US Defense Budget Boosts Space, Aircraft, Nuclear Priorities in FY2026

The U.S. defense sector is poised for growth in 2025 and beyond, driven by increased defense budgets and evolving military priorities. The Fiscal Year 2026 defense budget, exceeding $1 trillion, prioritizes advanced technologies such as the Golden Dome missile defense shield, space dominance, fighter aircraft, and nuclear deterrence, signaling a shift toward modernization and strategic capabilities. This budget increase, supported by a 13% rise proposed under the Trump administration, boosts both commercial aviation and defense industry players, encouraging contract wins and production expansion. Concurrently, the U.S. Department of the Air Force is advancing its Collaborative Combat Aircraft program, focusing on unmanned systems, human-machine teaming, and cost-effective scalable combat power, with significant testing underway and production decisions expected in 2026. Meanwhile, geopolitical tensions and competition are accelerating defense technology innovation, including autonomous systems and undersea warfare capabilities, as the U.S. maintains a leading role amid global strategic competition. These developments collectively suggest a reshuffling of the defense industry landscape, favoring companies aligned with new acquisition priorities and cutting-edge technology integration.