The Publicly Traded Companies at the Center of U.S. Government Spending
Every year, the federal government distributes hundreds of billions of dollars in contracts to private companies. The recipients of that spending aren’t obscure — many are publicly traded on the NYSE and Nasdaq, reporting earnings every quarter and disclosing their government contract activity in detail.
U.S. national defense spending reached approximately $919 billion in FY2025, accounting for roughly 13% of the total federal budget. Over the five-year period from 2020 to 2024, Pentagon contract obligations were heavily concentrated — five companies collectively received $771 billion in prime contract awards during that window.
Here’s a look at four of those companies and what their most recent earnings reports show about the scale and current state of that relationship.
The Companies
1. Lockheed Martin (NYSE: LMT) — Aeronautics, Missiles & Space
Lockheed Martin is the largest defense contractor in the United States by revenue. The company designs and manufactures fighter aircraft, missile defense systems, satellites, and a range of other defense platforms for the U.S. government and allied nations. In FY2025, Lockheed received approximately $69 billion in U.S. government contract obligations — the largest of any single defense contractor.
In Q1 2026, the company reported revenue of $18 billion, flat compared to the prior year. Recent contract activity included a $4.8 billion PAC-3 missile production agreement and a $1.5 billion F-16 fighter jet contract with the Peruvian Air Force — the first F-16 direct commercial sale in decades. Management maintained full-year 2026 guidance for mid-single-digit revenue growth.
2. RTX Corporation (NYSE: RTX) — Missile Systems, Aerospace & Defense Electronics
RTX operates across three divisions: Raytheon, which produces missile systems and air defense platforms; Collins Aerospace, which supplies avionics and aircraft systems; and Pratt & Whitney, which manufactures aircraft engines.
In Q1 2026, RTX’s Raytheon division reported revenue of $6.9 billion, up 10% year-over-year, driven by higher volumes across land and air defense systems including Patriot and GEM-T, as well as increased output in naval munitions programs. Total Q1 bookings for Raytheon reached $6.6 billion, with the division’s overall backlog standing at $74 billion. RTX also signed five framework agreements with the U.S. Department of Defense covering key munitions programs including Tomahawk, AMRAAM, and the Standard Missile family.
3. General Dynamics (NYSE: GD) — Submarines, Land Systems & Federal IT
General Dynamics operates across four business lines: shipbuilding, land combat systems, aerospace, and federal IT services. It is the sole designer and builder of U.S. nuclear submarines.
In Q1 2026, General Dynamics reported revenue of $13.5 billion, up 10.3% year-over-year, with diluted earnings per share of $4.10, up 12% from the prior year. Total Q1 bookings reached $26.6 billion — a 2-to-1 book-to-bill ratio — resulting in a total backlog of $130.8 billion. The company’s Electric Boat division was awarded a $15.38 billion Columbia-class submarine contract in April 2026.
4. Booz Allen Hamilton (NYSE: BAH) — Defense Technology & Consulting
Booz Allen Hamilton operates at a different layer of the government vendor ecosystem — not hardware, but technology services. The company provides cybersecurity, artificial intelligence, and data analytics services to federal agencies including the Department of Defense and the intelligence community.
Booz Allen reported full-year fiscal 2026 revenue of $11.2 billion, down 6.4% year-over-year, reflecting a slower government procurement and funding environment during the period. Despite the revenue decline, adjusted EBITDA margin held steady at 11%, adjusted diluted earnings per share rose 2.5% to $6.51, and the company’s backlog reached $38.2 billion with a trailing twelve-month book-to-bill ratio of 1.1x — indicating continued demand for its services across federal agencies.
The Bigger Picture
The U.S. government is the single largest customer of a significant portion of the American economy. The companies profiled here don’t sell to consumers — they operate under multi-year government contracts that are publicly disclosed and verifiable through federal procurement databases.
H.R. 1, passed in 2025, increases Pentagon and military-related spending by over 13% from FY2025, pushing national defense spending beyond the $1 trillion mark for FY2026. The scale of that spending — and the relatively small number of publicly traded companies that receive the bulk of it — is the story behind Washington’s biggest vendors.
This report is for informational and educational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Always conduct your own research before making any investment decisions.
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