Lockheed Martin Corporation (NYSE:LMT) is one of the largest defense contractors in the world. It is famed for manufacturing notable fighter jets, including the F-35. The company also delivers advanced autonomous solutions to the US military to support its most demanding missions.
3. The Boeing Company (NYSE:BA)
Market Cap: $164.6 Billion
Number of Hedge Fund Holders: 101
The Boeing Company (NYSE:BA) is among the 10 Largest Defense Stocks in 2025. On October 21, the company announced that it had received two contract awards, valued at $461 million, from the U.S. Army for nine CH-47F Block II Chinook helicopters.
The latest order has increased the number of CH-47F Block II aircraft under order to 18. Heather McBryan, Vice President and Program Manager, Cargo Programs, for Boeing Defense, Space and Security, was quoted as saying the following on the award:
“The rapid succession of contracts indicates that the Chinook will continue to play an important role in the U.S. Army’s family-of-systems, particularly in a contested logistics environment. We value our partnership with the Army and the support from Congress as we deliver this modernized capability to the warfighter.”
The Boeing Company (NYSE:BA) has so far delivered six CH-47F Block II production helicopters to the U.S. Army. These are currently undergoing several evaluations to demonstrate their improved capabilities.
The CH-47F Block II offers notable upgrades, including an improved drivetrain and airframe that raise the maximum gross weight by 4,000 pounds, significantly improving lift capability. Moreover, fuel system changes have extended the mission radius for almost all payloads.
According to the company’s press release, these upgrades coupled with enhanced sustainment and affordable future upgrades, pave the way for CH-47F Block II to meet Army’s flying needs for at least another four decades.
The Boeing Company (NYSE:BA) is a leading aerospace company that manufactures commercial airplanes, space systems, and defense equipment for customers in over 150 countries.
2. RTX Corporation (NYSE:RTX)
Market Cap: $240.6 Billion
Number of Hedge Fund Holders: 71
RTX Corporation (NYSE:RTX) is among the 10 Largest Defense Stocks in 2025. On October 21, the company reported financial results for the third quarter of fiscal 2025, with revenue and earnings both beating estimates.
The Arlington, Virginia-based firm also announced to raise its revenue and profit guidance for the full year, amid soaring demand for its missiles and aftermarket services, which strengthened its ability to face the adverse fallout from tariffs.
Following the results, several analysts adjusted their position on the stock. On October 22, UBS raised its price target on RTX Corporation (NYSE:RTX) to $202 from $197 and maintained a Buy rating. The financial results reflected progress across multiple margin and revenue drivers, according to the analyst.
Analysts at Morgan Stanley also lifted their price target to $215 from $180, representing a nearly 21% upside from Wednesday’s close. The firm told investors that RTX remains its top pick in Aerospace, while keeping an Overweight rating on its shares.
Susquehanna also hiked the firm’s price target to $205 from $175, while maintaining a Positive rating on its shares. The firm noted better-than-anticipated results in its analysis and also described the broad-based strength of the results, reflected by increased profit guidance for all three business segments.
Overall, Wall Street analysts maintain a positive outlook for RTX, with a consensus Buy rating and an average share price upside potential of 5%.
RTX Corporation (NYSE:RTX) is a giant in the global aerospace and defense industry, providing systems and services to commercial, military, and government clients. It operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.
1. GE Aerospace (NYSE:GE)
Market Cap: $323.2 Billion
Number of Hedge Fund Holders: 100
GE Aerospace (NYSE:GE) is among the 10 Largest Defense Stocks in 2025. On October 22, UBS analyst Gavin Parsons lifted the stock’s price target to $366 from $344, while maintaining a Buy rating.
The adjustment followed the company’s third-quarter earnings call the day before, during which management gave upbeat commentary and raised the company’s 2025 outlook. UBS said that it expects GE Aerospace (NYSE:GE) to continue beating and raising, despite the aircraft engine supplier already setting an increasingly higher bar for itself.
The investment banking firm noted the strength of the end markets and praised GE Aerospace’s (NYSE:GE) operational performance. While it anticipates a deceleration in aftermarket growth next year, UBS sees several areas where strong performance could lead to upside to consensus estimates for the company.
RBC Capital also provided an update on the stock, reiterating its Outperform rating for GE Aerospace (NYSE:GE) and maintaining a $340 price target.
GE Aerospace (NYSE:GE) is a global aerospace propulsion, services, and systems company with an installed base of around 25,000 military and 45,000 commercial aircraft engines.
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