Best Defense Stocks for February 2026

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With geopolitical tensions on the rise and defense budgets growing worldwide, aerospace and defense companies are increasingly on investors' radars. Global military spending recently climbed to record levels, led by the United States, Europe, and key Asia Pacific nations, as governments modernize capabilities across air, sea, cyber and space. From traditional prime contractors to next-generation space systems developers, the defense sector offers a range of opportunities with different risk-reward profiles.

Why it matters

Defense stocks, backed by longterm government contracts, can offer relatively stable revenue streams compared to purely commercial businesses, especially during economic slowdowns when federal spending tends to be more predictable than consumer demand. The defense sector provides exposure to key growth areas like space technology and cybersecurity.

The details

Some of the best defense stocks to buy now include Woodward, GE Aerospace and ATI Inc. Defense firms often operate in oligopolistic markets, backed by long-term government contracts and multiyear procurement programs. This can translate into relatively stable revenue streams. Examples of leading public defense companies include Lockheed Martin, Raytheon Technologies, Northrop Grumman, General Dynamics, and Boeing. Newer space-oriented contractors like Intuitive Machines are also emerging as players in the defense sector.

• Global military spending recently climbed to record levels.
• The article was published on February 18, 2026.