Defense Spending Breakdown 2026: Top Contractors
Published March 25, 2026 · USASpending.gov data
The Department of Defense spent over $420 billion on contracts in FY2025, more than the entire GDP of most countries. That money flows to a concentrated group of defense prime contractors and a long tail of subcontractors and service providers. Here is where the defense dollars go.
Top Defense Contractors
| Rank | Contractor | DoD Obligations | Primary Programs |
|---|---|---|---|
| 1 | Lockheed Martin Corporation | $45.6B | Other Services |
| 2 | The Boeing Company | $23.8B | Other Services |
| 3 | Raytheon Company | $17.5B | Other Services |
| 4 | Northrop Grumman Systems Corporation | $17.0B | Defense & Weapons |
| 5 | Electric Boat Corporation | $8.6B | Other Services |
| 6 | Humana Government Business Inc. | $8.0B | Other Services |
| 7 | Huntington Ingalls Incorporated | $7.5B | Construction |
| 8 | Leidos, Inc. | $7.2B | Other Services |
| 9 | General Dynamics Information Technology, Inc. | $4.9B | Other Services |
| 10 | Atlantic Diving Supply, Inc. | $4.8B | Other Services |
| 11 | Amentum Services, Inc. | $3.9B | Other Services |
| 12 | Health Net Federal Services, LLC | $3.5B | Other Services |
| 13 | Bae Systems Land & Armaments L.p. | $2.8B | Transportation & Logistics |
| 14 | Caci, Inc. - Federal | $2.8B | Other Services |
| 15 | General Electric Company | $2.7B | Other Services |
Spending by Category
Defense contract spending breaks down into four main buckets:
- Weapons systems and platforms (~40%): Fighter aircraft (F-35), naval vessels (Virginia-class submarines, Ford-class carriers), armored vehicles, and missile systems.
- Services and operations (~25%): Base operations, logistics, maintenance, professional services, and training.
- IT and communications (~20%): Command and control systems, cybersecurity, satellite communications, cloud infrastructure, and intelligence systems.
- Research and development (~15%): Next-generation weapons, hypersonic technology, AI/ML applications, and directed energy weapons.
The Growing IT Share
Defense IT spending has been the fastest-growing category, increasing roughly 12% annually as the DoD modernizes legacy systems, migrates to cloud environments (JWCC contract), and invests in AI capabilities. This has benefited IT-focused contractors like Leidos, SAIC, and Booz Allen Hamilton at the expense of traditional hardware prime contractors.
For all federal contractors (not just defense), see our biggest government contractors ranking. For the full agency breakdown, see federal spending by agency.
Frequently Asked Questions
How much does the U.S. spend on defense?
The U.S. defense budget for FY2026 is approximately $886 billion, making it the largest military budget in the world. This includes the Department of Defense base budget, overseas contingency operations, nuclear weapons programs (Department of Energy), and defense-related activities in other agencies.
Who are the Big 5 defense contractors?
The five largest defense contractors by DoD obligations are Lockheed Martin, RTX (formerly Raytheon Technologies), General Dynamics, Boeing, and Northrop Grumman. Together, they receive roughly 30% of all DoD contract spending.
What does the military spend money on?
DoD contract spending falls into four main categories: weapons systems and platforms (aircraft, ships, vehicles, ~40%), operations and maintenance services (~25%), IT and communications systems (~20%), and research and development (~15%). Personnel costs (military pay and benefits) are separate from contract spending.
About This Data
Defense contractor data from USASpending.gov. Obligations reflect DoD contract commitments. See our methodology.
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