In this article, we will list the 5 Best Performing Defense Stocks So Far in 2026. Please visit 10 Best Performing Defense Stocks So Far in 2026 if you’d like to see an extended list and how we came up with it.
5. Astronics Corporation (NASDAQ:ATRO)
YTD Return: 49%
Number of Hedge Fund Holders: 43
Astronics Corporation (NASDAQ:ATRO) is among the 10 Best Performing Defense Stocks So Far in 2026, with year-to-date gains of 49% as of May 22. Over the past 12 months, the company’s shares have been up 171%.
Investors continue to pile into the stock, anticipating the ongoing momentum to continue, much of which is driven by rising sales, an upward guidance revision, margin expansion, and a record backlog. According to reports, Pertento Partners LLP on May 14 initiated a new position in the company by acquiring 815,333 shares worth approximately $59 million.
Photo by Arturo Añez on Unsplash
On May 12, Astronics Corporation (NASDAQ:ATRO) reported strong results for Q1 2026, with sales increasing 12% from last year to $230.6 million. The increase was mainly driven by strength in the Aerospace segment, up 11.7%, amid robust demand from the commercial transport market. Sales for the Test Systems segment grew 15.4% year-over-year.
Net income for the quarter came in at $0.67 per diluted share, up from $0.26 in the prior year’s period. Adjusted EBITDA increased 23.3% to $37.9 million. The company had new order bookings of $290.4 million during the quarter, bringing the total backlog to a record $734.3 million.
Considering an encouraging beginning to 2026, the management announced to raise its full-year revenue guidance to between $970 million and $1 billion, up from its initial estimated range of $950 million and $990 million.
Astronics Corporation (NASDAQ:ATRO) provides advanced technologies to global aerospace, defense, and electronics clients. Some of its offerings include lighting and safety systems, aircraft electronics integration, automated test systems, and distribution and motion systems, among other products and services.
4. Ducommun Incorporated (NYSE:DCO)
YTD Return: 51%
Number of Hedge Fund Holders: 24
Ducommun Incorporated (NYSE:DCO) is among the 10 Best Performing Defense Stocks So Far in 2026. On May 18, Citigroup raised its price target on the stock to $167 from $141 and kept a Buy rating after the firm updated its model for companies in the aerospace and defense sector.
This follows RBC Capital’s May 13 update, which raised the price target to $155 from $150 and reiterated an Outperform rating after the company posted robust first-quarter fiscal 2026 results.
In a research note to investors, the firm noted that adjusted EBITDA had surpassed expectations by 16%. According to TipRanks, RBC Capital attributed the performance to lower-than-anticipated de-stocking in commercial aerospace.
As of the close of business on May 22, Wall Street has a Strong Buy rating on Ducommun Incorporated (NYSE:DCO) with an average share price upside potential of 12%.
The company reported a revenue of $209 million for Q1, increasing 9% year-over-year and led by strength in commercial aerospace and gains in the defense business. Gross margin grew 70 bps to 26.9%. Adjusted EBITDA was up 19% to $35.4 million, while adjusted net income stood at 75 cents per diluted share, compared to 23 cents during the same period in 2025.
Ducommun Incorporated (NYSE:DCO) provides manufacturing solutions to customers in the global aerospace, defense, military, space, and industrial markets, with its core expertise in Electronic Systems and Structural Systems. The stock is up 51% year-to-date, as of May 22.
3. Voyager Technologies, Inc. (NYSE:VOYG)
YTD Return: 71%
Number of Hedge Fund Holders: 35
Voyager Technologies, Inc. (NYSE:VOYG) is among the 10 Best Performing Defense Stocks So Far in 2026. On May 18, Citigroup lifted its price target on the stock to $44 from $36 and reiterated a Buy rating. The adjustment came after the firm revised its models for stocks in the aerospace and defense sector.
According to a report on TipRanks, Citigroup said that it does not anticipate an ‘immediate V-shaped rally’ without an end to the Iran war, while adding that the recent selloffs present buying opportunities for investors. The bank sees aerospace recovering first and defense later on.
As of the close of business on May 22, Voyager Technologies, Inc. (NYSE:VOYG) is a Moderate Buy based on the recommendations of 8 analysts. The stock has a one-year average share price target of $38.63, representing a downside of 13%.
The company’s shares have surged 70% since the announcement of first-quarter 2026 results on May 4, with backlog increasing 54% year-over-year to reach a record $275.3 million, and the management lifting its revenue guidance for the full year.
Investors have also responded positively to news this month about the company collaborating with Exobiosphere to launch the first automated drug screening mission in space. The stock is up 71% year-to-date, as of the close on May 22.
Voyager Technologies Inc. (NYSE:VOYG) is a defense technology and space solutions company that is committed to advancing and delivering transformative, mission-critical solutions.
2. Rocket Lab Corporation (NASDAQ:RKLB)
YTD Return: 95%
Number of Hedge Fund Holders: 45
Rocket Lab Corporation (NASDAQ:RKLB) is among the 10 Best Performing Defense Stocks So Far in 2026. On May 21, the company announced that it had received a $90 million contract from the U.S. Space Force for two geostationary satellites to host a space domain awareness payload.
Under the terms of the agreement, the company will be responsible for designing and building the spacecraft, integrating the Heimdall optical payload, launch integration, and on-orbit operations for a maximum period of five years post commissioning. Both satellites will be built on a Lightning bus, in line with geostationary requirements.
This is the first instance that Rocket Lab Corporation (NASDAQ:RKLB) has been awarded a satellite production program for geostationary orbit and comes after the successful Space Systems Command initiative to build and deliver two Heimdall prototype payloads.
Markets on Friday responded positively to the contract, resulting in the company’s shares climbing over 8%, taking year-to-date returns to 95%.
On the other hand, institutional investors’ interest in the stock is seeing an upward trajectory. According to Insider Monkey’s database for Q4 2025, 45 hedge funds held a stake in the company, up from 34 in the prior quarter. When it comes to analysts’ sentiment, Wall Street has a Moderate Buy rating on RKLB.
Rocket Lab Corporation (NASDAQ:RKLB) is a global leader in launch services and space systems with an established record of delivery success. The company designs and manufactures spacecraft and related components, rockets, and on-orbit management solutions required for the space economy.
1. Redwire Corporation (NYSE:RDW)
YTD Return: 129%
Number of Hedge Fund Holders: 28
Redwire Corporation (NYSE:RDW) is among the 10 Best Performing Defense Stocks So Far in 2026. The stock has surged 47% over the past month, with recent contract awards and business success driving investor confidence. This has taken the year-to-date share price return to 129% as of the close on May 22.
On May 20, the company said it had received a $15 million follow-on order for Stalker uncrewed aerial systems from the 1st Aviation Brigade of the US Army Aviation Center of Excellence, taking the total worth of orders placed over the last eight months to $24.8 million.
A day earlier, Redwire Corporation (NYSE:RDW) announced it had secured a multi-year contract from a NATO member for the Penguin Mk3 uncrewed aerial system. While the country’s name and exact financial details were not disclosed, the contract is said to be valued at ‘high eight-figures’, according to the press release.
The company saw a 57.9% increase in revenue for Q1 2026 to $97 million. It ended the quarter with a book-to-bill ratio of 1.92 and a record backlog of $498.1 million, providing a healthy pipeline of future revenue. Redwire is also seeing improved operational efficiency following the acquisition of Edge Autonomy, suggesting potential future profitability.
Redwire Corporation (NYSE:RDW) is a global space and defense technology company that leverages artificial intelligence and digital engineering to deliver advanced technologies related to autonomous systems, aerospace infrastructure, and multi-domain operations.
While we acknowledge the potential of RDW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RDW and that has 100x upside potential, check out our report about the cheapest AI stock.
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