Following the US and Israel's "Operation Epic Fury" against Iran, major US defense contractors saw substantial gains. On March 2, 2026, the first trading day after the strikes, Northrop Grumman's stock rose 4.1%, Raytheon Technologies (RTX) jumped 4.7%, and Lockheed Martin climbed approximately 3.1%. All three companies hit 52-week highs. The combined shareholder wealth gain for these top three contractors on that single day was estimated between $25 billion and $30 billion.
These gains were driven by anticipated acceleration of existing contracts and expectations for new orders, particularly for precision-guided missiles and F-35s. For example, Raytheon Technologies, whose Tomahawk cruise missiles were used in the operation, saw a roughly $12.7 billion increase in shareholder wealth. Days before the strikes, RTX announced expanded production agreements with the Pentagon to increase Tomahawk output to over 1,000 missiles per year. Similarly, Lockheed Martin's record backlog of $194 billion in committed contracts was expected to be executed faster, and the company had already signed a deal in January to quadruple production of its $12.77 million THAAD interceptors from 96 to 400 per year.
Defense companies like RTX, Northrop Grumman, and GE Aerospace reported increased orders in the first quarter of 2026. RTX CEO Chris Calio noted strong domestic and international demand, and the company has invested nearly $900 million to expand capacity. US Undersecretary of Defense Jules Hurst stated that President Donald Trump's fiscal 2027 budget requested $1.5 trillion for defense, describing it as a "generational investment." While Boeing Defense saw a more modest 0.97% gain, its JDAM guidance kit business benefited, with the company holding a $7.5 billion contract to produce these widely used munitions, which cost between $25,000 to $84,000 each.
