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GovSpend

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

RankContractorDoD ObligationsPrimary Programs
1Lockheed Martin Corporation$14.4BOther Services
2The Boeing Company$8.6BOther Services
3Electric Boat Corporation$8.6BOther Services
4Humana Government Business Inc.$8.0BOther Services
5Raytheon Company$7.8BOther Services
6Amerisourcebergen Drug Corp.$6.1BOther Services
7Rtx Corporation$5.0BOther Services
8Atlantic Diving Supply, Inc.$4.8BOther Services
9General Dynamics Information Technology, Inc.$4.8BOther Services
10Sikorsky Aircraft Corporation$4.8BOther Services
11Science Applications International Corporation$4.5BIT & Software
12Huntington Ingalls Incorporated$3.9BConstruction
13Amentum Services, Inc.$3.8BOther Services
14Huntington Ingalls Inc.$3.6BConstruction
15Health Net Federal Services, LLC$3.5BOther 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.